An Analysis Of The Impact Of Farmers' Characteristics On Farmers' Lending Behavior

This paper studies the impact of farmers' characteristics on the behavior of farmers' borrowing in Henan Province.China is a large population with a large population of agriculture.The number of peasants is large.The No.1 Document of the Central Committee has regarded the issue of “agriculture,rural areas and farmers” as the core for many years.To solve the "three rural issues" fundamentally,we must first ensure the orderly progress of rural financial reform.At present,in the process of constructing the rural financial system,the difficulty of borrowing by farmers is serious.It can not meet the borrowing requirements of formal financial institutions,and it also considers the safety of private lending.Therefore,if we want to fundamentally reduce the occurrence of such situations,we need to conduct in-depth discussions on the factors affecting farmers' borrowing behavior.At present,the relevant literature on this issue in foreign countries cannot fully adapt to the rural areas of China,and the existing domestic literature research scope covers rural areas in the country or only in individual villages.Then,this article will conduct an in-depth study on the characteristics of farmers and their borrowing behavior in such a large grain province in Henan Province.This paper defines the characteristics of farmers,farmers' borrowing behavior and the concept of formal lending and informal lending.Based on the characteristics of farmers,farmers' borrowing,rural finance and other theories,it is found that the difficulty of borrowing in Henan province is more common.Among them,compared with informal financial institutions,it is more difficult for farmers to obtain loans from formal financial institutions,which is largely due to the information asymmetry between the two.Therefore,this paper uses the game theory research method to explore the three modes of farmer credit loan,mortgage loan and mortgage replacement loan,and draws other signals provided by farmers,so that formal or informal financial institutions can identify repayment ability.Strong farmers can break the “prisoner's dilemma” of farmers' borrowing,and at the same time overcome the disadvantages of farmers' insufficient collateral.According to the literature review,the characteristics of farmers(including personal traits and family characteristics)conveyed the solvency of farmers to a certain extent,which has a significant impact on farmers' lending behavior.Therefore,using the micro-data of the “Hundred Counties and Thousand Villages Survey” project of the Central Plains Development Research Institute of Henan University in 2018,starting from the statistical characteristics of the database,the above theory is used to explore the current situation of the borrowing behavior of farmers in Henan Province.The analysis and summary,the cross-analysis of farmer characteristics and lending behavior,to provide a basis for the selection of explanatory variables.Based on the above analysis,we propose a research hypothesis.In order to verify the correctness of the hypothesis,this paper uses the micro-data of the “Hundred Villages and Thousand Villages Survey” project in 2018 for descriptive analysis and multi-collinearity analysis to make a background observation for the empirical.Four groups of regression analysis were conducted on the overall and formal lending behavior of farmers using the probit model,and indicators such as personal traits and family characteristics were selected to explain the factors affecting the overall and formal lending.And considering that the family housing asset index may be endogenous,the “average housing assets of the same community except for the other communities” is selected as the instrumental variable for IVprobit regression,and then it is found that there is no serious endogenous phenomenon.The original probit model regression results are more robust and reliable.The empirical analysis shows that if farmers want to get the favor of formal and informal financial institutions,they can improve their education level and improve their social status in their personal traits.When purchasing family assets,they can especially consider expanding the area of cultivated land and increasing the assets of houses.Value and value of durable consumer goods,improve asset structure,and make it easier for borrowers to obtain loans from formal financial institutions such as rural credit cooperatives when farmers need financial support.The shortcomings of this paper are: in the actual investigation process,some respondents will be reluctant to disclose the loan interest rate,the specific amount of borrowing,the borrowing channel,etc.,which leads to the lack of some data,and some of the models have greater accuracy and predictability.The influence of the control variables is not included in the scope of the study.Comprehensive theoretical analysis,descriptive analysis and empirical analysis,from the perspective of formal financial institutions and the government,explore the countermeasures and suggestions for effectively solving the difficulties of farmers' borrowing: targeted optimization of rural financial institutions;standardizing and guiding farmers to generate formal borrowing needs;A new way out for rural financial institutions.