Research On The Effective Supply Of Rural Finance To Supporting Agricultural Department In Heilongjiang Province

The government work report in 2007 suggested that the construction of modern agriculture is the important foundation and the primary task for building of new socialist countryside. The development of modern agriculture is a huge systematic project that must have a comprehensive, multi-level system of financial support as a basis. Since reform and opening up, agricultural economy has been growing rapidly in Heilongjiang Province. However, due to weak agricultural foundation, poor self-accumulation for farmers and lack of financial support, agricultural production enterprises and farmers are facing shortage of capital investment. Therefore, it is important to establish the rational and effective rural financial supply system to promote rural economic development. At present, the rural financial development has some problems such as imbalances in the allocation of financial resources between urban and rural areas, imperfect rural financial system, and incomplete function to financial institutions. In this case, it is the significant impact to promote the harmonious development of economy and society that accelerate reform and innovation of rural financial system and constantly improve the rural financial service system.This paper based on the rural financial development theory, analyze the characteristics and the status quo of financial needs supply in rural area in Heilongjiang Province. The article has done a further analysis in theory and practice to the problems of rural financial supply situation. The analysis found the issues that the function of rural financial institutions are not clear and function of rural financial services are weakened.Specific performance is capital flow from countryside to city and large gap between urban and rural areas. Financial services in rural areas can not adapt the rural economic development. We propose the financial effective supply countermeasures on supporting agricultural development through analyzing the financial system of the United States, Japan and India and drawing on existing research results. The countermeasures include creating the structure of multi-level, wide coverage, sustainable rural financial system, actively promoting rural financial innovation, strengthening the policy support, making good communication and coordination and building incentive and effective long-term support mechanisms.