Does Farmer Risk Attitude Have An Effect On Credit Rationing?

In the background of agricultural modernization,agricultural moderate scale management in academic and policy circles have formed a basic consensus.In moderate scale management processes,however,can have huge financial needs of farmers.Farmers ' low incomes and limited resources,unable to meet the growing demand for capital in the operation,which rely more and more on credit funds,rural credit from formal financial institutions support is vital to meet the financial needs of rural residents.However,due to multiple reasons,such as asymmetric information,credit rationing prevailing in China's rural financial market.The existence of credit rationing led to farmers ' lack of money,have a negative impact on farmers ' production and operation.Study on the influence factors of credit rationing,scholars from the supply and demand-side point of view an in-depth study,but little existing literature devoted to the study of farmers ' risk preferences and household credit rationing.Farmers as the main micro-loans,which will,behavior,appetite for risk has a fundamental impact on farmers 'decision-making behavior,so the study of influence of farmers ' risk appetite on credit rationing,to ease the analysis of rural financial repression and decisional significance.Combining risk associated with credit rationing literature study,the deficiencies of the present division of credit rationing,and then defines the credit rationing and recognition and measure of farmers' risk preferences.Applying the analysis way to deduce the risk preferences of the different effects of credit rationing,put forward three hypotheses,namely risk appetite farmers vulnerable to supply credit from financial institutions ration,risk-averse farmers vulnerable to their own needs-credit ration,risk preference on behalf of the farmers vulnerable to credit rationing.While on the basis of field research,analyses,Sichuan,Henan,Zhejiang and Heilongjiang Provinces of grain growers,farmers in China are found widespread age-related,family size,and grain growers ' differences of cultivated land in different areas,there are great differences in living conditions and other issues.Credit status is concerned,there are 31.8% households there is a funding gap and credit applications,46.04% farmers need credit rationing,71.65% by the actual supply of credit rationing,in households without credit applications,credit rationing in the name is 19.22%.On the basis of qualitative analysis,use Logit model empirical analysis of the impact of farmers 'risk preferences on all kinds of credit rationing,farm sizes through robust test to test the different loans.Result shows that the stronger of risk appetite the more vulnerable to formal financial institutions creditrationing due to the shortage of mortgage.Because of different loan scales exist strong heterogeneity,the larger of the loan scale the more susceptible to the actual supply credit rationing;the stronger of risk averse the more susceptible to actual demand credit rationing.Furthermore,the smaller loan scale farmers are more obvious;and the stronger of risk appetite the more vulnerable to the name credit rationing.Based on the above,from the perspective of farmer's risk attitudes presented proposed mitigation policies on farmers ' credit rationing,intensify propaganda,perfect the social security system,the expansion of farmers ' mortgage guarantees,development finance and inclusive financial advice on the Internet.