Research On Family Farm Land Contract Management Right Mortgage Loan Decision

In our country,agriculture has a long history.The healthy and rapid development of agriculture is the basic safeguard of our country's economy.Even in this time,which the second and third industry takes a more and more large proportion of GDP,Agriculture as the foundation of our national economy,its importance cannot be ignored.Family farm has several hundred years of development history in foreign countries.This has played an important role in promoting the development of local agriculture.Since the concept of family farms have been proposed,it becomes an important subject of agricultural modernization quickly with its unique advantages.Development of agriculture is a necessary part to prosperity of the whole nation.The family farm is a new agricultural management subject,plays an important role in solving the Three Agricultural Issues and promoting the modernization of agriculture.However,the cultivation and development of family farms are facing many difficulties.Among them,the financing difficulty is one of the main obstacles,because of the complexity,the risks,the shortage and the information asymmetry of rural finance.In recent years,standing long-term perspective,the central government,according to the actual situation of the family farm,made a decision that to allow to finance with the mortgage on the ownership of the rural contracted in order to solve the financing problem of family farms,and promotion in the nationwide after piloting in parts of the country,which is to solve the shortage of funds for family farms provides a new idea.To finance with the mortgage on the ownership of the rural contracted farming land is a new way to the difficulties of family farm financing.However,since rural finance is complex and weakness,it is not easy for financial institutions and family farms to make financing decisions,which hindered the implementation of the policy to some extent.It is based on the great importance of the three dimensional rural issues and the concern for the development of rural finance,we adopts system dynamics method to established system dynamics model from the perspective of the family farm and financial institutions,which is used to analysis the profit and loss of financial institutions and family farms during the land contract management right mortgage,helping both sides of financing make reasonable decisions.In the system dynamics model of the decision of financing with the mortgage on the ownership of the family farm contracted management right,which is established in theperspective of the family farm,we figures it out the optimal financial ratios and financing terms of family farms in terms of the mortgage business on the management right of rural contracted land with a simulation of the business data from a family strawberry farm of Chongqing province.At the same time,this paper builds up a bank system dynamics model of gains and losses who is occupied in the financing business with the mortgage on the management right of the contracted land in the perspective of financial institutions,and then makes a simulation analysis on the data of a bank of Chongqing province and reveals that financial institutions engaged in this business will not suffer from a huge loss in the scientific design of risk-sharing and compensation mechanisms.Based on this,some recommendations which has certain reference value,like improving the relevant legal system,establishing and improving the rural credit system,establishing a scientific risk-sharing and compensation system,the establishment of rural asset management institutions and so on,are put forward.