A Study On The Financing Selection Of New Agricultural Entities And Its Influence Factors

Based on household contract system yield,new agricultural business entities have large-scale planting and breeding,advanced production technology,scientific management system and a high degree of agricultural commercialization.It has been proposed many times in Central file that it is urgent to develop new agricultural business entities forcefully and to provide technical and financial support for itself.As a major agricultural province,Jiangsu pays attention to the development of new agricultural business entities seriously.New agricultural business entities include large breeding farmers,family farms,farmers'cooperatives and agricultural industrialization leading enterprises.According to different agricultural production and management,cities and counties develop new agricultural body defining standards and specifications of new agricultural business entities,providing support in terms of agricultural technology,agricultural subsidies,financial services and so on.Whether in practice level or at the theoretical level,the current developments of new agricultural business entities have made some progress.Especially in the terms of behavioral finance,the differences of financing needs between new agricultural business entities and traditional agriculture business entities at the theoretical level has been noticed.In practice,all regions have also encouraged financial institutions to innovate financial products to meet the financing needs of new agricultural business entities.In addition,when it comes to research on the characteristics of financing behavior and its influencing factors,although some existing research are down from micro perspective,most of the research models follow the financing behavior of traditional agricultural business entities.Some factors influencing financing activities are included,such as individual characteristics,economic characteristics and part of the production characteristics.Some key factors such as production behavior,factors of production are ignored.First of all,by comparing the new agricultural business entities with traditional farmers,there are lots of differences in individual characteristics,characteristics of agricultural production and factors of production inputs.Then,by analyzing the data,the differences between new agricultural business entities and traditional farmers in financing channels,financing terms,financing purposes,financing costs and so on are obtained.Finally,the use of financing is divided into fixed and variable production factors of inputs and the financing channels are divided into formal channels and informal channels.By building models,the relationship between financing use and financing channels of the new agricultural financing business entities is verified.In general,the individual characteristics of new agricultural business entities and agricultural production characteristics,production factors,financial factors all lead to changes in the scale of its financing,financing purposes,financing terms,financing costs and other financing needs features.Meanwhile,the match between these factors and financing channels forms the unique financing options.Change in production factors is an important reason for the change of new agriculture business entities financing.Compared with the traditional farmers,the total investment of fixed factors of production in new agricultural business entities is higher and its factor of production is also higher.Compared with traditional farmers,new agricultural business entities can access more formal channels of financing,but its financing needs are not being met.In addition,the results are as followed.Compared with traditional farmers,education,household income,agricultural fixed assets,land size,land mortgage policy and other factors also have an influence on the selection of financing channels of new agricultural business entities.In the production behavior,there is a big difference between the new agricultural business entities and traditional farmers,which lead to the quite different production factors structure.Fixed production factors are met through informal financing channels,while variable factors of production inputs such as fertilizers are mainly through informal financing channels.Characteristics of new agricultural business entities are the match of financing uses and financing channels.Finally,through analysis and empirical results,it is suggested that combined with the new features of new agricultural business entities such as factor inputs,production deadlines and other factors,formal financial institutions should actively innovate financial products related theories.At the same time,the important role of informal finance in the development of new agricultural business entities should be taken seriously,to strengthen the development of new agricultural business entities.