The Financial Problem And Countermeasure To The Farmer Specialized Cooperatives In HuiTong

As the bond between small producers and large-scaled market, farmer specialized cooperatives play an important role in involving farmers in the market, which can greatly improve farmers'negotiation ability and help them to reduce lost in front of price fluctuation and market risk. Setting up and promoting farmer specialized cooperatives is the most efficient method to solve the Three Rural Issues by farmers themselves. Since the Law of Farmer Specialized Cooperatives of the People's Republic of China was introduced in 2007, farmer specialized cooperatives have been increased rapidly on a national scale. However, lots of problems have been resulted from the surge in cooperatives'amount, among which, internal finance issues have became the biggest obstacle in farmer specialized cooperatives' development that is especially true in Huitong, which is an underdeveloped county in Hunan Province. Although farmer specialized cooperatives and relevant capitalization issues have raised lots of concerns, limited literature has focused on such problem in rural areas. The survey on farmer specialized cooperatives in Huitong showed the local cooperatives have huge demand for the capital, which is a generally problem in their development. This essay has found out the reasons why it is difficult for farmer specialized cooperatives in Huitong to capitalize through the analysis of sample surveys. Meanwhile, corresponding suggestions have been raised here to help solve mentioned problems, which aim to ease the capitalization pressure, improve cooperatives'capitalization ability and promote farmer specialized cooperatives' integrated development through joint efforts of farmer specialized cooperatives, financial loan institutions, financial consultative institutions and our government.