Study On Borrowing Behaviors Of Rural Households In Binchuan County

China is a large agricultural country with a large number of agricultural populations.Over the past years,the No.1 document of the Central Government has focused on the problem of countryside agriculture and farmers.The solution of the problem of countryside agriculture and farmers.depends on the development of rural finance.There is an urgent issue to solve the problem of difficulties of loan for farmers,to build the rational construction of the rural financial system.Therefore,it is necessary to make a specific analysis of the characteristics of farmers' loan behavior.This paper selects Binchuan County farmers as the research object,which based on the theory of rural finance,and the economic and loan behavior of farmers.Secondly,satisfied with the actual loan demand of farmers,and conducted a field study,and questionnaire among formal financial institutions and rural households from Binchuan County.The questionnaire shows that most loan behavior of farmers in Binchuan county has the following features: 1.Mortgagors generally had receives elementary and junior high school education;2.Nearly 70% of rural households have loan needs;3.Most farmers,who grow grapes and citrus,have a high and stability income,which need reinvestment for higher production loan demand;4.Farmers' loans to formal financial institutions tend to produce investment purposes.Relatives,friends,and private lending activities are mainly to meet consumer demand for lending;5.farmers lack collateral,loan period to one year;the local farmers generally do not understand the financial institutions credit products.The basic characteristics of the lending behavior of farmers in the above Binchuan County reflect that the local farmers have a strong demand for borrowing and lending.Due to the lack of effective collateral,such as the selective supply of regular financial institutions,and the lack of effective collateral for local farmers,the phenomenon of farmers' financing is difficult,resulting in different lending behaviors.Based on the analysis of the characteristics of farmers' borrowing and lending behavior in Binchuan County,with the help of probit model,the empirical analysis shows that the more family labor burden,the larger actual farmland area and the higher income is,the more households need to have loan demand.The more actual land area of farmers,the higher annual income,the more understanding of the credit products of financial institutions can induce farmers to borrow from the regular financial institutions.Through the specific analysis of the above-mentioned rural households' lending behaviors,with the premise of optimizing farmers' lending behavior,and raising the farmers' lending demand satisfaction rate,the government level is actively building a rural financial service system that meets the characteristics of farmers' lending behavior,and financial institutions should implement the "banking and insurance" interaction model and strengthen product innovation and propaganda,peasant household level selfimprovement recommendations related to financial literacy,in order to promote the development of local rural economy.