Effect Of Hunan Agricultural Loans To Farmers' Income Growth

In recent years, agricultural developed very well in Hunan province. The rural reform push forward steadily, and the farmers' income got a little improved. But it shouldn't be ignored is that the income gap still large between urban and rural areas.Compared with the national average level, average income of rural residents in Hunan province is low. There is an urgent need to solve the farmers' income growth. Besides,this is one characteristic of solve the problem of “agriculture, rural areas and farmers”.The farmers' income growth cannot leave the support of rural finance, investment in agriculture loans is one of the important factors affect farmers' income growth, to study the effect of Hunan agricultural loans for farmers' income is necessary.The domestic and foreign related research from the perspective of financial development to study the growth of farmers' income, but relatively few concrete to the analysis on the agricultural loans. In this paper, starting from the background of research, introduces the purpose and the significance, put forward the research of thought. Firstly, this article on the basis of relevant theories of agricultural loans affect farmers' income, analyzes the current situation of Hunan agricultural loans to promote farmers' income, proposing the restricting factors in the process of Hunan agricultural loans influence farmers' income. Then using the sample data of Hunan province from1984 to 2013, using VAR model to study the Hunan agricultural loans affect farmers' income, the empirical analyzes the relationship between agricultural loans and peasant's income, the contribution rate of agricultural loans for farmers' income and financial support agriculture contribution rate of agricultural loans. Finally, based on the current situation of Hunan agricultural loans affect farmers' income and the empirical results, from the agricultural loan investment, investment structure,management and so on, putting forward the suggestions to promote peasants' income.The research results show that there is a long-term relationship between the agricultural loans and farmers' income. Agricultural loans, finance support agriculture and agricultural products price is the granger reason of per capita net income, but the impact on the farmers' income lagged agricultural loans. The main reason is that the main purpose of using loans is used in household production and operation, and the agricultural production cycle is really long, the investment effect is hardly show fast.