Peasant Household Borrowing And The Equal-field System Collapse

In these years,three agriculture-related issues have been plagued the economic transformation of our country which became a difficult task. On the basis of many reasons, such as history and the current policy. China’s agricultural development has a great progress in overall yield and output value. However most farmers still stick to relatively poor small farm management form.Therefor, there exists some serious problems in finance. Firstly, small scale, capital shortage,and relatively high in short-term money demand. Secondly, single business model and poor anti-risk ability.Thirdly, shortage of the rural financial supply,exclusion of “dominant” financial and“hidden financial”.Equal-field system is an important part of the land system evolution in our country whose executed way and the current land policy has many similarities. At the same time, it can be seen that farmers between,equal-field system and our country are now under the household contract responsibility system. In the process of collapse of equal-field system, borrowing has played an important role in how it works. Besides, it plays a significant role modern financial development.However, it rarely studied at home and abroad in terms of the collapse of the equal-field system to the farmers lending.This paper is made up of four parts.1, First of all, loan principal properties and sources of funds are classified and it lending patterns are divided. According to categories, it analyzed from borrowing loans for agriculture, the lending revenue and costs, and repaying. Then it emphasizes the farmers burden in borrowing rates on equal-field system. From analysis, it can be seen that the debt burden plays a role in the process of land equalization policy disintegration.2, After analyzing the lenders,debtor of loan relationships---equal-field system farmers are studied. Especially, the equal-field system farmer income, operating costs, lending reasons are explored. In different mode, it lists the payment collection situation before and after equal-field system households to borrow money. By analyzing its lending reasons, it aims to understand equal-field system farmers ability in loan repayment.3, Both simultaneousand establish game strategy, and then constructing a game tree. By the analysis of equal-field system farmers behavior, it confirms that the agricultural lending affects equal-field farmers behavior. Therefore, several different lending models make an effect on collapse of the equal-field system. 4, This article focuses on “Yicang”(Shecang) system-a certain inclusive finance to the nature of the financial model.Through research, it can be proved that the system of equal-field system have a households support role, as well as the limitations of its supporting role. Besides,according to these experiences and lessons, this paper put up with some feasible improvement schemes in China’s current rural financial model.