Henan Agricultural Loans Influence On Family Business Net Income Of Farmers Research

Henan province is China’s important agricultural big provivce,mostly is farmers,〝three rural〞issues is important, the key is to solve the〝three rural〞problems ofincreasing farmers’ income,agricultural loans is one of the important production factorsaffect farmers’income.In this paper,through the description of Henan rural financial marketdevelopment present situation,analyze the supply and demand of rural financialmarket,found that the rural financial market system is not sound,farmers not effectivelymeet the demand of funds,a large number of saving funds outflow from the rural financialmarke,the rural credit cooperatives support agriculture process have many problems,thepower of the new rural financial situations support agriculture’development is small,and soon,those problems severely restricts the increase of farmers’income and the rural economicdevelopment. Although the farmers’ net income is constantly increasing, but the incomegap between urban and rural areas is constantly expangding, at the same time, operatingincome of the rural increase fell,and contribution to the per captia net income is falling.Family business income is the main source of farmers’ income, promote the increase of thefamily business income, to improve farmers’ living and consumption standanrd issignificance.This study is using the relevant data from1985to2012in Henan province, using acombination of theoretical analysis and empirical analysis,demonstrates the agriculturalloans positive impact on the operational income of the rural households by using the VARmodel.as a result of the existence of many problems in rural financial market,making thecontribution rate of agricultural loans to family business income is low. According to theresult of empirical test and the situation of the present agricultural loan market put forwardthe corresponding policy recommendations, we should build the rural financial marketcompetition environment, continue to deepen reform of rural credit cooperatives andperfect the compensation mechanism for agricultural credit,for the government to solve theproblem that the farmers loan difficultly, increase farmers’ income and promote the overalleconomic strength of Henan provide powerful basis.