Financing Patterns And Operating Mechanism Of Farmers, Professional Cooperative In Shaanxi Province

In the conditions of China’s accession to the WTO and the proceeding of the reform andopening up, due to the demand for agriculture and rural economic restructuring, the need offarmers’ organization innovation relatively increases along with the increasing radiation anddemonstration effect of farmers specialized cooperative organizations and farmers’specialized cooperative economic organizations across the nation have been vigorouslydeveloping. In recent years, Shaanxi farmers’ professional cooperatives have also developedconsiderably. Not only the number, but the scale of them have been increasing while the rateand the coverage area of expanding has shown to be accelerating. The scale of Shaanxi farmerspecialized cooperative is comparatively small for the lack of economic entities and effectivegovernment financing support and the unperfected rural financial system and for the singlecooperatives financing channel with high costs, which due to the lack of funds and otherissues. These problems, in the essence, professional farmers cooperatives in the process ofrunning lack effective financing models as the lack of funds limits the expansion ofcooperatives function, which is not conducive to the expansion and development of farmers’professional cooperatives further.Based on the theory of cooperative financing, we got the field data in the Guanzhongarea to research on financing mode and operation mechanism of Shaanxi farmers’ professionalcooperatives. First of all, the theoretical basis of professional farmers cooperatives financingthrough the introduction of Shaanxi Province, includes farmers ’cooperative economic theory,farmers professional cooperatives finance theory etc.; Second, extensive research has beendone to understand the situation of the Shaanxi farmer specialized cooperatives financingmode, to grasp the overall financing of Shaanxi Province farmers’ professional cooperatives,to analyze the performance of the current financing difficulties, and to reveal difficulties infarmers ’professional cooperatives financing through analysis of the factors resulting inShaanxi Province. the internal mechanism of financing to clarify farmers’ professionalcooperatives, revealed that in the current system under the framework of Shaanxi Province,farmers ’professional cooperatives difficulties in financing deep-based reasons; once again draws extensively on the successful experience of professional farmers cooperatives in easternfinancing model based on combination of eastern and central regions of farmers’ professionalcooperatives financing model of innovation practice, in accordance with the farmers inShaanxi Province professional cooperatives initiated organizer type and level of developmentof the two ideas put forward different modes of financing and operational mechanism forselection. Finally, suggestions on how to enhance the financing level and to broaden thechannels of farmers ’professional cooperatives in Shaanxi Province have been made from thelocal governments, commercial banks, rural financial institutions cooperatives and otheraspects.The conclusions of the research are as followed:(1)Study found that professional farmerscooperatives as a new organization of production in rural areas, in the development process,there is a huge funding gap,54.7%of the cooperatives that the current facilities can not meetthe needs of cooperatives, lack of funds has become a constraining farmers bottleneck in thedevelopment of professional cooperatives.(2)Cooperatives, profit margins, fixed assets,operating life, the demonstration level, the financial system, financial officers, the president ofeducation, the president work experience, reputation of the president, the balance sheetaccounts, government policy support factors on farmers’ professional cooperatives have theability to obtain credit significant impact, high profit margins of cooperatives, the large size ofthe fixed assets, long operating life, high level of demonstration, improve the financial system,financial professional, president of high levels of education, work experience is moreabundant, closely linked with the bank and government policy support credit cooperatives isrelatively high.(3)Learning from the successful experience in the eastern part of farmers’professional cooperatives financing model, different types of organizations,on one hand, themode should be initiated in accordance with the professional farmers cooperatives, mutualsyndicated loan proposed tripartite agreement+unified account+subsidized insurance ", andfarmers cooperatives funds union model, government-led equity credit model, the formationinitiated by both farmers with large farms and the ordinary farmers, and professional farmerscooperatives selection as well; On the other hand,to take a different financing measures andto build a different financing model are established in accordance with the profitability of thecooperatives, intangible assets, financial management, president, silver community relations,external environment,. Overall, the financing strategy should be taken as supporting thedevelopment of a number of cooperation groups and fostering a number of innovativeorganizations. The financing modes should be founded on the basis of the reality of thedevelopment of farmer cooperatives the first financial institutions is to provide credit supportto cooperatives, which is referred to as "cooperatives straight-prime mode; the second is credit cooperatives support "objects" mode; and the last one is to establish financial institutions withthe assistance from the cooperatives directly, which is referred as "cooperative+farmer"mode.