Study Of Risk Factors And Countermeasures Of Farmer Micro-credit

With the rapid development of China's economy,the financial service under the market-economy background is becoming an important guarantee of national economic development.In the vast rural areas,more and more farmers have begun to try to expand a variety of production activities by the channel of micro loan.However,there exist many risks in farmer loan,which poses a high demand of farmer credit policy of rural financial institutions.Therefore,taking the case of HuangSi Town in GuiZhou Province as an example,this study explores the credit risk factors of farm micro-credit,aiming at proposing suggestions and countermeasures about how to reduce the risks of farmer micro-credit.Based on the literature review,firstly,this paper analyses the causes of farmer micro-credit risks and the present situation of risk appraisal of farmer loan.Then,combining with the risks appraisal of micro-loan project construction of HuangSi Town,it analyses the current situation of farmer loan requirement and determines the problems of farmer loan.Next,it builds a risk appraisal index system--analysis of risk factors of farmer micro-credit,mainly based on the factor analysis and Logistic model.Lastly,it provides relevant strategies and suggestions.This research builds a risk appraisal model of farmer micro-credit at HuangSi Town by the factor analysis and Logistic regression analysis of 242 households' credit data and draws the conclusion as follows:(1)A household's economic foundation plays a decisive role in the risk of farmer mirro-credit.(2)A household's social resources are always indispensable in the risk of farmer mirco-credit,(3)A household's morality has a direct effect on the risk of farmer microcredit.(4)A household's ability factor doesn't affect much on the risk of farmer micro-credit.(5)Among the variants of household's characteristics,education makes the greatest impact on risk of farmers micro-credit,and the influences of other variants are not strong or prominent for their risk of micro-credit,on the contrary,some even will exert a negative effect on it.This paper proposes the following suggestions and strategies to reduce the risks for farmer micro-credit: to improve the farmer family's economic ability;to expand farmers' social resources;to raise farmer families' morality and build integrity environment;to set up an effective and timely governmental credit reporting system;to manage farmer credit documents,to create agricultural insurance and finance guarantee model;to reduce farmers' morality risk;to strengthen the internal management of credit institution and the body construction of farmer credit.This research provides a theoretical basis for reducing the risk of farmer micro-credit and improving the accuracy of providing loan and it expands the application of risk theories and credit appraisal theories.