Research On Influencing Factors Of Rural Land Mortgage Loan Products Supply And Demand Under The Background Of“Separation Of Three Rights” Reform

Since the reform and opening up,Chinese economic and social development has made great achievements,and the urban and rural areas have undergone tremendous changes.However,the loss of rural factors caused by the two-element structure of urban and rural areas is still obvious,especially the one-way flow of capital from rural areas to cities.The situation seriously restricts the development of agricultural and rural economy,making agriculture and rural areas a short and weak link for Chinese decisive war and a well-off society in an all-round way.The key problem of "agriculture,countryside and farmers" lies in the shortage of capital elements.Thus,the imperfection of property right system leads to the lack of necessary collateral,resulting in the insufficient supply of rural financial products,the ineffective flow and accumulation of factors in rural areas.The contradiction among the net outflow of rural fundings,the difficulty of financing,the high cost of financing and the "financial repression" has become the main bottleneck restricting the development of rural finance.Land is the most basic and import factor of production in rural areas.The Rural Land Ownership Determination and Certification in the reform expands the function of rural land as a mortgage collateral.This certification launchs an institutional foundation for rural land transfer,provides possibilities for rural land asset capitalization and financialization and strengthens farmers through formal channels.The above positive effects of this cetification have activated rural finance and attracted more fundings to invest in rural economic construction.Further studies in the factors affecting the supply and demand of rural financial products and continuous improvements of the rural market economic system are the basic premise for promoting the development of agricultural and rural economy,as well as the important content of deepening rural reform in China.In order to solve the rural financial dilemma,the national and local governments have carried out a series of systematic reforms from the land property right system to the financial system.After the Third Plenary Session of the 17 th Central Committee of the Communist Party of China in2008,the pilot of rural land mortgage loan,an important form of integrated development of rural land and finance,was accelerated.The Third Plenary Session of the 18 th Central Committee of the Communist Party of China clearly pointed out that we should explore new ways of agricultural financing,strengthen credit support to agricultural operators,and promote the development of modern agriculture.In 2015,232 counties in China promoted the pilot of "two rights" mortgage loan and innovated the rural financial system.In 2016,the state promulgated and implemented the opinions on improving the separation of management rights of rural land ownership contracting right,which addressed that the land contracting management right should be divided into contracting right and management right.Moreover,the land ownership,contracting right and management right should be implemented simultaneously,in order to make use of the economic functions of rural land.In the report of the 19 th National Congress of the Communist Party of China,it was once again proposed that we should deepen the reform of rural land system and improve the"Separation of Three Rights” of rural land.To a certain extent,the implementation of the system of "separation of three powers" has increased the financing channels of rural families and opened the dead end of the relationship between supply and demand of rural finance.Therefore,this paper focuses on land that is the most economic value but serious deficiency of capitalization and combines land resources with rural finance to explore the factors that affect the supply and demand of rural land mortgage loan products.It is perspective to provide academic and practical guidance for promoting the reform and innovation of rural land mortgage loan products,so as to fully utilize the financing function of land and solve the contradiction between the supply and demand of rural finance.It can meet the multilevel demand of agricultural production fundings and realize the vigorous development of rural economy.Based on the background of the “Separation of Three Rights” of land property rights,this study focused on the central task of optimizing the development and application of rural land mortgage loan products in China and combined with the survey data of 12 financial institutions and 543 farmers to deeply analyze the influencing factors of the demand and supply of rural land mortgage loan products from the perspective of economics and empirical analysis.Futhermore,it analyzes the problem and influencing factors of the supply and demand dislocation of rural land mortgage loan products,promoting policy recommendations from the perspective of system theory.The main contents include four aspects: Firstly,on the basis of the analysis of the current situation of farmers’ demand for land mortgage loan products,a Probit model is constructed.The core variables for this model are the issuance of land confirmation,the circulation of agricultural land and the level of farmers’ financial knowledge.This model was used to analyze the impacts of the above variables on on farmers’ demand for land mortgage loan products.Meanwhile,IV-Probit model was used to test the endogeneity of core variables.Secondly,this paper clarified the role of financial institutions and government in the supply process of rural land mortgage loan products and sorted out the supply situation of financial institutions torural land mortgage loan products.Additionally,it used Probit model to explore the influencing factors on the supply of farmers’ access to land mortgage loan products and find out the reasons for the lack of rural land mortgage loan supply.Thirdly,on the basis of the analysis of the factors influencing the supply and demand of rural land mortgage loan,this paper further intepreted the characteristics and causes of the dislocation of the supply and demand of rural land mortgage loan products.It also constructed the identification mechanism of the dislocation of supply and demand as well as selected the farmers with the demand of land mortgage loan products in the sample.Besides,it identified the farmers with the dislocation of supply and demand and used the Probit model to analyze the impact of the dislocation of supply and demand factor analysis.Fourthly,combined with the above analysis of demand and supply factors,this paper suggested corresponding countermeasures and suggestions to consolidate the demand guarantee system of rural land mortgage loan products and to strengthen the supply support system of rural land financial products;for the problem of supply and demand dislocation of rural land mortgage loan products,this paper optimized the supply and demand matching support system and created a good development environment of rural land mortgage loan products.The main conclusions of this paper are as follows:1.