Research On The Credit Financing Of Farmers’ Professional Cooperatives

Farmers’ professional co-operatives is a new type of market economy adapts to thedevelopment trend of agricultural produce. Although the cooperative operation system is notthe same to our rural family contract system, the development of cooperatives in China isbased on the rural household contract system. Past agricultural production took family as aunit, but after cooperatives come out, it takes the farmers planting the same crop or providingthe same service of agricultural production together on a voluntary basis, to form ademocratic management system of economic organization. The purpose of establishingcooperative is to realize the mutual aid of social members, and increase the competitiveness ofthe farmers in the modern market economy. Because of the weak economic strength andagricultural vulnerability, farmers have been at a disadvantage in the market economy mainbody. The emergence of cooperative just solves the scattered small-scale production mode offarm household’s not corresponding with the market, and raises bargaining power of farmers’production materials purchasing and crop sales in the market. In the process of operation,Cooperatives’ service is only for our club members, and the service contains unified purchaseof production, sales of agricultural products, and providing information service and technicalsupport for agricultural production. After several years of exploration and fumbling,cooperatives get preliminary development in our country, drive the production of the localfarmers, and have become China’s important organization form of agricultural modernizationrealization. Because the economic development levels are not neat and some cooperatives areearlier across our countries, the cooperative development degrees are also quite different. Ingeneral, the cooperative development around Zhejiang province is earlier and higher, andcooperatisim the central and western regions started late and the development is relativelybackward. Many scholars, however, by studying the different parts of the cooperativedevelopment and development situation, found that a common factor restricting thecooperative development is cooperative fund problem. One is a shortage of funds, the other iscooperative financing difficulties. Based on Zhumadian where the cooperative developmentstarts late, this article studies the causes of the shortage of funds and the influence factors ofthe credit financing difficulties, puts forward the policy suggestions to solve the problems, and provide references to solve the problem of Zhumadian City’s cooperatives creditfinancing difficulties.This article is divided into five sections on the structure, and each section is arranged asfollowing:In the introduction part, elaborating the background, purpose and significance of selectedtopics, and reviewing the domestic and foreign scholars study of cooperatives and creditfinancing. At the end of this section, it summarizes the research methods, research ideas, theinnovations and shortcomings in this paper.The second part is about the relevant concept definition and theoretical basis of creditcooperatives finance. This part defines the concept of cooperatives and financing, then putssome relevant foreign scholars theories of economics to the study of cooperative, such astransaction costs theory, property rights theory, financial market information asymmetrytheory, etc.In the third part, on the basis of existing research and through on-the-spot investigation,it describes the conditions of Zhumadian cooperatives capital requirements and satisfy, andanalyses the reason of cooperatives shortage of funds.In the fourth part, based on the previous describes of funds shortage of the cooperatives,it analyze the factors affecting the availability of credit cooperative suse of survey data, andtakes descriptive statistical analysis on the influencing factors. Assuming the mechanism ofaction of various factors on the cooperatives credit availability, using Logistic model toanalyze the relevant data, and determining the size of the influence factors and influencedegree.In the fifth part, firstly, I summaried the four kinds of domestic cooperatives’ effectivefinancing practice, then proposed the reference to cooperatives in Zhumadian.In the sixth part,I mainly based on the cooperative fund shortage causes and factorsinfluencing the availability of credit cooperatives, respectively put forward suggestions fromthe angle of cooperatives endogenous financing and foreign financing. Because cooperativesare still a vulnerable group compared with other economic organizations, the governmentshould give full play to the functions of the government in formulating relevant policy, notonly considering the economic efficiency. From the perspective of distributive justice, itshould provide policy supports in the aspect of credit cooperatives, so as to better and fastersolve the shortage of funds, the difficulty of financing credit cooperative.