Research On The Farmer Loan Problem In Baise City

China is an agricultural country. Its rural economy lags behind and its agricult-ural productivity is low. Still, there is serious difference in rural andurban areas.Though China’s financial department has constantly increased the capital investment in the issues of agriculture, farmer and rural ares,such force is still not enough in respect of changing the overall rural appearance.Without the support of rural finance, the development of rural economy, the increase of farmers’ income and the adjustment of rural industrial structure cannot be realized. In recent years, with the reform and listing of banks, branches in rural areas are shrinking on and on, so mass fundflows into cities continuously and the support for rural areas is weakened. Farmers reflect generally that financing is hard and expensive.The problem of insufficient rural credit fund restricts the sustainable development of rural economy directly. It not only goes against the increasing of rural income, but also lead to the further expansion of urban-rural income gap. Difficult loan for farmer has become a key problem which has effect on agriculture, farmer and rural areas. Baise City is one of the14concentrated destitute areas in China, so poverty relief and development is the most important work of Baise government. To promote finance against poverty vigorously can accelerate destitute areas’ step in poverty relief.The paper makes use of data gained in field investigation. It adopts normativedescriptive statistics and quantitative analysis and studies the characteristics of Baisefarmers’ credit demand and the influencing factors, as well as the reasons why the farmers are restricted by formal credit. It tries to analyze the reasons for the creditrestriction on farmers in poor areas and how to ease it,so as to offer necessary empirical evidence for the construction of farmer credit system.