“Separation of Three Rights” reform is an essential condition of rural land financial development.Under this reform background,the separation of the rural land management right from the contract right increased the effective financial demand of the rural management subject and appealed more financial institutions participating in the rural land financial market.Therefore,the rural land resources will be further transformed into capital,which will bring new opportunities for the development of the rural economy in China.2.The demand for rural land mortgage loan products are strong but the supply is insufficient.According to the data collacted from 543 farmers,314 needed the agricultural land mortgage loan products,but only 130 obtained the supply of agricultural land mortgage loan products from financial institutions.The continuous improvements of the relevant legal and policy environment,the continuous improvement of the rural financial service system and environment under the rapid development of rural economy promoted the development of rural financial market.However,the innovation of land mortgage loan products and models is still in its infancy,which is still subject to multiple constraints such as law,property rights and market.The supply market of rural land mortgage loan products still has more room for improvement.3.According to the perspective of demand factors,the level of land confirmation,land transfer and financial knowledge have a significant positive impact on Farmers’ demand for land mortgage loan products;financial knowledge of farmers plays an enhanced regulatory role in farmers’ demand for land mortgage loan products.But farmers’ land transfer does not have any impactt.This shows that with the implementation of land right confirmation and land transfer,the land contract relationship between farmers and collectives becomes clear.Land transfer promotes the activity of land market,and farmers with higher level of financial knowledge are more inclined to put land financing into production,which further promotes the innovation demand of land mortgage loan products.4.From the perspective of supply side factors,commonly,financial institutions are optimistic about the development of rural land financial market.However,at present,there are lots of problems,such as immature mortgage conditions of rural land property right,the high mortgage risk of rural property right,the incomplete relevant laws and regulations and market system,and the low supply willingness of financial institutions.The experimental results show that the perspective of market development and expected profits can positively affect the supply of rural land mortgage loan products from financial institutions;good land policy environment,mature rural land transfer mortgage market and clear rural land property right system further strengthen the financial collateral characteristics of rural land.Meanwhile,it also reduces the policy risk of financial institutions operating land mortgage loan products and reduces the loss of credit default,which have played a positive role in promoting the supply of rural land mortgage loan products.5.From the perspective of matching factors on supply and demand,On the hand of the demand,the low level of farmers’ culture and financial knowledge are the key factors that cause the dislocation of supply and demand of rural land mortgage loan products.Strengthening the relevant training and publicity to improve the level of farmers’ financial knowledge is one of the key factors to relax farmers’ credit constraints.Another hand of the supply,the mismatching between the interest rate of rural land mortgage loan products and the expected interest rate of farmers leads to the dislocation of supply and demand.Therefore,we should optimize the land mortgage loan products and reduce the financing cost of farmers.From the external environmental factors,the inadequate implementation of policies is an important factor affecting the dislocation of supply and demand of model rural land financial products.Currently,the development of rural land financial market is still mainly guided by policies,and the endogenous behavior of farmers’ lending is insufficient.Therefore,we should not only strengthen the policy support but also payattention to improving the spontaneity and endogenous power of farmers’ land financial lending.The novelty or marginal contribution of this paper lies in:1.It enriches the theory and content of the design of agricultural land mortgage loan products.This paper theoretically analyzes the mechanism of designing rural land financial contract from the confirmation of management right to the empowerment of mortgage security right.This work indicated that the rural land management right separated from the contracted management right of farmers complemented the property right conditions of the rural land tenancy market and enhanced the legality and security of the rural land financial contract through the "Separation of Three Rights" reform.Subseuqently,the activity and efficiency of village mortgage loan market are greatly improved.2.It makes up for the current fragmentary studies in the impact factors of supply and demand of rural land mortgage loan products.This paper placed the demand and supply factors of rural land mortgage loan products into one research framework and combined the questionaire related in the reactive motivation of farmers and organization with the background of “Separation of Three Rights” reform.Then systematically discussed these factors and provides a guidance for promoting the supply and demand of rural land mortgage loan products in China.3.This paper evaluated the effect mechanism of the rural land mortgage loan.It suggested that the demand for land mortgage loan products is regulated by the land confirmation and certification and financial knowledge level of farmers.Because of the possible interaction between the above two factors,it developed a model including the land confirmation and certification and financial knowledge level of farmers,and further analyzed the impact mechanism of core variables on farmers’ demand.