Abstract：While Chinese rural-household differentiation and farming production and management model change rapidly, micro-loan model would not keep pace with the development of the agricultural industry. By the transaction relationship among participants, the insurance services and the government’s leading force, the agricultural value chain finance achieves innovations in agricultral finance. Based on two typical cases of ‘Wuliming Model’ and ‘Six-party Cooperation and Insurcane Model,’ this paper sums up Chinese agricultrual value chain finance’s background, opertation mechanisms, discusses its theoretical implications from five perspectives of the profitibility, transaction cost, risk control, mortgage guarantee, and the role of the government, and lastly rethinks the limitation of three existing rural finance research paradigmes in instructing agrircultural credit policies.
Keywords: Agricultural Value Chain Finance, Interlinked Transaction, Mortgage Guarantee; Agricultural Insurance
source:Finance & Trade Economics ,No8,2013