Research On The Factors Affecting The Non-price Of Farmer Loan Supply

The issues of agriculture,rural areas and farmers are broad and profound in China.China's economic development has made great achievements,but agricultural development is still facing the formidable tasks of structural optimization,quality improvement,benefits improvement and increasing farmers' income.The main contradiction of agriculture is not supply shortage but the internal structural contradiction,and supply shortage and oversupply periodically exist.Structural reform to boost agricultural supply side has become the main direction of agricultural policy reform.In the new historical stage,facing the challenges of agricultural and rural development,how to further activate the rural economic and social development,how to take the initiatives to meet the needs of the rural practice,the characteristics of agriculture and the needs of farmers,how to continue to deepen the rural financial reform and innovation,how to establish rural financial service system which conforms to the characteristics of agriculture and farmers' demand,become important issues of social concern.At present,the difficulties for farmers to get loans and the insufficient credit supply have already impacted on agricultural production,rural development and farmers' life.According to the basic economic principle,if the transaction cost is zero in the market with complete information,the price(interest rate)can make the credit market clearing,but this kind of perfect hypothesis does not exist in practice.Loan supply is the behaviors and process for financial institutions of allocating scarce credit resources of the loan with strict restrictions on transaction scale and scale of the market.There is market failure in loan supply resource allocation,which means that the loan supply price lever does not fully play a role in the process.The existence of non-price mechanism has important impact on lending market supply and demand balance.According to the basic theory of supply and demand,the non price factors could lead to the move of a supply curve or demand curve.The price of this paper refers to interest rates,and all other factors are called non-price factors.Price factors of the loan supply are more influenced by government policy and regulation,and non-price factors are more affected by lending institutions and regulation.This paper focuses on the non-price factors affecting loans supply for peasant household,and taking Chongqing as an example,from the perspectives of farmers' own situation,loan supply management costs and risks,the paper aims to analyze its effects on loans supply for peasant households.The research methods of the paper are as follows: by means of questionnaire and interview methods to obtain basic data;based on the descriptive statistics analysis method to investigate the general characteristics of loans supply and demand for peasant households,the change trend and the equilibrium of supply and demand;Based on the sum-up and theoretical deduction,and by building a theoretical model analysis of non-price factors influencing loans supply for peasant household;With the aid of comprehensive empirical analysis method,empirical test non-price factors impacts on peasant household loans supply.The main research conclusions are as follows.1.The government macroeconomic regulation and control policy makes farmers loan supply shortage situation improved.Based on the theoretical logic and practical exploration,taking Chongqing as the example,the study on the characteristics of the peasant household loan demand and supply found that in recent years,with continuous advance of the rural financial reform,the existing supply of formal financial institutions loans meets some demand of farmers,but compared with the reality needs,there are still a certain gap,which also reflects the problem of insufficient supply of the peasant household loans.Rural credit cooperative organization is main supply for the peasant household loan,and the agricultural bank of China and the postal savings bank is increasing the loan supply ratio for farmers.Other institutions like rural capital support have relatively high ratio for the peasant household loans supply but the development speed is slow with small loan amount.There are both credit market equilibrium and disequilibrium in China rural credit market,and it will continue for a long time.Although in recent years the peasant household loan supply shortage has generally been improving,but in reality the farmers financial repression phenomenon is still serious,which requires constant attention and further promote for the reform of the rural financial system.2.The type and supply channels of Peasant household loans have been changing.Due to strict loan conditions of general financial institutions,general loan demand of farmers is restrained.Along with the change of farmers' production and operation mode and the land system reform advancement,it is more productive loans to support the new type of agricultural management entities of intensive,large-scale operation such as professional investors and family farms.In Chongqing market,recent years the peasant household loan supply tend to shift from productive loans to life loans,and more farmers dependent on the informal financial institutions loans.Compared potential farmers with productive loan demand,farmers with life loan demand has weak ability in producing,who cannot offer real effective collateral combined with the single source of income,so the probability of obtaining loan supply is smaller.As a result,this group mainly depend on private microfinance,formal financial institutions of small credit loan,or a small amount of business loan to meet their credit demand.From the perspectives of the degrees of the demand for loans,the degree of practical loan demand is bigger than that of potential loan demand.From the perspectives of the amount of a single loan,the loan amount of production loans is greater than that of consumer loans.3.The role that Farmers loans play in improving agricultural development and living standards is remarkable.The regression model shows that increase in the ability of obtaining loans for farmers living in poor areas have positive influence on farmer's agricultural production decision(purchases of fertilizer,economic crops planting area)and the consumption level of farmers.Farmers loans have play a very important role in expanding the scale of production and operation of farmers,improving the farmers productivity,enhancing the ability of farmers to supply products,increasing farmers income and promoting rural economic development.Property factors determine the security level of production and consumption of farmers,and significantly affect the farmer's production and consumption decisions.Farmers' initial savings increase costs of production and consumption of economic crops,and higher grain stocks increase the purchase of fertilizer and economic crops planting areas,which is beneficial for farmers to expand reproduction and promote the rural economic sustainable development.The ability of farmers to obtain loans has no significant impact on the private activities.The ability of farmers to get formal credit resources increases the possibility that farmers work to earn wages.4.High farmer credit default risk causes that financial institutions are unlikely to lend a lot.With the help of logit model,this paper finds that farmers cultural degree is negatively related to the credit default through empirical study of the factors affecting peasant household credit default.The credit default rate of pure grain producers is higher than that of peasant household with additional income,which confirms the difficulties of farmers to maintain the living costs,so that most farmers' rational choice is to seek additional income except grain production income.The credit default rate of local farmers family is lower than is that of working families in the local area.And Age,family biggest spending