Study on the causes and preventive measures of rural credit unions’ departure from farming

School of Economics and Trade, Henan University of Technology, Zhengzhou, China

^* Corresponding author: hxy1342438651@163.com

Abstract

Over the years, rural credit unions have always played an important role in serving the “three rural areas” and have played a good role as the main force in “supporting the micro and helping the farmers”. However, in recent years, the profit-seeking nature of rural credit unions and the development constraints of the “three rural issues” have made the tendency of rural credit unions to leave agriculture and commercialization more and more obvious, and credit funds are increasingly flowing from rural areas, farmers and agriculture to cities, enterprises and other industries, which greatly reduces the effect of supporting agriculture. This not only promotes the emergence of rural financial exclusion, but also weakens the function of rural credit unions to serve and support the economy of the “three rural areas”, which ultimately restricts the economic development of the “three rural areas”. This paper briefly analyzes the characteristics, effects, causes and preventive measures of rural credit union’s departure from agriculture, starting from the performance of rural credit union’s departure from agriculture.