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Abstract

Currently, there are many problems requiring to be solved urgently in the rural economic development in China, including farmers’ difficulties in getting loans, difficulties in agricultural financing of small and medium-sized enterprises, disconnection of funds chain and serious information asymmetry. The roots of these problems are inadequate financial support and single as well as backward service pattern. The development of rural economy and improvement of farmers’ life depend in large measure upon rural financial service system. Rural financial business system in western developed countries mainly consists of policy finance, cooperative finance and commercial finance[1]. Development of land finance provides powerful fund circulation for rural finance. Western countries have relatively advanced legal systems and policies for rural financial support with land mortgage and land guarantee as the main methods, which can be used as reference, such as construction of rural financial system, innovation of rural financial service as well as supervision and control of rural financial risks. Through introducing relevant features of foreign farmland finance, this article discusses service innovation in the reform of China’s rural financial system.

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