A Research On The Influence Of Rural Property Mortgage On The Farmers’ Income Of Western Region

Rural financial services are playing an increasingly important role in the process of solving problems about agriculture, Rural areas and Peasantry of China. Generally speaking,in the production process, in China’s western region, the supply of rural financial market funds can not meet farmers’ demand for capital, so the plight of the rural financial market is less than demand. And compared to three elements of labor and land, financial constraints,namely the difficulties of farmers in getting loans, have become a major constraint for Rural Economic Development in Western China. Farmers’ lack of collateral for loans causes financing difficulties, which are the direct reasons of insufficient capital in the rural areas.Rural property mortgages is exactly meet the farmers’ needs for formal credit loan, and it has become a new way to solve the financing difficulties of farmers. This paper attempts to analyze the influence of rural property mortgages on farmers’ income, and show the necessity of the implement of the rural property mortgages in terms of its effect on farmers’ income in practice.Based on rural property mortgage survey data, firstly, we give a simple description of the factors which may have influence on farmers’ income so that the readers are able to get an intuitive understanding of the distribution of farmers’ income, in which we find the data preserve obvious right side "fat tail" phenomenon. Then, in order to study farmers’ income,we construct linear mean regression model, linear quantile regression, non-parametric and semi-parametric additive quantile regression model for different income levels with rural experience and loans(loan amount, loan purpose, loan period) respectively. We find loan experience is significant in the linear quantile regression model and the elements of loan are significant in the semi-quantile regression model. So we choose the linear quantile regression model and semi-quantile regression model to analysis the agricultural income and non-agricutural income particularly. The main analysis results are listed in below:1. Lending experience for all income levels of farmers families have a significant positive impact, its contribution rate to the agricultural income was significantly higher than non-agricultural.2. The amount of loan has significantly positive impact on every income level and agricultural income, and the impact of every income level trend broadly consistent. The promotion of farmers’ income by the amount of loan is mainly because the promotion of the growth agricultural revenue. And the amount of loan also has a positive impact on non-agricultural income of the middle and high income households.3. The impact of the use of the loans on the total income of high-income households,agricultural income of middle, upper and high-income households, as well as the impact of non-agricultural income of high-income households is significantly positive. Borrowing funds for productive expenditure on revenue has a significant positive impact in promoting farmers’ income.4. The impact of the deadline of the loan for all income levels, agricultural incomes are not significant, but its impact on non-farm income and farmers of lower income is significantly positive. Because non-agricultural business chain is longer, a relatively long period of non-agricultural loans are more suitable.Proposed recommends: 1) Financial institutions should collaborate with the government to propaganda the rural property mortgage loan policy and improve farmers participation enthusiasm, to further expanded recipients of rural property mortgage loan to increases the efficiency of policy implementation; 2) Financial institutions should release the constrains on the way how the farmers uses the loan and the limit of the term of the loan, support the lending for life and production; 3) Government should focus on creating more agricultural and non-agricultural production investment opportunities to improve farmers’ investment force, and strengthening farmers education and Technical skills training which are the solid foundation for the promotion of farmers’ income.