Study On The Behavior Of Farmers’ Borrowing Under Credit Constraints

Due to the weakness of agriculture and information asymmetry in the demand and supply side of rural financial market, the phenomenon of farmers’ difficulty in loans still appears frequently, which becomes an important restriction bottleneck for the “three rural” issues. In reality, the main characterization of farmers’ difficulty in loans is the credit constraint. Seen from the perspective of farmers, farmers are the decision-making body, and their borrowing decisions are rational choices in facing of external conditions of credit constraints. Meanwhile, farmers are the customers of agricultural financial institutions, their borrowing behavior characteristics, and regularity has important guiding significance for loan business of agricultural institutions. This research mainly concerns farmers’ present state loan demands, the existence of credit constraints, the characteristics and regularity of farmers’ credit behavior under the condition of credit constraints, the way of solving credit constraints and standardizing and guiding farmers’ credit behavior.Based on the survey data of 564 farmers from Laixi, Xintai and Fei county in Shandong province, this research analyzes current farmers’ borrowing demand situation, the facing credit constraints, borrowing situation, which establishes the ordered Logit model to analyze the influencing factors of farmers’ borrowing behavior, and main findings are as follows:First, there are borrowing needs than to a third of farmers, the farmers life is the main life demand on consumer borrowing needs. Present agricultural productive loan demand and non-agricultural farmers productive borrowing needs almost half, agricultural productive farming demand accounted for the biggest loan demand.Second, about 28.19% of the farmers are facing credit constraints, from which complete credit constraint farmers accounts for a third and to some extent of credit constraint farmers accounts for two-thirds. One cause of the phenomenon of credit constraints is the problem of asymmetric information, which leads to the big costs and small earnings for the financial institutions; While the financial institutions usually adopts the way of principal-agent to solve the problem of asymmetric information, but there are a lot of problems in operation for principal-agent and produces the phenomenon of rentseeking, eventually making many farmers have borrowing needs cannot get loans. Third, in the borrowing needs of farmers, fully borrowing behavior of farmers account for nearly half of all; not sufficient borrowing farmers account for about a quarter; none borrowing of farmers account for 29.32%.Fourth, seen from the estimation results of the ordered Logit model, variables of credit constraints, social resources, total family assets, survive by agriculture or not have significant effects on farmers’ borrowing; farmers in facing of credit constraints, the relevant borrowing needs will be squeezed out to the informal financial institutions need, including legal private borrowing and illegal private lending(usury, etc.).Based on the above conclusions, reduce the credit constraints and optimization of farmers’ lending policy recommendations by this research include: first, the government should continue to increase the scope of the loan and guarantee and pay attention to innovation modal and the development of financial products; second, the number of rural normal financial institutions should gradually increase and further improve the rural financial organization system for promoting the development of the rural credit market steadily in order to achieve the target; third, the relevant government departments should formulate financial institutions to support policy and reduce non-performing loan ratio; fourth, the farmer’s loan behavior should be reasonable to guide and specification.