Credit Cooperatives Microfinance For Impact Analysis Of Farmers' Income

Rural area is one component of the Dual economic structure, and farmer’s number is very large in the general population in our country. Especially in the northwest, not only farmers’ income level is lower than the eastern region, but also there is very big disparity between farmer’s incomes. Northwest region’s economy will restrict the pace of our country economy. With rural finance can not effectively met the demand of capital that will restrict rising peasant household’s income level and narrowing the income gap. Therefore, to construct the financial system that fitting the rural characteristics is the key to solve the farming problem.In our country, northwest’s economy is in primary stage, industrialization and urbanization is still initial, then financial cooperation is the trend of financial development. Rural credit cooperatives as a financial agency that having many branches and being the only one that having direct dealings with economic organizations,has a living space in the rural financial development in rural areas,especially in the northwest region. Micro—credit that established on the basis of credit grade, through a series of technology that overcoming information asymmetry and reducing the transaction cost, expanded loan object to the poor peasant household, then provides funds access to the groups that be excluded by other financial institutions. Therefore, its important to study the influence of Micro—credit to peasant household’s income that credit cooperative provided in the northwest in our country.Based on the summary about Micro—credit research,Firstly, this paper begin with basis theory and political economics analysis, analyze the theory about Micro—credit.Secondly,discuss its income effort form three aspects:security mechanism, impact’s carrier and route.and study its different effect to all farmers and those who in the distinct income situation from the empirical research perspective, then put forward policy recommendations that how to developing Micro—credit effect to increase income especially low income peasant households.