Farmers'Forest Right Mortgage Loan Behavior in Sanming City and Analysis of Its Influence Factors

Forest right mortgage loan is currently a new financing mode prompted by forest right system reform. It is also an important business of financial institutions in lending. This paper, based on a survey of a random sample of 484 farmer households distributed in 24 administrative villages of 12 townships of 5 counties (cities) in Sanming City, Fujian Province, studies the factors influencing demand behavior of their forest right mortgage loans and analyzes the relationship among these factors. By the Logistic Model, the result shows that determinants of demand for the forest right mortgage loan mainly include personal characters of the household head, household features and cognition of forest right mortgage. The result also shows that education level and total household expenditure have positive effects on demand for the collateral loan. The age of the household head, the number of family labor as well as household income have negative effects on demand for the collateral loan. In addition, this paper proposes some policy suggestions for further promoting forest right mortgage loan.