Conversion Of Farmers' Production Mode And Financing Choices Under The Background Of Farmland Circulation

China has always been based on traditional agriculture,and the development of rural economy is vital in the whole national economic development.With the rapid development of economy,the national comprehensive strength and people's living standard have improved significantly,but the income gap between urban and rural areas is growing,three dimensional rural issues is more and more prominent,rural finance has become the main limitation of national economic development.At the same time,the government loosen land grip and encourage the farmland circulation.The market of management right of rural land transfer is not a closed independent market.The development of farmland circulation market is closely related to the development of rural financial market.For farmers,farmland circulation not only represents the substitution of internal factors' production,but also a huge change in the production model.Therefore,it is of theoretical significance to study the change of farmer's financing choice from the perspective of the change of agricultural production.This paper finds out the relationship between the change of farmers' production mode and farmers' financing choice through establishing mathematical model.With the increase of the farmers' circulation area,the total farmland area is expanded,the farmer changes the production mode and carries on the market-oriented and specialized agricultural production activity,thus it leads to the increase of the farmers' financing demand.At the same time,while improving the farmers 'credit acquisition,it also has a profound impact on the farmers' choice of financing channels and credit contracts.Therefore,under the background of farmland circulation,this paper studies the relationship between farmland circulation and farmers' financing choice from three aspects: financing demand,financing channel choice and financing contract.Firstly,in farmers' financing needs.Because farmland circulation intuitively caused the expand of the farmland's operating area and the change of the traditional agricultural production mode,farmer begin to market-oriented agricultural production,it inevitably needs to increase agricultural production investment such as human and material resources,it increase farmer's production financing needs;Secondly,in the farmers' financing channel selection.Farmers change the production mode and enhance the importance of capital elements through farmland circulation,there is not only a huge demand for productive financing,but also have the demand from the consumer demand into productive dema nd.At the same time,with the increase in farmer income and anti-risk ability,farmers are more inclined to choice the formal financial institutions.Thirdly,in the farmers' financing contract.The form of financial intermediaries corresponds to the form of financing contract.since financing channels have turned to formal institutions,they tend to sign formal contracts from objective and subjective intentions.Debit side and credit side need a third party's enforcement mechanism to protect their interests and punish the default risk of the trading partner.The main conclusions of this paper are:Firstly,similar to the conclusion of most domestic and foreign scholars,this paper establishes a econometric model to verify the positive correlation between the change of farmers' production mode and agricultural financing demand.Farmers change the production mode,the demand of agricultural production funds is higher and the likelihood of agricultural financing needs is higher after farmland circulation.Secondly,through the theoretical and empirical analysis,this paper argues that farmers change the production mode,it promotes deepening of capital and the demand for high-quality financial services in the context of farmland circulation.It makes possible for farmers to get formal finance support.Thirdly,after farmland circulation,farmers change the mode of production,and it makes farmers more likely to choose formal financial finance,it sho uld sign a more standardized formal financial contract to guard against risks.