Research On The Impact Of Mortgage Loan On Farmer's Welfare

With the gradual development of rural agricultural economy,farmers show more demand for capital input,but there is a gap in the source of capital supply for farmers,and farmers have difficulty in financing,which is not conducive to the sustainable operation of farmers and affects the improvement of farmers' welfare level.As an innovative form of rural finance,the mortgage loan of farmland management right is generated due to the trend.It can act as a mortgage when farmers borrow money from formal financial institutions,so that farmers can obtain loans and meet their capital needs,which has an important impact on the development of rural economy.Since 2008,the policy of mortgage loan for farmland management rights has been tried,developed and improved in practice,which has brought great influence to farmers.The solution of the problem of fund shortage of peasant households is not only closely related to the production and operation of peasant households and their basic living,but also has a deep impact on the pace of national agricultural development.Therefore,it is necessary to study the impact of mortgage loan on farmers' welfare.Based on the above premise,this paper firstly summarizes the classical research results of domestic and foreign scholars on the welfare impact of borrowing in rural households,the availability of mortgage loans for farmland management rights and the welfare effect,and gives a brief review.Secondly,it defines the concept of farmland management right,farmland management right mortgage loan and peasant household welfare,and expounds the theory of institutional change,distribution of production factors,rural financial market and welfare economics,as the theoretical support of this paper.Then based on the field investigation of peasant household data areas in liaoning province,the statistical analysis of basic features sample area farmers,agricultural land management rights mortgage lending activities involved in the household characteristics,participate in the household,and was not involved in the household's welfare and other characteristics on the average,and analysis of farmers on agricultural land management rights mortgage lending focus on knowledge and its impact on the farmers welfare increase of subjective perception.The results showed that the mortgage loans of farmers' farmland management rights were all from credit cooperatives or rural commercial bank.The mortgaged land area was high than 3.3333 hectares,the loan amount was more than 50,000 yuan,the loan term was less than 18 months,and the loans were mostly used for agricultural production and operation.Except for non-farm income,other incomes and expenditures of participating households were greater than those of non-participating households.Except for the difference in age,there were significant differences in other characteristics between participating households and non-participating households.More than50% of the farmers pay more attention to the mortgage loan of farmland management right and have a basic understanding;The mortgage loan of farmland management right can bring impetus to the increase of farmers' welfare,and farmers hold a supportive attitude towards this form of loan.In the empirical analysis,the impact of mortgage on farmland management right on peasant household welfare was analyzed by using ordinary least square method,treatment effect model and propensity score matching method.According to OLS regression results,mortgage on farmland management right significantly positively affected peasant household welfare.On the basis of baseline regression,the treatment effect model and the propensity score matching method were used to overcome the endogenous problem and sample selection bias,and it was found that the mortgage of farmland management rights still had a significant promoting effect on the improvement of farmers' welfare,which enhanced the robustness of the conclusion.Furthermore,the difference of the impact of mortgage loan participation on the welfare of farmers in different groups is further compared and analyzed.The promotion effect of mortgage loan participation on the welfare growth of large scale farmers is greater than that of ordinary farmers,and it has a greater impact on the welfare growth of farmers with higher education level.At the end of this paper,based on the research conclusion of this paper,the following Suggestions are put forward:(1)To the government: strengthen the legislation,launch the preferential support policy of farmland mortgage loan;To play the role of guarantee institutions;We will strengthen the basic rural security system.(2)For financial institutions:create a good rural financial transaction environment;Innovate agricultural land mortgage loan products and improve business operation process;Multi-way publicity,help land mortgage loan smooth development.(3)For farmers: understand policies,base on farmland,and promote sustainable development;Expand vision,enhance their own ability,moderate scale management;Attach importance to education and improve the quality of science and culture.