Financial Support for Farmers’ Cooperative Organizations --A Case of Yunan Province, China

In the paper, the status quo of the development of farmers’ cooperative organizations in Yunnan Province is introduced. And then a series of problems exist in the financial support of farmers’ cooperatives in Yunnan is analyzed, covering the unitary mainstay of credit and loan supply; inadequate credit and loan supply caused by famers’ lack of security and mortgage; farmers’ difficulties in loaning from banks or other financial institutions; single financial service, which can not satisfy the demands of farmers; the private loans are active while lacks right direction and guide; the outflow of capital in rural areas has limited the development of rural economy. In view of the above mentioned problems, countermeasures and relevant suggestions are put forward, namely increasing the subjects of the loan and credit supply and expanding the financing channels. Therefore, the spheres of business of the Agricultural Development Bank of China should be expanded. Besides, the support from Agricultural Bank of China for rural construction should be strengthened and the major role played by rural credit cooperatives in rural finance should be enforced. In addition, the innovation of financial products should be highlighted; the appearance of private financing should be allowed; financial support from the government should be increased and the preferential policies for taxes and fees should be implemented.