usage,coefficient of family support,family income channels and labor force have no significant effects on peasant household credit default rate,which reflects that the burden of the family is not a direct cause to credit default for peasant household.Loan project investment failure,loan misappropriate as well as the loss of credit is the main reason for credit default to the peasant household.The family burden is not a direct cause of peasant household credit default.5.High management costs of farmers' loans causes financial institutions to reduce the loan supply.The analysis of logarithm likelihood function finds that distance between borrowers and financial institutions has a negative impact on loan supply.And the method of account maintenance and its corresponding frequency has an impact on choosing borrowers for financial institutions.The longer it will cost to conduct loan survey,the more negative impact it has for financial institutions to choose the channels.Loans scale has significant effect on choosing borrowers for financial institutions.The larger the loan scale is,the more possibility there is of choosing large enterprise as borrowers.Frequency of loans has a negative impact on choosing borrowers for financial institutions.Not only the amount of peasant household loans is very small,but also loan frequency is very high.So it is unlikely for financial institutions to choose farmers as borrowers,due to the high costs of human resources,material resources and financial resources.6.To promote the rural financial reform is fundamental to reduce the influence of non-price factors.Based on the empirical research results,the service principle of "agriculture,rural areas and farmers" the sustainable development of rural finance,institutional paradigm and function principle,the structure of the total rural finance and structure coordination principle,the principle of government policies guide,the combination of financial market regulation and property right innovation organization multiplication principle,following the GSP the basic direction of financial services and comprehensive financial services,we make efforts to improve peasant household loans supply system in China.Specific measures are as follows: to enhance the capacity of commercial banking services to agriculture,rural areas and farmers;to increase political support to agriculture;Specification and encourage cooperative financial institutions development;to strengthen regulation and guidance of the involution behavior;to develop of new type of banking services in order to enhance agriculture service ability,etc.Based on improving the quality and efficiency of peasant household loans,the paper suggests to strengthen the whole regulation of peasant household loans,enhance farmers credit record binding and control loan management costs,etc.The creativity points of this paper are as follows.1.Combined with the supply side structural reform thoughts and ideas,to study from the perspective of peasant household loans supply,this paper tries to explain the supply and demand mismatches of peasant household loans from a new perspective.Existing research mostly starts from the angle of the borrowers and the demand for loans,ignoring the important role of the supply side play in farmers' loans in China.According to the concept of "supply" in economics,this paper creates a new concept of farmers' loan supply based on existing research literature,and discusses the non-price factors of farmers' loan supply from theoretical and empirical perspectives.In this paper,the peasant household loan supply concept fully considers the complexity of the peasant household loan supply,the characteristics of the system and process,which is an integrated concept of whole process systematic management.Based on the current credit rationing system,it is more scientific to explore the internal mechanism and rules of the farmers' production decisions and behavior.2.Based on peasant household's own factors,loan management cost and risk level,we consider comprehensive inspection the non-price factors impact on the supply of peasant household loan as mentioned above,to further enrich and expand the connotation of the rural financial theory system.Price in this paper refers to interest rates,and loan supply price factors are more influenced by government policy and regulation.The study focuses on non-price factors,which involve government policy design,the farmers' own factors,loan management costs and risk control,etc.The existence of the non-price mechanism can have an important impact on loan market equilibrium,which leads to the emergence of the phenomenon of credit supply.Based on the frame of agriculture,countryside,farmers and economic,financial,social system framework,we explore non-price factors such as farmers' own factors,loan management costs and risk on the peasant household loans supply mechanism,and by building a model to carry out empirical research to test the significance of non-price factors affecting peasant household loans supply,which is relatively rare in the peasant household loan supply research field.On this basis,the paper gives suggestions to optimize and improve the condition of the shortage supply of peasant household loans.3.From the interdisciplinary perspective,we consider the non-price factors affecting peasant household loan supply analysis into standardized management,economics,demography and sociology analytical paradigm,in order to interpret non-price factors mechanism of peasant household loans supply.Existing research about peasant household loan demand and macro loan supply in China is common,but research on the specification of organic combination of management,economics,and demography and sociology research paradigm in the analysis is uncommon.The issues of Agriculture,rural areas and farmers are the basis of China's stability and development.Theory and practical study shows that traditional financial services system does not work well in many ways such as species,diversity and flexibility in the field of agriculture,rural areas and farmers.The traditional financial service system can't work well,especially in the agricultural supply side structure reform background.Some small businesses and farmers get insufficient credit support to expand production due to great dependence on the mortgage and guarantee.Under the new normal economy,based on the multidisciplinary cross Angle of view,discussion of non-price factors affecting peasant household loans supply is conducive to give suggestions and solutions on the problems of supply and demand balance of farmers' loans.Not only the paper is creative in the history of research paradigm,but also the paper is a good exploration for the above problems.4.We explore the dualism of the peasant household loan supply characteristics,revealing the non-price factors impacts on the supply of peasant household loans the inherent logic rules.In China's rural loan market there is both disequilibrium and equilibrium of loan supply at the same time,which does not trade off.Bases on methods such as questionnaire survey,empirical research variables selection in the process of research,comprehensive investigation,we explore the incomplete institutional constraints in China's rural financial system reform,and pay attention to the macro interest rates guide and rational economic man effects,and also attaches great importance to the reality of farmers' own factors,social factors and variables,trying to explain the logic and reality in empirical research about peasant household loans characteristic expression of supply and demand,theoretical derivation,,and other important link under the background of non-price factors impacts on the supply of peasant household loans.China's rural financial system reform has important effects on peasant household loans supply.Unbalanced loan supply and balanced loan supply phenomena will persist over a long period of time,which shows that it is of practical significance to conduct in-depth study.