Relationship Between Poor Farmer And Rural Credit Cooperative Based On Trust

Since early 90, 20th century, China began to practice the micro-credit, it has been drawing on international experience in the development of micro-credit. In the past two decades, micro-credit development has past three courses, include learning from the individual technical and aspect of the system to try to learn from lessons for China's development process. In 1994, micro-credit kicked off in China; in 1999, rural credit cooperatives started the pilot of micro-credit in China. In 2001, the management guidance of rural credit cooperatives micro-credit for small farmers" has promulgated. That marked the entry of rural credit cooperatives in rural areas as the main micro-credit market. Three rural issues which has plagued China's rural economic development is an important problem. To solve the three problems, the main way is to increase farmers income; to increase the farmers income and change it's status of poverty and backwardness, we need fund. The microcredit of rural credit cooperatives provide a good source of funding channels to change the economic status of rural, it is very significant for farmers. Shaanxi Province as one of the important agricultural area in China, we study the financing situation of Shaanxi Province's farmers and promote the three rural issue resolved, has important significance for the solution of three rural issue.Small credit loan for farmer (abbreviate as micro-credit) is issued for farmers by the rural credit cooperatives (RCC for short), it is based on the household credit, in the approved amount and duration of payments to farmers without collateral and guarantee loans. In the microcredit, the RCC and farmers are major players, farmers as the need one who was in a relatively weak position and relative poverty, the farmers of this research will be referred to as poor famers. In the three segments of demand, supply and reimbursement of microcredit, the game relationship is developed between poor farmers and rural credit cooperatives. Given the importance of microcredit and its characteristics of reputation-based farmers, it has very important significance to study the financing relationship between poor farmers and RCC, to study the financing situation of farmers, to find the behavioral characteristics of household finance, law of demand and constraints, to understand the actual situation of social lending and the trust mechanism of the formal rural finance (microfinance), to get the message of the impact factors of trust.In this thesis, key concepts involving trust, poor farmers, the informal financing and micro-credit are defined. Based on the basic game theory and the basic model, game relationship between poor farmers and RCC in the condition of incomplete information and trust is analyzed. And obtained the conclusions, the higher mutual trust degree between the farmers and RCC, the more success of microcredit, and the game equilibrium conditions of facilitate completion is confidence. Then we assumed the conditions to promote trust.①f armers are willing to repay and ability to repay on time;②Rural Credit Cooperatives will lending to the willing and trustworthy vulnerable farmers certainly;③sound legal system;④ethical standards of rural households (such as guilt and high) is well. This thesis analyze contrastly the poor farmers'financing and supplying situation of RCC between Qianyang County and Zhouzhi County of Shaanxi Province. Because Qianyang County has the better trust situation, the implement information is better than Zhouzhi County. We verify the game analysis under different conditions and the confidence for the important role of trust in micro-credit. Next, this thesis use the SPSS16.0 statistical software to analyze the influence actors of trust between poor farmers and RCC, design the indicators of trust in 16 variables such as education level, area of agricultural land, farming year, total family income, savings ratio and so on, call their statistical analysis of the data in a simplified functional block factor analysis, integrate the number of original variables integrated into several module variables, obtained the five synthetic affecting factors of trust as follows, trust others factor, personal characteristics factor, family situation factor, agriculture condition factor and the negative situation factor. Finally, this thesis summarized the entire contents and raised the policy recommendations on the point view of the government, poor farmers and RCC level.