Impact of The Development of Rural Financial Impact on Farmers’ Income

From the long-run equilibrium relationship,the rate of economic growth in rural areas and the transfer of rural labor farmers’ income have a significant role in promoting operating income and wage income of rural households.Unreasonable lack of financial support for agriculture and their internal structure leads that it does not become a factor for promoting farmers’ income.Credit ratio of rural financial institutions has a negative influence on farmers’ income,which indicates that there is shortage of rural funds.Farmers savings rate and pre-income rural per capita net income significantly positive influence indicates there is the Threshold Effect of financial development in China’s rural areas and incomeMatthew Effect.Impulse response and variance decomposition indicates that the development of the agricultural industry increases farmers’ income.Short-term transfer of migrant labor and the household savings rate can significantly improve farmers’ income but there is a negative lag effect.Lack of rural financial institutions,credit ratios,as well as financial support for agriculture makes it hard for farmers to obtain external financial support but heavier burden on farmers.