Financing Problems Of Farmers Under The Agricultural Industry Chain Perspective

Farmers are important subjects in the national economy, are the direct primary industrypractitioners, are the provider of the primary agricultural products; farmers’ economic behavior aremajor determinant of the first industry development status and level of supply of agricultural products.As economic entities, the farmers of our country are in large number but scattered spread with smallbut complete operating scale; as practitioners of primary industry, farmers are average at the low levelof education and management. At the same time, based on the characteristics of agriculturalproduction, and partly due to some of the factors in the design of the system, there are naturaldisadvantages while farmers enjoying policy support and using external resources, one very importantaspect is it is difficult to obtain the necessary and legitimate financial support in the process ofproduction. So, how to improve production conditions and to promote the level of industrialdevelopment, and to improve the quality of life of farmers, are the essential foundation of an economyfor running smoothly. This is a task that the national must face up for the advancement of thecomprehensive national strength.This paper studies the main factors that affect farmers financing，emphatically analyze theinfluence of the industrialization of agriculture to farmers financing problems and the direction ofinfluence. Through the theoretical analysis and empirical analysis with the combination of researchmethods, this paper learns and absorbs a large number of research by experts and scholars at homeand abroad extensively about the financing of households and the industrialization of agriculture, andbased on field survey data obtained form495families, combining the macroeconomic data of theState Statistical Yearbook and China Financial Yearbook, this paper carries on research about presentsituation and problems of farmers financing from both macro and micro aspects, and on this basis, amathematical model is built to study the impact factors of farmers financing, combines with thefarmers finance experience of both developed countries and developing countries, this paper proposessuitable recommendations for China’s situation.This paper is divided into six chapters. The first chapter combines with the theory ofindustrialization of agriculture, supply chain financing and farmers financing, this paper identifies themeeting point of industrialization of agriculture and farmers finance and propose research purpose,meaning and ideas; Chapter two learns from existing theoretical basis, summarizes a brief review ofthe theory used in this article; Chapter three draw a general description of the financing situation ofthe farmers in the whole country, in particular present problems; Chapter four describes the issue offarmers financing and build a mathematical model based on the data obtained by495copies of thesurvey, verifies that the industrialization of agriculture has an impact on farmers financing problemsand confirms the direction and the way of the effect. Finally, Chapter five summarizes successfulexperience of other countries, and the last chapter forms the policy suggestions based on the summaryof recommendations. Through research and analysis, we may draw three conclusions: firstly, agricultural industrialization plays a significant impact on farmers financing problem, and thedirection of influence is positive. Moreover, age, cultural level, income, content management andother related factors all have impact on farmers financing problem. Secondly, in China, agriculturalindustrialization has a certain development, but the development level still cannot meet therequirements, financial support for the role of industry needs to be deepen. Thirdly, a large share offarmers loan demand are still unable to satisfy, the rural financial market supply gap still exists, so weneed to expand the financing channels further, to achieve multi-channel multimode financing.Combined with research conclusion in this paper, the policy suggestions are as follow: firstly, perfectthe policy finance financing; secondly, vigorously develop rural cooperative finance; thirdly,strengthen the agricultural industrialization; and in the fourth, develop farmers financing channels andexplore the farmland financial system.