Yantai City Farmers' Professional Cooperatives Internal Financing Problem

The problem of "agriculture, countryside and farmers" in China has aroused wide attention, and how to solve this problem is becoming more and more important to the government. Since the reform and opening up, China had the household contract responsibility system, and changed the methods of product from collective labor and on average to a household labor and independent business mode of production, which aroused the enthusiasm of farmers. However, the production and operation modes had their defects, and the family's "small peasant economy" is thin, so they cannot not only achieve scale operation and form scale effect, but also go against with other economic entities in the market economy as a independent economic agent, let alone to connect with international market. To solve the problem of "agriculture, countryside and farmers" in China, we must explore new method which is special for Chinese national conditions, and it will be a beneficial exploration to organized the peasant and established farmer cooperative organizations. There are so many types of farmer cooperative organizations. This paper takes Yantai farmers' specialized cooperative organizations as the research object, and takes some methods by researching literature documents, case investigation and empirical analysis. It gives the connotation, characteristics, types and operation mode of the farmers' specialized cooperative organizations and analysis of the internal financing problem in Yantai farmers'specialized cooperative organizations, analyzing the system essence of the problem combined with case, thus putting forward the corresponding countermeasures.At first, this article defined the basic concepts and features of farmers' professional co-operatives, and then described the basic theory of their internal financing, including the farmers' concepts, characteristics of professional co-operatives internal financing and the difference with corporation financing, then with the financing theory, gave the basic theory of the farmers' professional co-operatives'internal financing. With theoretical analysis, the article analyzed the status internal financing of Yantai farmers' professional co-operatives. Here, I chosen Green Health Fruit Professional Cooperative, Xian Tan Poultry Professional Cooperative and Guang Lian fruits and vegetable specialized cooperative as examples to do some research, then got the assessment about the effect of internal financing in Yantai farmers'professional co-operatives。Results showed that while the internal financing can drive development of Yantai farmers' professional co-operatives in a certain extent, there are still many restrictions, including the narrow internal financing channel, the limitation of residual income accumulation, etc. Based on the analysis of the current situation, this paper found many internal financing restraints of Yantai farmers' professional co-operatives. Based on case analysis, I got the system restraints in internal financing of Yantai farmers' professional co-operatives, including internal and external system restrictions. Internal system restrictions including strict limits qualifications and the freedom of qualified member-system, inalienable public accumulation rights system and limited capital remuneration distributed system, etc. External restrictions include time lags of government laws, shortage of policy support and funding, etc. Based on the above analysis, this paper gave some relevant suggestions about improving the internal financing system of farmers' professional co-operatives, including the qualification of public accumulation, established the member's drop-off constraint mechanism and put forward the optimal policy suggestions on external support environment of farmers' professional co-operatives.In the research, this paper uses the method of case study and the individual interview to do the research, investigating some specific professional cooperation organization, discussing with the organization's head and relevant persons to collect first-hand information for a new theoretical analysis and policies. While, based on the farmers'professional co-operatives essential characteristics, this paper analyses the internal financing mechanism and related theory, and analyses the internal financing mechanism, finding problems which exist in farmers'professional co-operatives operation mechanism and providing the corresponding theory countermeasures for government to refer to.