Investigation and Analysis of the Lending Needs of Forestry Households in China: Based on Data from Zhejiang, Fujian, Guangxi, and Jiangxi Provinces

Abstract

As the collective forestry property system in China has developed in recent years, the difficulty faced by forestry households (the main managers of Chinese forests) in securing loans has received extensive attention. To address this problem, we should follow the bottom-up principle and undertake effective measures based on a clear understanding of forestry financing. Based on the results of a questionnaire, this article investigates and analyzes the credit demand in forestry households, lending channels, scaling, time limits, loan usage, and cost structures. Studies have shown that funding deficits contribute to the intense demand for loans. The salient characteristics of foresters’ credit demand indicate that such demand is typically large-scale and of long duration—particularly when compared with the credit demand of common farmers. Loans to foresters are used for production purposes and mainly come from formal financing. The structural dislocation of current forestry loan products has resulted in a demand for forestry farming credit that is difficult to satisfy. Therefore, improving the quality of credit services and optimizing loan product structures would help foresters and the Chinese forestry industry.