Research On The Rural Finance In The Process Of Agricultural Industrialization In Southern Area Of Hunan Province

Since the found of our new China, the rural areas have experienced changes from a collective "mess" to the time of distributing land to single rural family. Productivity has been greatly improved. After a period of time, people found that the way of independently production by a single farmer became the shackles of further development of rural areas. Reformation became an inevitable choice. The ultimate choice in some areas is the mode of "agricultural industrialization". The rural economy has been further developed though professional production and management. The mode of agricultural industrialization has been proved to be a more effective way. But the development of it in different regions is imbalance. The Southern area of Hunan Province is still in the initial stage of process of agricultural industrialization. Developing the industrialization of agriculture in The Southern Area of Hunan Province has its advantages: It is the neighbore of the economically developed Pearl River Delta areas, whice will provide a convenient market; but there are also negative factors: the underdevelopment of rural financial in this area fails to support the development of agricultural industrialization. In this context the article analysed how to promote agricultural industrialization and the development of rural finance at the same time, and forme positive interaction between the two.In my paper, firstly I raised the question, and then analysed the relationship between agricultural industrialization and rural financial combining of Marx's "Capital first impetus" theory and other theories and concluded that: the agricultural industrialization and rural finance is a kind of complement each other. In the third part, an analysis of supply and demand of the financial in The Southern Area of Huan province was given combining with development of agricultural industrialization, and then concluded that most of the financial needs were consumptive demand and productive demand was insufficient. On the supply side, the construction of L / R (the proportion of the volume of agricultural loans with the added value of the primary industry) reflected the supply did not reach the national average leval and that the level of supply was not commensurate with the development of primary industry; The supply of rural finance wre implemented by non-formal financial channels rather than formal finance, such of which was a structural problem. In the fourth part the reasons were analysed combining the status. The development level of the agricultural industrialization has led to low level of the income, which remained the financial needs at the level of consumptive demand, and demand can not be productive; the high cost for the financial system to get credit information in rural areas has led to the structural problems of finance supply. The imperfect system of agricultural insurance and lack the nature of co-operation of Rural Credit Cooperatives lead to a sufficicent financial supply. In the last two parts, suggestions are proposed to develop the industrialization of agriculture to stimulate the productive needs of finance conbining the experience of developed countries and activate the source of rural finance ,and to establish the cooperate-natured "agricultural association" as a financing platform for the development of agricultural insurance services to protect and expand the financial supply, and finally put forward in different ways to meet the different needs of rural finance. We may achieve the positive interaction between agricultural industrialization and rural finance and ultimately promote the rapid development of rural economy in Southern Area of Hunan Province through these means.