The Investigation On The Financing Of Family Farms In Anhui Province

Family farms have become the important components and the driving force of modern agriculture, representing the trend of modern agriculture in our country. As the supreme form of household management of agriculture, family farms can help refine the agricultural production structure, improve peasant’s income, and promote the development of rural economy. This new management entity is revealing its great vitality in Anhui, a major agricultural province, where people in various places are actively exploring the management model to develop family farms. However, problems go alongside with development. Among them, financing is directly related to the survival of family farms.It has become the bottleneck restricting the healthy development of family farms in Anhui. Therefore, there is a great need for further research on the financing system of family farms in Anhui to ease the financing difficulties during the development of family farms, thus providing more funding and reducing the cost of financing.This paper analyzed the financing situation and the problems during the development of family farms in Anhui Province, using the theory of agriculture related small business financing based on statistics and case studies conducted on grassroots family farms in a county of Anhui. The analysis is from three aspects:the family farms themselves, the financing system, and the external environment. The paper used case studies in a county of Anhui to introduce the current financing situation of grassroots family farms. Taking advantage of the intrinsic characteristics of Anhui Province and the mature experiences of family farms in some typical areas of foreign countries, this paper proposes some basic ideas to establish the financing system for family farms in Anhui. Specifically, the paper gives the following suggestions:1) refine the financing policy to create a good environment to protect family farm financing; 2) promote the reform of rural financing, and establish a credit rating system for family farms; 3) expand the scope of collaterals and propose new financial products; 4) develop agricultural insurance and establish a complementary agricultural risk security mechanism; 5) improve the comprehensive ability of family farms and enhance internal financing; 6) construct a sound social service system for family farms.