Study On Financial Support Of The Agricultural Industrialization In Gansu Province

Since 1993, the implementation of agricultural industrialization in Gansu province has exerted a positive impetus on speeding up the rural economic development of the whole province, besides, it advances the integration of city and countryside, and increasing the farmer's incomes as well as promoting new socialist countryside construction of the whole province. However, comparing to the average level of the country, the development lever of agricultural industrialization in Gansu province is still quite slow. One of reasons is that the rural financial system is not consistent in the demand of agricultural industrialization in Gansu province. The agricultural industry financing is difficult and the shortage of funds is prominent. In order to solve this problem practically, this paper puts forward a new way to solve the problem of rural financial development adapting to the demand of the agricultural industrialization in Gansu province on the basis of theory studying and demonstration analysis.By adopting combination method of criterion analysis and demonstration analysis, and the qualitative analysis and the quantitative analysis, according to building " the gap model of agricultural capital formation " and "the multiplier effect model of rural finance ",it concludes the relationship between the rural finance and the agriculture growth as well as the support effect of the rural finance in promoting the agricultural industry development.According to demonstration research in Gansu province from 1993 to 2004, it discovers the average annual financial expenditure on agriculture accounts for 12.04% of the annual total financial expenditure of Gansu province, it is only 2.04% higher than the developing country, for example Indian. Among the northwest five provinces (Shanxi, Xinjiang, Qinghai, Ningxia, Gansu), the annual financial expenditure on agriculture of Gansu Province is also low. The financial investment on agricultural industry is limited by the farmer's slowly increasing income, the lower living expenditure accounting for the gross expenditure and the weaker ability in accumulating funds for agricultural enterprises themselves. Therefore, it is necessary for the agricultural industry in Gansu province to obtain financial support from the rural financial system in order to solve its fund shortage.The main reason causing the financing difficulty of agricultural industry is that the rural financial system of Gansu province is imperfect .The function of the rural policy finance is unitary, and its business scope declining day by day, besides, its management is to the bad and its support ability to the agricultural industry has weakened. The core management strategy of the Agricultural Bank of China has shifted and its service function to the agricultural industry...