A Study On Financing Credit Of The Farmers Based On Farmers Specialised Cooperative Organization Mode

Credit plays a great role in promoting economic growth, but the poor credit level has become a very serious problem in the development process of China's economic in the present stage. In rural areas, the imbalance between supply and demand of farmers financing credit outstands, which leads to the financing dilemma. So the financing credit in the farmers specialised cooperative organization mode based on group communication network was studied in this paper. The paper holded that the farmers specialised cooperative organization could be used as farmers external and internal financing carrier to enhance the farmers financing credit by using the advantages of it.The subject of the paper can be divided into three parts. Firstly, the connotation of credit,the present situation of Luochuan fruit grower capital loan and the reason of falling into financing dilemma were discussed. On this basis the feasibility of establishing farmers specialised cooperative organization in the Luochuan apple producing areas was analyzed. The conclusion that the farmers specialised cooperative organization had the economic foundation and system guarantee as financing carrier.Secondly, that developing the co-guarantee loan in farmers specialised cooperative organization mode can enhance the farmers external financing credit was discussed. The co-guarantee loan was introduced into farmers specialised cooperative organization mode to overcome the inherent defects of co-guarantee loan. The model not only made the establishment of co-guarantee group and the performance of repayment obligations of members easier, but also strengthened the interests correlation and mutual supervision among the members. The further analysis based on the research of group communication network indicated that the effective implementation of social punishment and existence of implicit guarantee in farmers specialised cooperative organization mode which could promote the smooth progress of credit activities and urge the promotion of farmers external financing were beneficial for the promoting of co-guarantee loan repayment rate.Finally, that developing the cooperative finance in farmers specialised cooperative organization mode can enhance the farmers internal financing credit was discussed. This innovation of loan mode with stronger endogenous and stringent credit screening and punishment mechanism conformed to the principles of small-scale model cooperation and reduced moral hazard and transaction costs. The analysis based on all channels of group communication networks showed that conformity behavior induced more stringent loan behavior criterion, the increase of potential non-compliance costs caused by rapider communication of information, reducing the capital outflow in closed system and financial cooperation efficiency improved by cohesion enhancing can ensure the smooth progress of farmers internal financing activities and improve the farmers credit level.As can be seen from the study, we can use the existing organization resources to make the innovation of load model, which could directly or indirectly enhance the farmers financing credit and solve farmers financing problems and ensure rapid development of rural economy.