Study On The Financial Needs Of Farmland From The Perspective Of Regional Difference

The farmland finance, refers to that in order to get loans from financial institutions, the agricultural land operators mortgage the agriculture land management rights as the credit guarantee. The farmland financial system originate from the western countries, due to its private land ownership, that makes the land property rights clear and its mature financial market, the organization and operation mechanism of farmland financial system have been very perfect. With the acceleration of farmland circulation, the deepening of farmland reform and financial reform, the pilots of constructing farmland financial system in our country are in succession. The construction of farmland financial system relies on the perfect farmland appraisal system, a high rural social security level, positive rural financial institutions, the innovation of farmland mortgage legal system and other supporting systems. Because of the imbalance of regional economic development in China, there is a big gap among the level of regional economic developments, the structure of financial market, the degree of monetization and marketization. The farmers’demand for farmland financial system and the willingness of rural financial institutions to participate in the farmland financial system, are influenced by the differences of regional economic and financial developments. Therefore, the establishment of farmland financial system should consider the factor of regional differentiation.This article studies the demand side of farmland financial system from the perspective of regional differences, selects Nanjing and Handan as the research object, using the field research method to analyze the rural financial institutions’and the demand side’s cognition, and their willingness. Based on this, this article puts forward the policy recommendations for the regional difference.According to the research, on the rural financial institutions, the supply willingness of the mortgage of contracted land is the highest both in Nanjing and Handan. But due to the differences of economic and financial development environment, the supply willingness of rural financial institutions in Nanjing for land ownership is over the mortgage of homestead. But the supply willingness of rural financial institutions in Handan for homestead is over the mortgage of land ownership. For the two regions, the restriction of laws and regulations is the main obstacle to carry out the farmland financial business.Also the evaluation of farmland mortgage rights and the collateral disposal problems after farmers default, are important concerns of the rural financial institutions. On the demand side, although there’re some regional differences in the income levels and cash-rich degrees, on the whole, due to the narrow borrowing channels, high loan requirements of rural financial institutions, and other reasons, the willingness of farmers to participate in the farmland financial system is strong in Nanjing and Handan. By using the econometric model, this article concludes that, the common factors that affect the farmers in both areas to participate in the farmland financial system are:the sources of family income, the family’s farmland management scale, whether there is a shortage of funds, the gap size, and whether they want to get loans. But the gender of the head of the household, the cognition to the lending channels, and the ability to bear the risk of losing farmlands, are significant factors that affect the farmers’willingness in Nanjing to participate in the farmland financial system, and in HanDan the factor of family’s income level if significant.The results show that, as the supply side, the products that the rural financial institutions want to provide affects the willingness of the farmers. According to the financial environment’s difference and the rural financial institutions’willingness, there’s a certain imbalance between the supply and demand sides in the two areas. The farmers’ willingness for the farmland financial business is strong. But the supply willingness of the rural financial institutions is weak, for the consideration of the restriction of relevant laws and regulations, and the subsequent processing problems. Therefore, this article put forward the targeted policy suggestions from the supply and demand side separately. To improve the farmers’willingness to participate in the farmland financial system, we have to perfect the system environment. For the concerns of the supply side, this article put forward the supporting policies, including the government’s policy supports, perfecting the farmland financial operating supporting policies and measures, differentiated farmland financial products’innovation. For the concerns of the demand side, this article put forward the supporting policies, including perfecting the rural social security system, establishing the agricultural insurance system.