Study On Financial Innovation Support The Development Of New Agricultural Management Entities

With the continuous development of China’s agricultural economy, with large breeding, farmer cooperatives, family farms and agricultural industrialization leading enterprises as the representative of the new agricultural management entities is showing great vitality and vigor, has become the main force in the development of modern agriculture in china. But the new agricultural management entities of their own small scale, lack of effective collateral guarantees, management efficiency is low, the operation is not standardized, weak anti risk ability, and high risk brought about by the agricultural industry development and natural disasters, the majority of the new agricultural management entities faced with severe challenges in the process of development, especially the financing, risk dispersion and compensation mechanism is not perfect the two problem can’t be solved effectively, has become a bottleneck restricting the sustainable development of the new agricultural business entities. Throughout the world, financial innovation is regarded as the fresh blood of the financial system, it has positive effect for economic development. Therefore, in-depth study of new agricultural management entities financing difficult reason, the risk and its management problems, exploring how to use the financial innovation to solve these two problems are particularly important.In general, resulting in new agricultural management entities financing difficult reason is in many aspects, the mathematical model is derived that lack of collateral, bank payment to use high and banks the opportunity cost is a theoretical reason for financing. At the same time, the use of official data and research results come to the reality of the financing difficulties:first, from the new agricultural management entities themselves, internal management is not standardized, capital recovery period is long and the efficiency is low, the bank loans with self exclusion theory defects; second, from the perspective of financial institutions, credit capital structure, financial institutions in rural areas, a single service the development of agricultural insurance is lagging behind and lack of guarantee institutions guarantee function will constraint of credit contract agreed; third, from the government point of view, the mortgage of land contract management right is difficult and the government support policy is not enough to create obstacles to new agricultural business entities financing.In agricultural production, new agricultural management entities facing natural disaster risk, market risk, social risk and technology risk, in order to ensure the business benefits, they will take some emergency measures, but due to the presence of weak risk awareness, risk management tools Co. and internal management talent shortage problem and the risk management effect of new agricultural business entities has been poor.Therefore, there are some aspects of financial innovation to support the development of new agricultural management entities:first, to increase financial product and service innovation, such as the exploration of credit products, to develop diversified insurance and security innovation mode; second, should establish and improve the new management mechanism of agricultural business entities such as increasing risk, insurance, improve the rural mortgage guarantee system and so on; third, must strengthen financial institutions interbank cooperation, such as the big banks and small banks, banks and small loan companies, banks and insurance companies, banks and Guarantee corporation.