Analysis Of Credit Support For Cotton Planting Industry In Xinjiang Under The Background Of Target Price Pilot

Since the cotton target price pilot has been implemented in Xinjiang in 2014,the period of capital recycling has been prolonged and the risk of cotton planting has been increased.Facing fallen cotton price and raised cotton cultivation costs,cotton farmers realize that only change the cotton production mode can increase the income of cotton yield.However,changes in production methods cannot be separated from the support of credit.How do the financial institutions meet the growing demand of cotton planting capital for cotton farmers after implementing the cotton target price pilot? What support do financial institutions can provide for cotton cultivation? How do the financial institutions adapt to the changes of the demand for funds in the cotton industry and what adjustments will be made on its service model and cotton supporting policy? This is the biggest problem facing the development of cotton cultivation in Xinjiang.In order to solve this problem,this study focuses on the cotton cultivation and the agriculture-related financial institutions to promote the credit support for the cotton planting industry.The aim of this paper is to improve the financial service mode,and to explore credit support path and countermeasure to the development of Xinjiang's cotton planting industry under the background of the target price pilot by theoretical and empirical analysis,and this paper draws the following conclusions:First,the fundamental way to increase cotton income is to reduce the cost of cotton production through large-scale cultivation.Therefore,changing the cotton planting mode to take the road of Scale,industrialization,mechanization is the trend.These need credit funds to support the whole process from Cotton seed cultivation,water conservation irrigation,information management,mechanized harvesting and residual film processing.Second,make an empirical analysis of the relations between cotton planting and creditsupport in Xinjiang.The results show that credit support is conducive to the development of cotton cultivation in Xinjiang.The efforts should be increased that the credit to support cotton planting industry.Third,Cotton farmers' credit demand is characterized by strong willingness to borrow,large amount of borrowing and diversification of borrowing demand.The traditional loan products cannot meet the credit demand of cotton farmers in the face of lower cotton price and increasing cultivation cost.The financial institutions need to innovate credit products and services timely.And the financial environment characteristics of cotton farmers in the region have the greatest impact on the willingness of farmers to borrow,therefore,financial institutions need to improve the rural financial environment as soon as possible.Fourth,the main reasons of the lack of credit supply are credit risk increases,the credit product innovation is insufficient,and the outflow of rural capital.Under the background of the cotton target price pilot,untimely adjustment on credit supply products and services of cotton planting by agricultural financial institutions,caused the cotton planting industry credit demand and credit supply dislocation.Therefore,in order to support the sustainable development of cotton planting industry in Xinjiang,it is necessary for the agricultural financial institutions to adjust their financial service mode and realize precision supporting of cotton planting industry.Fifth,that the cotton planting model changes,high-yield cotton field demonstration area construction,green agriculture production cannot be achieved without credit support.Therefore,puts forward the credit service model which is suitable for the cotton target price pilot from the three aspects of commercial finance,policy finance and cooperative finance,and considers different types of financial institutions should have different service models supporting the cotton planting industry.Six,it is a more effective policy to accurately locate the target market and service objects,to actively innovate new products,to provide multi-faceted services,to establish agricultural loan guarantee funds and risk early warning mechanism,to formulate reasonable creditpolicies and speed up the construction of rural financial legislation at present.This paper analyzes the change of cotton farmers' financial demand and the change of credit supply after the target price pilot,and reveals the reasons for the credit demand and credit supply dislocation of cotton planting.From the perspective of commercial finance,cooperative finance and policy finance,creatively constructs three-dimensional credit service model and its application object.Put forward the innovation direction of cotton credit products,constructed the early warning mechanism of agricultural loan risk,and provided the reform path for credit support cotton planting industry.