Research On The Construction Of The Credit Rating System For Farmers In Poor Areas

In China,the issue concerning “agriculture?countryside and farmers” is one of the key issues in social development.The greatest characteristic of rural economy is that the inequality of development,there is large difference between the rich and the poor for farmers.For rich farmers,they have collateral for loans.But for poor farmers without collateral,they can only get micro-credit loans through credit rating.However,in the existing credit rating system of farmers,most of the indicators are about their economic conditions,it cannot reflect poor people's repayment ability in a scientific way.In recent years,a large number of studies have found that social capital can affect loan availability,therefore in this paper,we find some new evaluation indexes and build a new credit evaluation system which is more suitable for poor farmers,this system is established by BP neural network.Finally,we also put forward some relevant suggestions.In this paper,we start with the basic concepts of the credit rating for farmers,and secondly make a statistical analysis of the credit of the farmers in the Inner Mongolia region by the characteristics of farmer's family and themselves ? the ability of the farmer to pay the debt?the farmer's social capital?the loan?the farmer's credit and the regional environment.According to the data collected from the farmers,Logistic model analysis was used to analyze the significant factors which influencing the credit of rural households in the Inner Mongolia.Based on the results of the model,we found 21 key indicators.In these indexes,we reduce the indicators about mortgage,but joined the the indexes about farmers' social capital.According to this indexes,we build a new index system for credit rating in poor areas.And then evaluate the credit of farmers by BP neural network.Finally,through the previous analysis and model construction,there are four points to improve the farmers credit rating system.The suggestions include improve relevant laws and regulations ?build a suitable credit information platform and credit rating index system.