Research On The "Government Bank Guarantee Agriculture" Cooperation Model To Solve The Financial Dilemma Of Agriculture,Countryside And Farmers

Facing the long-standing challenges brought by difficulties of financing for agriculture,rural areas and farmers,including the cost and slowness,government financing guarantee institutions emerged to solve relevant problems in a broader inclusive area.The main bodies of “agricultural,rural areas,and farmers” are hindered from development as they lack symmetric information from its major fund source,i.e.,banks,and therefore challenged in capital accumulation.Guided and supported by the government,the guarantee institutions function as an intermediary to increase the credit for the borrower while sharing risks for the loaner.A quasi-public product in a market economy,those institutions should work with the government,through its market intervention and resource allocation process and jointly make effort to support the sustainable development of the financing guarantee industry.When a government-funded guarantee institution takes part in the financing process of“agriculture,rural areas,and farmers,” it actually involves in four parties: the institution,the agricultural body,the bank,and the government.It is necessary to analyze the current situation,relationship,and challenges amid the four parties,and thus to explore the potential cooperation modes between them to solve the financing difficulties in the agricultural context.This article starts with the current situation of financing of "agriculture,rural areas and farmers",analyzes the services provided by banks,government financing institutions,and the government.By studying the correlation,influence,challenges and relevant policies among the four parties and theoretically looking into the supply and demand structure,the article explores a potential cooperation mode for the four participants and evaluates the possibility of a smoother coordination mode through horizontal and vertical cooperation.It also examines different roles of the government,banks,government-funded financing institutions,and the “agriculture,rural areas,and farmers” body under the mode,striving to alleviate the financing difficulties in this area and ensure a healthy growth.