Research On The Development Of Mutual Fund Business Of Farmers’Professional Cooperatives

The 19th National Congress of the Communist Party of China put forward the rural revitalization strategy.By 2020,China’s rural areas have basically achieved the goal of poverty alleviation,but the rural revitalization strategy has not been completely completed.Under the current household contract responsibility system,how to meet the financial needs of individual farmers in the operation process is an important aspect of realizing the rural revitalization strategy.However,for individual farmers,due to their decentralized operation,under the action of the current market mechanism,they face great business risks in the face of the constantly changing market.In the current situation,farmers cannot earn more from farming alone,diversification is risky,and most importantly,farmers cannot get the capital they need to diversify.For a long time,the income gap between urban and rural areas has been widening,the loss of rural human capital and the flow of rural capital to cities are the reasons that can not be ignored.In the current rural financial system,rural commercial banks,rural credit cooperatives and other financial institutions,as the main body of market operation,are more willing to cooperate with cities and enterprises that can make profits under the role of the market mechanism.Due to the lack of collateral for farmers’ families(contracted land and farmers’house mortgage,once there is a risk,the bank is difficult to liquidate),as well as the small scale,incomplete information and other reasons,various financial institutions are reluctant to lend to farmers.As a result of the difficulty in obtaining loans,farmers’ money in the bank flows to the cities instead of being used for the development of the countryside itself,thus further widening the gap between urban and rural areas.This paper starts with the empirical test,through the relevant data of China financial yearbook and Shandong financial yearbook,analyzes the degree of capital outflow on the urban-rural income gap,the results show that the degree of capital outflow is significantly positive correlation with the urban-rural income gap,the more capital outflow,the greater the urban-rural income gap.Therefore,we further consider that,under the background of household contract responsibility system,how to solve the problem that farmers cannot easily obtain the required operating funds from financial institutions due to their small scale,high risk and information asymmetry with financial institutions.Through investigation,we found that the mutual fund business under the farmers’ professional cooperatives is a good solution.As one of the new forms of rural cooperative finance,it realizes the combination of weak and weak by relying on cooperatives,realizes the mutual support of funds within cooperatives,and carries out cooperative operation by relying on cooperatives for business development,so as to overcome the problems of low income and high risk of operation of individual farmers.In recent years,there are many rural cooperatives that carry out mutual fund business in various forms throughout the country,but due to their small size,no complete system and theoretical support,none of them have continued healthy development.Introduced in 2015,the central policy,in Shandong province formally to carry out the farmers’ professional co-operatives funds under the mutual pilot work of the business,we are the pilot work of some demonstration village has carried on the key research,this article through to the field investigation,in the perspective of political economics on cooperative related cooperation on the basis of theoretical analysis,Focuses on the pilot and other financial situation,especially under the farmers’ professional co-operatives of other economic situation,comparing the existing advantages and disadvantages analysis of the advantages and existing problems,and connecting with the cooperation theory and practice of economic development under the background of the existing system is given how to complete the development and farmers’ professional co-operatives funds under the mutual business related policy Suggestions.Theoretical part,in the third chapter,we analyzed the related theory,elaborates the basic theory of mutual funds business,at the same time of rural cooperative finance and the related theory of mutual funds operations were analyzed,and emphasized the importance of mutual business development funds as well as the urgency,as well as the perfect capital mutual business as well as to provide theoretical support to the national promotion.The innovation of this research has two points:first,this paper analyzes the impact of capital outflow on the income gap between urban and rural areas from the perspective of measurement test,demonstrates that the current rural financial system does not meet the needs of farmers’ development,and proposes the necessity of developing new rural cooperative finance;Secondly,from the perspective of cooperation theory and institutional change theory,the paper analyzes the development status and reasons of mutual fund business under farmer professional cooperatives through field investigation of pilot villages,and gives relevant suggestions.Finally,we put forward policies and propositions for developing mutual fund business from the aspects of financial market,cooperatives themselves,external risk prevention and personnel training.