The Strategy Of The Industrialization Of Agriculture In Dingbian Country Based On Financial Support

Agriculture has always been the foundation of national economic development. The industrialization of agriculture is an inevitable choice for promoting the sustainable development of agriculture, which is also the only way to transforming China traditional agriculture to the modern agriculture, increasing farmers’ income and mitigating the income gap between urban and rural areas. But in the industrialization of agriculture, the improvement of production technology, the enhancement of economies of scale and market development cannot do without financial support. Financial support, as the important and essential tool, has very high requirements for rural market financing. However, the current financial model certainly has not created corresponding financing market for the scale operation of agriculture, but still maintained the credit investment mode which was mainly designed for traditional agriculture. As a result, it failed to adapt to the industrialization of agriculture.In this context, this paper of Shaanxi Province Dingbian County agricultural industrialization financing demand and supply and demand main body behavior characteristics, the status of the rural financial system, select Dingbian County in 2010 to 2015 rural GDP growth and rural financing demand amount of relevant data for empirical analysis, it is concluded that the relationship exists between the two, and further points out that the three problems existing in Dingbian County agricultural industrialization development process. Firstly, the financing demand of agriculture and related industries could not be satisfied. Secondly, the functions of China agricultural finance system were not perfect. Thirdly, the absorptive capacity of financial resources of China agriculture and related industries was low. From the empirical perspective, in this paper, agriculture financial development model theory, adverse selection theory and dual financial structure theory were adopted to analyze the issues concerning the financial support for the industrialization of agriculture in the area of Dingbian County, Shaanxi province. Based on the analysis, four main factors that restricted the financial support for the industrialization of agriculture were concluded, including the intensified rural financial resource plunder caused by energy industry, the inborn weakness of agricultural production in financing, the rural financial development lags behind, and the restriction for the industrialization of agriculture caused by the insufficient financing service system.In terms of countermeasures of the industrialization of agriculture in Dingbian country, in this paper, the advanced experience of developed countries with relatively complete rural financial system was learned, based on which six solutions specific to the restriction factors concluded in the empirical analysis were proposed. Firstly, the environmental governance for the industrialization of agriculture should be optimized and the social investment orientation should be clarified. Secondly, the construction of rural credit system should be accelerated and regional capital accumulation capacity should be reinforced. Thirdly, diversified financing channels should be broadened to enhance the effective supply of funds. Fourthly, perfect financing risk guarantee system for the industrialization of agriculture should be established. Fifthly, innovation in financial services should be promoted to meet the requirements of new agricultural enterprises. Sixthly, effective agricultural industry financing communication platform should be established.