Credit Contraints Influencing Factors Analysis Of Breeding Pig Farmer

In recent years,the process of agricultural industrialization in China has accelerated and modern agriculture parks spring up in fast speed.Much agricultural land has been expropriated and then it leads to much surplus rural labor which obstructs the development of modern agriculture.Thus,solving the farmer’s employment problem legitimately becomes the key to improve the development of agriculture and also has significance to improve the living standards of farmers.At present,pork is the main consumer meat for the residents in China,the demand for pork has been increasing with the rapidly improving living standards.Pig breeding process requires large amounts of human resources,so it can provide employment opportunities and income for farmers in addition to be migrant workers.Meanwhile,the profit of pig breeding is much more than small-scale farming,it is an effective way to promote farmers’ income.However,the whole process of pig feeding needs advance funds from farmers which prompt farmers to seek foreign loans due to their own limited funds.When household credit demand can;t be met,it means existing credit constraints.Legitimately solve the problem of credit constraints has vital significance to promote agricultural restructuring,help farmers generate income as well as solve farmers’employment problem.The main contents of this paper have three parts:First,define the concept of the demand and supplyof farmer creditas well as the credit constraints.And then seek ways to determine whether there is credit constraint from theoretical perspective.Second,analyze the status quo of pig feeding by sorting household survey data.Firstly,analyze the pig breeding situation in Yancheng according to the statistical yearbook.Then,descriptive and analyze of the basic family situation and pig breeding behavior of sample households.At last,analyze all kinds of production factors inputs and conditions of slaughter earnings of each local farmers’ rearing pig from the angle of cost-effectiveness.Third,describes the basic credit conditions of the local pig breeding farmers.It mainly includes the demand for credit,access conditions,loan purpose,loan term,repayment,etc.So as to determine whether there is credit constrained for the sample households according these information.The gross production of Jiangsu province has always been ranked in the forefront in China.And in the northern areas,the development of modern agriculture is so rapid that agricultural output achieves a quantum leap.Due to large areas of rural land contracted for sale in NorthernJiangsu,rural surplus laborincreased significantly.So the paper chooses representative Yancheng area asthe sample area to conduct household survey.As a result,there are 298 valid questionnaires.On the base of related theory,the article learns the production decisions and behavior of pig breeding household and explains the causes and factors of farmers’ credit constraints from the theoretical point of view so as to ensure the reasonableness and accuracy of variable settings.On the process of empirical analysis,the paper chooses Heckman two-stage method.After related test,assign to each variable and conduct regression analysis.According to Probit model,it comes out with significant status and effect value of every influencing factor.Based on the results,it elaboratesthe factors of credit constraints from an economic point of view.In the final,estimatethe credit demand gap of local farmers on the base of part sample households data.The study finds that credit constraints factors of pig breeding farmers can be divided into three categories:the basic characteristics of the farmers,pig breeding behavior,and the credit status of farmers.The paper conducts empirical analysis on two aspects which are whether farmers get loans and the factors of whether farmers have credit constraints.The regression results shows that,the age of householder,the labor force,productive fixed assets,aquaculture production life,borrowings,breach of contract and the mortgage situation significantly affect the possibility of farmers to obtain loans.The age of householder,the labor force,degree of education,family income,productive fixed assets,aquaculture production life,Pig breeding stock,borrowings,breach of contract and the mortgage situation have significant impact on farmers’ credit constraints.On this foundation,the paper conducts OLS regression on the base of credit data of farmers in class D.After estimation,it comes out that the mean of farmers average loan demand is 30648.7 yuan,and the farmers actually get loans 5169.4 yuan.And the rate of farmer credit constraints in this sample area is 16.87%.