Resarch On The Financial Support To The Circulation Of Rural Land In Henan

Rural land circulation is conducive to resources flowing rationally, achieve land scale operation, andpromote rural labor transferring, facilitate urbanization and speed up the adjustment of agriculturalstructure so as laying the foundation for the development of secondary and tertiary industries. Presentlycirculation scale and speed of rural land have improved greatly; however, the new requirements onfinancial support on rural land circulation cannot be met by existing rural finance, the conflicts betweenfinancial supply and demand of rural land circulations is restricting the circulation process. And how tosolve the financial dilemma based on the background becomes major issue on facilitating rural landcirculation, scale operation and achieving rural modernization. Thus study on financial support on ruralland circulation in Henan is of great practical significance.Firstly, this Paper search the problem existing in financial support on rural land circulation byanalyzing current situation of financial demand and supply, the demand subject of the rural land circulationfinance varies at present, including professional farmers, farmers Cooperative Economic Organization,agricultural enterprise and land-lost farmers. Their demands on loan amount, new credit products andservice as well as policy-based agricultural insurance increase quickly, but there are insufficiency insupport on rural land circulation from financial institutions, financial products and services, policy-orientedagricultural insurance and government. Secondly, this Paper studies the reasons causing insufficientfinancial support on rural land circulation by empirical analysis on four facts, including financial institutionfinancial products and service policy-based agricultural and government support. Then it studies the creditbehavior between financial demand subject and banks as well as cooperation between demand subject ofagricultural insurance and insurance institution by theoretical analysis and game model, probes into the rootof insufficient support on rural land circulation of financial institution and insurance institution, andprovides theoretic foundation for enhancing financial support on rural land circulation. Finally, Based ondiscussion on the thoughts and principles of strengthen financial support on rural land circulation in Henan,the Paper proposes suggestions on financial support on rural land circulation as following: Enhancingsupport on financial institution for rural land circulation and optimizing the resources allocation among commercial finance, cooperative finance, policy-bases finance and new rural finance according to theprinciple of “incentive compatible”; Strengthening the innovation of financial product and service for ruralland circulation, so as to develop a series of applicable and targeted products and create the carrier andoperation conditions for finance servicing rural land circulation. By improving the development of thepolicy-based insurance, build one hedge barrier for scale operation of rural land circulation. Enhancingsupport from government, and create appropriate supporting environment for rural land circulation.