Research On Farmers' Financing Decision In Supply Chain Environment With E-commerce Platform's Participation

Under the traditional bank credit model,due to the lack of collateral and high credit risk,farmers have long faced difficulties in financing,which is one of the important factors hindering the development of rural economy.With the rising of supply chain production model and e-commerce,the development of agricultural supply chain has provided a breakthrough for solving farmer's financing difficulties effectively.The government,industry and scholars are actively promoting the application of supply chain finance and e-commerce in rural areas.For example,the state vigorously promotes e-commerce in rural areas to promote agricultural product sales and promotes supply chain finance to guarantee adequate capital to expand agricultural production and realize rural-enterprise interconnection and promote the upgrading of the agricultural industry structure.Therefore,it is of great theoretical and practical significance to study the supply chain financing decision of e-commerce participation and use it to solve the production decision-making problem of farmers.Most of the research on supply chain production and financing decisions are based on the assumption that banks are in a completely competitive environment and the relationship between upstream and downstream enterprises in the supply chain industry of the wholesale price contract.Few articles considers the dual functions of the e-commerce platform with sales channel services and financing guarantees.Considering that agriculture is a typical output uncertainty industry,most supply chain articles focus on supply chain coordination and risk sharing decisions of upstream and downstream enterprises in the agricultural supply chain.There are few articles involved on the the impact that farms make production effort to the uncertain production.Therefore,based on the basic theory of supply chain finance,this paper focuses on the management decision of farmers from the perspective of operation management,taking into account the limited endowment constraints of farmers' own funds,and studying the game interaction of e-commerce,farmers and bank.This paper specifically solves the problem of production financing decision-making of farmers under different financing modes,the setting of nominal interest rate of banks and the setting of service rate of e-commerce platform;the trade-off of guarantee decision of e-commerce platform under guarantee financing;the factors affecting the production enthusiasm of the farmers(expected production volume and production effort)in the case of output uncertainty.First of all,this paper reviews the relevant theories of supply chain finance,including the notation,characteristics,operation mode of supply chain finance and its specific application in agriculture.Secondly,this paper compares and analyzes the optimal decision-making behavior of the supply chain under the centralized decision-making mode and the decentralized decisionmaking mode.The decentralized decision-making mode are divided into three modes: bank-led,e-commerce-led and e-commerce-platform-guaranteed.The research results show that the financial constraints make the situation of the farmers worse than the situation without funds.The farmers have more funds doesn't mean they will benefit from it.In the guarantee mode,the financial constraints can increase the production and profit level of the farmers.The guarantee determination is more complicated,and it is affected by the bank's expected interest rate,the farmer's own funds and the service rate of the e-commerce.The e-commerce platform will always favor the farmer's loan when the farmer is most struggling.Secondly,under the uncertainty of farmer output,a random output model of production effort affecting output is constructed and the influencing factors of farmers' production effort input are discussed.The research shows that the initial capital size of farmers does not affect the production input and production efforts of the farmers and only affect the profit of the farmers.The relationship of bank's real interest rate and the farmer's interest rate are positive.Finally,based on the theoretical model derivation and case analysis,this paper provides some advice for the decision-making of farmers and other participants.