Analysis The Differences Of Farmer Credit Needs

Formal financial institutions can not effectively meet the farmer credit needs in rural areas is a common problem in the current rural financial market.Farmer credit needs can not be met will affect the living and production levels,and affect the development of the rural economy and urbanization process.Domestic and foreign scholars have done a lot to study this issue.Most scholars study this issue based on the assumption of homogeneous farmer credit needs.This assumption leads to their research might be different from the reality of farmer credit needs.Based on the above background,this study will investigate the factors affecting the farmer credit needs from the perspective of different farmer credit needs.The main research contents are as follows:(1)Starting with the existing domestic and foreign research findings,based on the theories of Rational Farmers and Moral Farmers,Financial Repression and Deepening,Social Capital define the concepts of the new farmer,formal and non-formal finance financial.All this will lay the theoretical foundation for the study.(2)Theoretical analysis the factors affecting the farmer credit needs.(3)According to the survey results of Fujian 355 farmers(especially new farmers),analysis the characteristics of the farmers,including their own characteristics,family-run and macro-financial environment,and try to explain the relationship between the characteristics of the sample farmers and farmer credit needs.(4)In order to accurately know the heterogeneity of farmer credit needs,the study divide the sample farmers into A,B groups based on the 2013 rankings of net income per capita and sample distribution.Group A include Xiamen,Quanzhou,Fuzhou,Zhangzhou,Putian.Group B include Longyan,Sanming,Ningde,Nanping.Quanzhou,Fuzhou,Zhangzhou,Putian.Using the descriptive statistical method analysis the differences about credit scale,credit application,credit period,credit mode,credit cost between A and B.(5)Having the formal credit needs or not is the explained variable.Farmer's gender,age,education level,income level and so on are the explanatory variables.Using binary logit models significant test the factors of farmer's formal credit needs respectively for A and B samples.And the study also analysis and compare the influencing factors between the two samples.The main research conclusions are as follows:(1)There is a big difference between the farmer's educational level,village cadres,housing area,income level,management type and so on.For example,the average annual income below 50,000;50,000-100,000;10,000-20,000 and above 200,000 respectively accounts for 18.9%,43.1%,24.2%,and 13.8%.The gap between income levels becomes large,and is no longer confined within a certain range.(2)There is also a big difference between the two group in credit scale,credit application,credit period,credit mode,credit cost.(3)The empirical results show that:the significant factors affecting A samples comprise whether the village cadres or not,social capital net and social capital trust;the significant factors affecting B samples comprise educational level,income level and acquisition about the loan policy.The factors affecting A and B are significantly different.Possible reasons are that the two samples' characteristics,credit needs and financial environment are different.According to the research conclusions,we make policy recommendations from three views to improve the current financing environment:firstly,government should build a sound rural financial market,financial services system and carry out differentiated credit support policy;second,financial institutions should innovative mortgage collateral type and simplify credit program;thirdly,farmer should enhance knowledge and skills training,improve financial quality and establish farmer credit files.The innovation of this study is that the starting point is farmer different credit needs and the assumption is farmer non-homogeneity.The study also emphasizes farmer's characteristics,geographical space,economic conditions and other factors led to the farmer credit needs different.But limited to the time and budget costs of this investigation,the study failed to carry out random sampling in the province,which may affect the results of this study.