The Effect Of Delayed Payment Of Agricultural Machinery Subsidy On Farmer's Agricultural Machinery Loan Accessibility

Since 2004,the agricultural purchase subsidy policy of "post purchase" plays a positive role in encouraging the farmers to purchase agricultural machinery and promoting agricultural mechanization."Post purchase" mode is a mode that the farmers do not need to pay the full amount when purchasing agricultural machinery,just need to give dealers the remainder after deductibility of state subsidies.Afterwards,the government will offer subsidies to dealers.Obviously,this kind of subsidy mode significantly reduces farmers'pressure of purchasing agricultural machinery,stimulate farmers purchase demand.However with the continuous implementation of the policy and the increase of subsidies capital,the drawbacks of the subsidy model fully revealed,reflecting in common occurance of collusion arbitrage.Based on this background,in 2012,our country firstly carried out the new agricultural subsidies mode which is "post purchase" in Jiangsu Province and Zhejiang Province.The new mode in one hand deprives some power of violation operation by farmers in basic,on the other hand increase violation cost of agricultural machinery competent department and sales enterprises.The change of model from "post purchase" to"purchase in full price" not only enhanced the pressure when buying agricultural machinery,but also result in the transform of farmers' credit behavior from "binary game"which is between lenders and borrowers to the "ternary game" which is effected by government.The change of debit and credit environment may significantly influence farmers' credit behavior.Therefore,it's necessary to study again farmers' credit behavior and the availability of agricultural machinery loan,and questions so on.According to the analysis of the data of statistical year book between 2008 and 2014,and gross power of national agricultural machinery between 2004 and 2013 in Zhejiang province,this paper found that the year in which "Full-price purchase" model begun to be promoted would always be the "inflection point year".Before the "inflection point year"gross power of national agricultural machinery and the data of holding quantity increased year by year,After the "inflection point year" gross power of national agricultural machinery and the data of holding quantity grow slowly even appeared negative growth.By contrasting with previous studies,I found that the reason of appearing the "inflection point year" is not farmers lacking of the intention of purchasing Agricultural machinery,but because of farmers can't get the money through bank loans.Why the farmers get the money through bank loans become harder.This paper attempts to explore it by studying 391 farmers in the area of Hangzhou,Jiaxing and Huzhou.The results showed that:In the pattern of 'the delayed subsidy',the factors that affect the agricultural machinery loan accessibility in the informal financial channel have changed significantly comparing with that in the pattern of 'the instant subsidy',with the increasing proportion of delayed subsidy in the borrowing balance.To be specific,the indicator----credit status,which represents farmer's repayment willing,has an enhanced influence on farmer's agricultural machinery loan accessibility.The indicator---guarantee or pledge,which represents farmer's repayment ability,has an weakened influence on farmer's agricultural machinery loan accessibility.However,the factors that affect the agricultural machinery loan accessibility in the formal financial channel didn't change much comparing with that in the pattern of'the instant subsidy' and the guarantee or pledge always plays the most important role in farmer's agricultural machinery loan accessibility.Therefore,this paper has drawn a conclusion that 'the delayed subsidy' cannot relieve the dilemma which resulted from farmers' lacking of guarantee and pledge in informal financial channel.This paper studies the agricultural machine purchasing requirements,agricultural machine loan demand and the availability of the agricultural machine loan under the model of "full price purchasing machine",reveals the root cause for the inflection point in terms of the agricultural machinery total power and the total quantity of agricultural machine ownership as well as the difficult situation for peasant households in applying for the agricultural machine loan.This requires policy makers to strengthen their attention on the matching between peasant households and loans and promote the rural financial organization to implement loan projects for the agricultural machine purchasing subsidy;they should encourage regular financial organizations to play an active role in the agricultural machine loan of peasant households;they should guarantee the subsidy efficiency,issue the subsidy timely,improve the difficult situation of agricultural machine loan for peasant households and thus promote the further development of Chinese agriculturalmechanization.