Research On Demand And Credit Constraints Of Forest Property Mortgage Loan Of Farmers

After the reform of collective forest property right,the represented property rights,management right,right to disposal,right to yields of forest sources in forest right certificate has become the mortgage for financing institutions examining potential borrowers and decreasing credit exposures.Therefore,forest property mortgage loan is implemented with the dual-power pushing of government and market and becomes a financing tool,which also activates the "sleeping" capital of capital right certificate.The accomplishment of a forest property mortgage loan is the equilibrium outcome under the combined action of farmer's demand of forest property mortgage loan and the credit supply of financing institutions,which means that farmers need to have the demand of forest property mortgage loan and take actions to apply for the loan.After acquiring the approval of financing institutions,the farmers can get a forest property mortgage loan.According to domestic researches of different forest zones,Chinese forest property mortgage loan affairs are trapped into the dilemma of bank's "difficulty in loaning"and farmer's "difficulty in gaining loan",which is shown in following three conditions:insufficient demand of farmer's forest property mortgage loan;no action of applying loans(demand credit constraints)due to the fear of bearing risks and high transaction cost;the forest property mortgage loan applied by farmers doesn't acquire the approval of financing institutions(supply credit constraints).As an important supporting measure of the collective forest rights system reform,forest property mortgage loan policy should effectively overcome the insufficient demand of farmers and the above two kinds of credit constraints,through which the policy can indeed help farmers relieve the shortage of production funds in forest industry,vitalize forest resources and realize the increasing both production and income.Therefore,it should study the demand of farmer's demand of forest property mortgage loan and credit constraints status,identify the demand of farmer's demand of forest property mortgage and the critical factors of credit constraints,which has the important practical and theoretical innovative significance and provides reference frames for decision-making sections optimizing forest property mortgage loan policies.First,basing on the laws and regulations database(Law Treasure V5)of "Peking University Legal Information Network",the research collects forest property mortgage loan policies of the central government,ministries and commissions,provinces and cities,and then analyzes the development history of Chinese forest property mortgage loan polices with the amount and changes of policies.Second,basing on the direct inducing examine method(DEM),the research identifies farmer's effective,potential and implicit demand of forest property mortgage loan,as well as the demand credit constraints and supply credit constraints.Next,the research designs the theoretical and analytical framework and empirical research thought of farmer's credit constraints of forest property mortgage loan.Thirds,the research designs the measured variables of the credit demand,supply credit constraints(when suffering constraints,the acquired loan is 0;when suffering no constraint,the acquired loan is 1),the supply credit constraints(when suffering constraints,the acquired loan is 1;when suffering no constraint,the acquired loan is 0)and the potential influence factors.According to the questionnaire data of Fujian 577 farmers,the research takes the demand-supply interactive relationship of forest property mortgage loan into consideration and utilizes bivariate Probit model to jointly identify the key influence factors of the demand and supply credit constraints.Next,the research brings in binary Probit model to identify the key influence factors of demand credit constraints;Finally,basing on above identify results and the existing problems of forest property mortgage loans,the research proposes the suggestions of optimizing policies of forest property mortgage loan.Basing on above theoretical analysis and empirical research,the paper comes to following conclusions:first,central and local government always emphasizes on formulating the politic documents of forest property mortgage loan to increase the capital supply of forest property mortgage loan.For example,the amount of the central and local policies of forest property mortgage loan increased from 2 to 91 since 2007.Second,there is a high demand of forest property mortgage loan among sample farmers,what the reason is that 468 out of 577 farmers have been identified by the direct and induced inquiry method who have demands for forest property mortgage loan.The demand rate reaches to 81.11%.Third,the policies of increasing capital fund of forest property mortgage loan has acquired favorable results.The sampling farmers who suffer supply credit constraints only occupies a small proportion,while the proportion of being restrained by demand credit is high,therefore,the major work in the future is to urge the farmers who have the demand for forest property mortgage loan to apply for loans.The reason is shown as follows:Among 468 sampling farmers with the demands of forest property mortgage loans,only 124 farmers take actions to apply for loans.It means that 344 farmers suffer demand credit constraints,so the occurrence rate has reached 73.5%.However,among the 124 farmers who have applied for loans,only 16 farmers don't acquire the forest property mortgage loans.The occurrence rate of supply credit constraints is 12.9%.Fourth,the participation of forestry cooperative organization,fixed assets purchase expenses,the easiness of loans,the satisfaction degree of loan,the total amount of personal loan,the ownership of forestry commercial insurance and geographic position has obvious influences on farmer's demand of forest property mortgage loan(the demand is 1,no demand is 0).While the age has obvious negative influences on the demand.Fifth,the testing result of bivariate Probit model finds that the product supply of forest property mortgage loan of financing institutions obviously influences farmers' demands.The larger forestland area,more fixed asset acquisition expenditure,more interest subsidy of mortgage loan and bigger loan commitment is beneficial to decrease the supply credit constraints of forest property mortgage loan.If the demand is stable,the interest subsidy policy of forestry property mortgage loan is beneficial to increase the supply of forest property mortgage loan capital or credit products,decrease the occurrence probability of supply credit constraints and acquire good implement achievements.Sixth,household income,expenditure for household business,the participation of forestry cooperation organization,the obvious minus regression coefficient of the easiness assessment of loan and the obvious minus of marginal effect also contribute to decrease the demand credit constraints of farmer's forest property mortgage loan.More household-saving,higher probability of occurrence of supply credit constraints.The research significance and innovation are shown as follows:first,the research literature is different from previous literature.The research takes sample classification completeness into consideration and follows the path of "if there is any demand for loans" ?" if farmers apply for loans"?"if the loans are approved".Basing on the direct inducing examining method(DEM),the research can identify the effective,potential and implicit demands of forest property mortgage loans,as well as the demand and supply credit constraints,through which the research can more accurately estimate "public will" foundation of forest property mortgage loans and provides side basis of increasing policy thoughts of finance supply subjects and amounts.Second,comparing with previous literature,the research introduces demand identifiable bivariate Probit model and overcomes the deficiency of univariate Probit and Logit model-ignoring the interactive influences between demand and supply factors".The research more precisely identifies the key influence factors of demand and supply credit constraints of forest property mortgage loan of farmers.Thirds,the research identifies the key influence factors "if taking actions to apply for loans" for farmers,which refers the key influence factors of supply credit constraints.It indeed provides reference frames for decision-making sections formulating and completing relevant policies encouraging farmers to apply for loans,which can further enrich the market and "pubic will" foundation of forest property mortgage loans.Fourthly,new evidence is provided forjudging that"Forest Property Mortgage Loan Discount Policy is only effective for farmers with requirements for Forest Property Mortgage Loan" out of reason:in the probit model without identifying the univariant of mortgage loan effectively,whether the mortgage loan is subsidized has no significant impact on supply-type credit constraint;but in the probit model identifying the bivariate of mortgage loan effectively,subsidized loan is conductive for reducing supply-type credit constraint for farmers.