The Supporting Of Government In The Finance Of The Farmers Professional Cooperative

In order to adopt a more prompt strategic approach for the development of 'The Central Planins Economic Zone', Henan Provincial People's Government announced a scientific development pathway which would realize new urbanization, new industrialization, and new agriculture modernization, without sacrificing food output, agriculture production, and ecological environment. To take this pathway properly, new urbanization needs to be the guidance, new industrialization needs to be the dominance, and new agriculture modernization needs to be the foundation.'New Agriculture Modernization' is defined as following:preconditioned by high quality and high quantity food output, the transformation of the existing agriculture system through modernized infrastructure, mechanical equipment, service system, scientific technologies and farmer organization to become highly streamlined, standardized, organized, industrialized as well as being approved green safe. According to the definition, the Farmers Cooperative could best assist the development of 'New Agriculture Modernization', it is a great approach and deserve widely supports and promotions. the Farmers Cooperative would organize farms, who used to operate independently and remotely, to protect themselves against natural disasters and market risks and to overcome their disadvantaged position during market competitions.Farms inherit many weaknesses in nature through the agriculture industry itself, so does the Farms Cooperative. They have to withstand higher risks from both nature and the market than other industries. Dedicated government support is the prerequisite to the Farms Cooperative's development.The Farms Cooperative an economical organization where farms to gain mutual assistance by adopting the principles of 'created by the people, managed by the people, and for the people'. In some sense, the Farms Cooperative is the third force to compensate the vacuums between the government and the market. Comparing with other enterprises, the Farms Cooperative is more closely associated with the government, and yet it is operated and managed independently from the government.Under this circumstance, the government plays the role of 'help' and 'guide' to assist the Farms Cooperative. What the government should do is to create a set of financial regulations, financial modes as well as financial environment, to gather supports and concerns for the Farms Cooperative from the entire society through the means of regulation and macro-economic adjustment, so the Farms Cooperative could avoid its natural weaknesses and compete better in the market.Moreover, the No.32 Document for the National Development and Reform Committee'the State Council Guidance Opinion on Supporting Henan Province to Accelerate the Development of the Central Plains Economic Zone' also mentioned 'Examine the possibility to establish Rural Financial Reform Area, launch new trial of Rural Finance Comprehensive Reform', which requires Henan province to take the first step in Rural Finance Reform.