A Study On Financial Support Of Agricultural Structural Adjustment

The Chinese economy has developed at a fast pace and obtained remarkable resultsince the opening and reform policy, but there is still an urgent need to conductadjustment and update for the industrial structure because extensive industrial modeshinder further economic progress. The situation seems to be more severe in China, aleading agricultural nation, whose agriculture and agricultural products processingindustry fall behind from other countries, so the improper agricultural structure acts asa development bottle neck for agricultural developmental changes and they play animportant role in economic stability. Among all the adjustments of industrial structure,financial support occupies the most significant part, and there is a close line betweenfinancial support and progresses of industrial structure adjustments. It can be showedfrom the development experience of home and abroad that an effective combination offinance, policy and industrial structure adjustment is the most practical means;therefore, researches on financial support for the adjustment of industrial structure arenot only advantageous to promoting industrial structure adjustment and update andproviding experience and direction, but also conductive to deepening andimplementing t of our financial system.Using the factor endowment theory、the theory of comparative advantage andRural Finance Theory analyzes the function mechanism for finance to industrialadjustment of agriculture, processes and practical modes. Besides, Wuming County inGuangxi, for example, specific to the cassava industry as the dominant of the Wumingthe agricultural structure adjustment, to introduce the present situation and effects, andthe latter pinpoints the main problems and advances related policy suggestions on thisissue. The second part is to construct the theoretical framework of this articlesummarizes the theoretical basis of the financial role of the industrial structureadjustment, the motivation and general law for the agricultural structureadjustment,explained the basic connotation of the agricultural structure adjustment offinancial support, citing the financial structure of the theory, financial deepening of thetheory and financial innovation theory, only reasonable financial structure to adapt tothe adjustment of industrial structure, the government relaxation of financial control,financial deepening, liberalization can continue to stimulate the vitality of the financialsupport, and then on the financial-related services and tools to innovate, constantly improve and perfect the financial system in order to promote the continuousdevelopment of the economy. The third part explores the mechanisms and modes offinancial support in the adjustment of industrial structure. The adjusted industrialstructure is beneficial to deepening and implementing the financial system. Thefinancial mode can be divided into three modes, namely market-dominating、 bank-essential and market-based bank-oriented. The fourth section describes the status ofGuangxi Agricultural and industrial restructuring, the adjustment from Guangxiagricultural industry analysis, adjust the structure of agriculture to the economic cropsand bioenergy crops, which lists the cassava industry development for Wu MingIndustry in the structure of the leading industry as a typical representative. The fifthpart points out some problems from the government, financial institutions andinsurance aspects, including insufficient financial support from the government,unsound credit system, difficulty of financing from capital market directly because theunmatched speed between the adjustment of financial policy and development as wellas the lack of special insurance. The sixth part advances some policy advices to perfectthe financial support in the adjustment of industrial structure of agriculture. The endingpart of the article gives a conclusion of the main content of the paper and stresses thesignificance of appropriate financial support in the road of industrial structureadjustment of agriculture.