Research On The Farmers’ Lending And Its Impact On Income

Rural household’s loan is an important part of the “three rural issue” in China.The central document No.1 of 2010-2018 points out from different aspects that farmers’ access to loans is the main means to solve the problem of rural household income.Therefore,this paper mainly analyses how farmers get loans and how to improve their income.At the same time,China’s rural financial market development shows a diversified trend,formal and informal financial lending coexist.With the development of rural modernization,the types of operation of farmers in China are increasing,their income sources tend to diversify,and their income composition is constantly enriched.Therefore,it is of great theoretical and practical significance to study in depth the current situation of rural household’s loan,the characteristics of borrowing and the impact of borrowing on income under the new situation.Firstly,this paper combs and defines the concepts of rural household’s loan and income,expounds the rural financial theory,rural household’s economic theory,rural household’s behavior theory,financial development and income distribution theory,etc.Secondly,through the field survey of rural households in Liaoning Province,valid questionnaires are obtained,and the survey data are analyzed by descriptive statistical analysis,and the current situation and characteristics of peasant household loan are analyzed.Based on the theoretical analysis of the impact of rural household’s loan on rural household income,this paper uses regression model to test the impact of rural household’s loan on rural household income,and finally puts forward feasible suggestions.The results show that farmers’ borrowing behavior is relatively common,informal financial channels account for a large proportion of loans,the amount of loans tend to small loans,the purpose of borrowing mainly focuses on productive expenditure and the duration of loans mainly concentrates on short-term loans within one year.Formal financial institutions lending and informal financial channels lending have a significant positive impact on rural household income.According to the above analysis and test,policy recommendations are put forward,that is,to improve rural household’s own financial consciousness;to strengthen the construction of financial institutions themselves;to promote the diversification of rural financial system development;to improve the rural support system.