An Empirical Study Of The Impact Of "Agricultural Credit+Agricultural Insurance" Interconnection Mode On Farmers' Credit Decisions In Sichuan Province

In 2010,the China Banking Regulatory Commission and the China Insurance Regulatory Commission jointly issued the "Opinions on Strengthening the Cooperation between Agriculture-related Credit and Agriculture-related Insurance".The "Opinions" indicated that it is necessary to promote the linkage of agricultural insurance and agricultural credit in the rural financial system,so that more funds can be introduced to the countryside and the agricultural production as well as the income of farmers can be improved.This paper sorts out policy support to the interconnection of agricultural credit and agricultural insurance,and related cases of their interconnection in Sichuan Province are also included.Based on the above analysis,an “agricultural credit + agricultural insurance” interconnection mode has been constructed with government,banks,insurance companies and farmers as the main body.An information sharing mechanism is formed between banks and insurance companies through government policy guidance,while risk sharing mechanism between the insurance company and the bank is realized.After an in-depth analysis of the operating mechanism of the interconnection model,the model's intrinsic relationship with the farmers' credit decisions and its impact on farmers' credit decisions have been explored.Theoretically,it is clarified that the interconnection model can improve the allocation of agricultural credits from the bank-type institutions and guide farmers to overcome their own credit rationing from formal financial institutions to choose bank-type institutions as the source of borrowing and the loan on credit to obtain the required capital.This paper conducts a questionnaire survey on some farmers who are engaged in agricultural production from 10 villages where agricultural insurance have been promoted in Sichuan province,and collects different farmers' credit decision under ordinary circumstances and the interconnection mode.Qualitative and quantitative analysis of the impact of the interconnection mode on credit decisions are made through descriptive statistics analysis and conditional Logit regression model analysis.After the research data was paired 1:1 according to the similar land use area of agricultural production and the same agricultural production type to form the experimental group and the control group,the conditional Logit regression model analysis presented that under the “agricultural credit + agricultural insurance” interconnection mode,the farmers' credit decisions are significantly influenced.The probability of choosing bank instead of non-banking institutions or individuals to get demanding money and choosing loan on credit instead of mortgage has increased significantly.Through theoretical analysis and empirical analysis,this paper provides an effective mode for Sichuan province to speed up the cooperation between agricultural credit and agricultural insurance,promote the linkage between bank-type institutions and insurance companies,and guide farmers to use credit of bank-type financial institutions to develop agricultural production.The suggestions are put forward from the perspectives of information sharing mechanism construction,fund clearing channel construction and banking-insurance product design based on interconnection mode.