Influencing Factors Analysis Of The Internal Mutual Funds Of Farmers’ Professional Cooperatives

As one of the most characteristic cooperative economy, farmers’ professionalcooperatives are developing rapidly in recent years.Three rural issue becomes the theme ofthe central file No.1for ten years, and the document has been constantly focused onprofessional farmers cooperatives which makes the development of farmers’ professionalcooperatives with conditions and opportunities, but also puts forward a series of newrequirements for its development.With the vigorous development of the farmers’ professionalcooperatives in China, more and more fields are involved, extending from farming toprocessing labor, transportation, information, capital, technology,sales and many other fields.Professional farmers cooperatives also played its functions of handling, sale, technical andinformation provides, standardization and so on, but its financial function is always limited sothat the cooperatives’ funds are not sufficient for its continuous operation.The cooperative’s funds is mainly provided by the financial institutions in threruralfinancial system, including commercial banks, rural credit cooperatives, village banks, smallloan companies and mutual cooperatives. Commercial banks have the most adequate supplyof funds, but will not give loans to small farmers out of the consideration of risk and return;although rural credit cooperatives have served the rural market for a long time,but there is thephenomenon of "blood"; the loan approval of village banks relatively flexible, but the servicedirections of "three rural" began to shake; the small loan company often walk in the edge ofthe usury so that the capital is unwilling to venture into it; mutual cooperatives also graduallyseparated from the agricultural production, making it has no difference with the general smallfinancial institutions. So, in order to solve the shortage problem of the cooperative’s funds,we put foward a view of internal mutual fund in cooperatives. It uses the feature of closerelationship and mutual understanding among the households, can avoid the repeated auditprocedures and the default risk. Through the closed operation, and strict management, cooperatives can greatly solve members’ fund demands in production and life,and improvethe cooperatives’ financial functions, so as to promote the development of cooperatives.Based on cooperatives and cooperatives financing theory, through the investigation andstudy on farmers’ professional cooperatives in Shaanxi area,this paper uses the analysis ofcomparative and influence factors and study the main influencing factors that influence thecooperatives’ internal mutual fund. First of all, the introduction of internal funds mutualprovides a good theoretical foundation for research; then, through field research,we get toknow the present situation of internal funds mutual of farmers’ professional cooperatives inShaanxi, and analysis the causes that affect the internal mutual function; and finally we putforward suggestions to improve the function from the perspective of government, financialenvironment, cooperatives and members.Through the research, we found that government’s support is the most important. Mutualfunds can be carried out smoothly with the policy support; secondly, members should changtheir concepts and completely accept this form of mutual mentally, understanding mutualfunds ‘s convenience and benefits; finally, conducive to internal funds cooperative mutualfunction better play. The increase of the funds,the enhancement of thepresidents’capacity andthe improve of the internal mechanism are all conducive to the play of cooperatives’internalfunds mutual function.