Financial Support Of Family Farms In Chengdu

Since the concept of "Family Farm" has been proposed in the Central Document during 2013, the development of family farms attracts a lot of attention from politicians, academics and social capital sectors, and it gradually develops into a new investment area in new agriculture of new period, showing that China's modern agriculture has great vitality and potential in the future. The family farm is regarded as an economic form of a new type of agricultural business entities, continuing to achieve economies of scale through the development of appropriate scale. However, because it is in the early stages of its development, there are still some weaknesses, such as small scales, lacking of effective mortgage collateral, financing difficulties, weak anti-risk capability, Policy, capital, talented person, technology, and many other challenges and constraints, particularly the financing problem, has become a bottleneck for many family farms' further development. Under the current circumstance, especially financial supply is little optimistic, how to effectively provide a wide range of financial support to family farms is particularly important. Therefore, this paper explores the development of family farms' local financial support paths, which is based on the sample cases of family farms' field research in Chengdu.Firstly, the paper reviewed and summarized relevant research on the Family Farm and its financial support at home and abroad, and fully drew on economies of scale theory, the theory of financial resources and financial function theory, asymmetric information theory and the theory of adverse selection etc., and defined the concept of Family Farm, its financial supply and demand, financial support. Secondly, combining the current development and financial supply and demand of family farm samples in Chengdu, the paper analyzed the financial support of family farm in detail from financial awards complement support, the bank credit support, the private lending support, the agricultural insurance support etc. aspects.Furthermore, with the combination of field survey data, the paper used the main financial support ways as the explanatory variables and introduced three categories of control variables, farmers' own characteristic variable, production characteristics variables, institutional arrangements variables. It also used multiple ordered Logit model to empirically test the sample family farmers' satisfaction for financial support, and estimates the results of the model, and does a analysis and explanation in detail. Based on the above analysis, we reached the following conclusions:(1)the increase of the government's financial awards complement support and agriculture-related financial institutions' bank credit support like the Agricultural Development Bank, can significantly improve the effect of family farms' financial support;(2)the current prosperous private lending financial support is the main force of the family farms' financial support, but the development of such support over the way will reduce the effect of family farms' financial support;(3)the improve of the policy-oriented agricultural insurance's financial support, can provide better protection of the financial support for the development of the family farms.Finally, based on the existing research conclusion, the paper proposed some relevant suggestions from the view of the government, the agriculture-related financial sector, the insurance institutions etc. The suggestions were:(1) playing the leading role of the government, in order to create a relaxed and orderly policy environment;(2)mining the main role of the agriculture-related financial institutions, in order to open up the financing channels;(3)guiding appropriately and standard the development of "the grassroots finance", in order to provide differentiated financial services;(4)improving the main supply of the policy-oriented agricultural insurance of a variety of agricultural insurance mechanism to protect the family farm from risks.