Research On The Financing Ecosystem Of Peasant Households Based On Economic Organization Involving Agriculture

From 1996, our country promotes the rural financial system reform, implementing many financial policies, which make the rural credit cooperatives and postal savings bank the only regular financial institutions in the rural financial markets, and farmers who faced with financing shortage the urgent demander in rural financial environment. Farmers'financing demand can't be satisfied from regular financing channels, so they turn to the financing ecosystem of peasant households for help.Establishing effective financing ecosystem of peasant households has great significance in raising credit level of peasant households; studying on financing ecosystem of peasant households provides theoretical basis for government in financial reform and financial innovation, and assisting agricultural individual economy and agricultural related small businesses; researching on financing ecosystem of peasant households helps to promote agricultural industrialization, agricultural modernization and rural urbanization. Financing ecosystem of peasant households is close to the countryside, provides a large number of jobs to surplus rural labors.The article aims at establishing effective financing ecosystem of peasant households, analyzing the effects of agriculture related economic organizations in solving peasant households'financing problem. Meanwhile, the article attempts to make innovations on risk rating method for rural financial institutions. Based on research experience and theoretical analysis, the article gives some recommendations on optimizing the financing ecosystem of peasant households.This article consists of introduction and 6 chapters.Chapter1, Introduction.Firstly, it elaborates the research background, significance and purpose of selecting this topic. Secondly, it comprehensively and objectively outlines and assesses the trends of relative theories domestic and abroad. At last, it outlines the thinking, methods and innovation of this article.Chapter2, the Constitution of Financing Ecosystem of Peasant Households. Firstly, it gives a brief introduction on ecosystem. Secondly, it established the financing ecosystem of peasant households, elaborates the conception, constitution and the relationship between each ingredient. At last, it points out one problem that existing in the financing system—the imbalance between the supply and demand of money. It also gives the theoretical reason of the imbalance, which lays the groundwork for the rest of the article.Chapter3, the Main Parts of Financing Ecosystem of Peasant Households.Firstly, this chapter analyzes the features of capital demand of peasant households who are the most basic economic entities and most direct joiner of Chinese rural economy. Secondly, it elaborates the financing modes of peasant households—regular and irregular financing channels for financing. By comparing the two channels of financing, we can see that the irregular financing channel is the primary one. Finally, it elaborates the problem existing in the game between independent farmers and rural financial institutions-- adverse selection and moral hazard.Chapter4, the Environment of Financing Ecosystem of Peasant Households.This chapter outlines the conception of agriculture related economic organizations; illustrate the regular and irregular financial channels based on agriculture related economic organization; uses the partner selection theory to analyze that agriculture related economic organization can help to identify the risky peasant households, solve the problem of adverse selection and moral hazard. Finally, it come to the conclusion that agriculture related economic organization plays an important role in solving adverse selection of peasant households and moral hazard of rural financial institutions.Chapter5, the Risk Rating Method Based on Agriculture Related Economic Organization.There are many factors influencing the stability of financing ecosystem of peasant households, one purpose of this chapter is to getting the main factors. The main factors are the controlled variables of the financing ecosystem. We can get the stable area of financing ecosystem of peasant households by setting the thresholds of controlled variables. At last, it designed the process of rating the loan risk of peasant households for rural financial institutions.Chapter6, Optimization of Financing Ecosystem of Peasant Households.This chapter gives some advice on optimizing the financing ecosystem of peasant households from the aspects of agriculture related SMEs, government, agriculture related economic organizations, legislation and integrity regulators.Chapter7, Review and Outlook.Summarize the whole article, points out the limitation of the study and the future efforts that are needed.