The Study On The Agricultural Industrialization Operation And Its Rural Financial Support System In Anhui Province

The dramatic tendency to advance agriculture that the agricultural industrialization operation spread from some areas to nationwide has showed its extensive adaptability and exuberant vitality. By the great effort of 20 years, the agricultural industrialization operation of Anhui Province has already obtained accomplishments that the implementation has exerted a positive role in the improvement of agricultural production efficiency, the increase of farmers'income, the rural economic development, the integration of urban and countryside and so on. But in general, the development level of agricultural industrialization in Anhui Province remains quite low on a nationwide scale, as well as comparing with 6 provinces of central area. The weak agricultural financial support system is one of the possible reasons. This year the "Central No.1 Document" called "To advance the coordination of urban and rural development and to establish a solid foundation for the agriculture development"-emphasizes the importance of agriculture. Rural financial system is a key point in the new rural construction. The vulnerability of agriculture requires external funds to boost agricultural industrialization operation. However, the main bodies of our province's rural financial system failed to take the responsibility, lead to the inadequacy of their functions to different degrees and hold back the progress of agricultural industrialization development.The thesis firstly employs the Unit Root Test, Co-Integration Analysis and Granger Causality Test to demonstrate a certain relationship between the development of agricultural industrialization and the increase on farmers'income, proving that is a must to advance agricultural industrialization operation. The study finds that per capita of fixed asset investment and output value per unit area are the main reasons for the increase of farmers'incomes, therefore, the financial support to agriculture can focus more on these two aspects. And also this paper bases on our province's data related agricultural industrialization operation from 1998 to 2008 and those data of 17 cities in 2008, adopts the combination methods of criterion and demonstration analysis, and qualitative and quantitative analysis, employs factor analysis and regression analysis to study on the relationship between agricultural industrialization development and financial support level. Finally, I reach a conclusion that Anhui Province is unable to afford sufficient financial funds to back up agricultural industrialization development that needs to be improved. In order to solve the financing problem in it, I propose some advices and suggestions based on the organization reform, system design, policy adjustment, function position and financial support of these finance departments.In order to establish a relatively perfect agricultural financial support system, firstly, we need to build a diversified financial support system. In this system, our government should promote the rural credit cooperatives (RCC) reform, making the RCC the mainstay of rural financial institution to back up agriculture, countryside and farmers. According to the recent agricultural development situation of Anhui Province, we ought to decide the operation localization of RCC, facilitate organization innovation through incentive mechanism continuously and create a well-designed operating environment for the advancement of agricultural industrialization by credits and tax revenue leverage. As for policy banks, they are able to work in financing and investing aspects gradually by guarantee mortgage and non-guaranteed mortgage mechanism. Commercial banks should implement limited commercialization reform. Secondly, to properly treat and deal with the relationship between Rural Non-formal Finance and Regular Finance is very important to realize the goal to better serve for agriculture, villages and farmers. In addition, relatively well-developed agricultural corporations can consider capital market to broaden financing and investing channel. Finally, the government ought to improve agricultural insurance system and legislation on finance field and realize normalization of financial support to agriculture by legal method.