Agricultural Finance Research Articles

Does Common Agricultural Policy Influence Regional Disparities and Environmental Sustainability in European Union Countries?

This study examines the impact of the European Union’s Common Agricultural Policy (CAP) funds, specifically the European Agricultural Fund for Rural Development (FEADR) and the European Agricultural Guarantee Fund (FEGA), on a range of economic, social, and environmental outcomes across European regions. Utilizing Fully Modified Ordinary Least Squares (FMOLS) estimators, this research analyses 13 equations corresponding to various dependent variables, including employment rates, poverty levels, agricultural productivity, and environmental indicators such as greenhouse gas emissions and renewable energy production from agriculture. This analysis covers the period from 2010 to 2021, and draws upon a balanced sample of 301 observations to ensure robust estimations. Results indicate that both FEADR and FEGA payments significantly influence these regional outcomes, though the effects vary depending on the specific economic or environmental indicator examined. The findings reveal that while FEADR payments positively impact rural employment, agricultural income, and renewable energy production, they are less effective in addressing poverty reduction and productivity enhancement. Conversely, FEGA payments exhibit a stronger influence on agricultural productivity and income, but have mixed effects on environmental sustainability. This study highlights significant regional disparities, suggesting that the allocation of CAP funds is uneven in its impact across regions. The implications for policymakers are clear: a more tailored approach is required to enhance the effectiveness of CAP funds in meeting diverse regional needs, particularly in promoting economic development while minimizing environmental harm. This study also emphasizes the need for further research to explore alternative policy mechanisms and innovative agricultural practices that can bridge the gaps identified in the current CAP framework. Limitations of this study include data availability and the inherent complexity of agricultural systems, which may affect the generalizability of the results across different EU member states.

Enhanced Agricultural Financial Services through Cloud Computing: A New Paradigm of Security and Efficiency

The agricultural sector has long faced significant challenges in accessing efficient and secure financial services, hindering its growth and sustainability. This study investigates the transformative potential of cloud computing in enhancing agricultural financial services, with a particular focus on improving security and operational efficiency. Through a comprehensive literature review and the development of a multi-dimensional security framework, the research explores the integration of cloud technologies in agricultural finance. The framework addresses physical, network, application, and data security aspects, tailored to the unique challenges of rural environments. A detailed case study of AgriBank’s implementation of a cloud-based agricultural financial services platform provides empirical evidence of the benefits and challenges associated with this technological shift. The results demonstrate substantial improvements in key performance indicators, including a significant reduction in loan processing time, enhanced credit risk assessment accuracy, and a notable increase in the agricultural loan portfolio. The study also highlights the importance of addressing rural-specific issues such as intermittent connectivity and varying levels of digital literacy. The findings contribute to the growing body of knowledge on financial technology applications in agriculture and offer valuable insights for policymakers and financial institutions seeking to leverage cloud technology to enhance their agricultural finance capabilities. This research underscores the potential of cloud computing to foster greater financial inclusion, promote sustainable agricultural development, and ultimately contribute to global food security.

Leveraging financing technology for sustainable fresh agricultural products financing in Indonesia

Financial technology (fintech) offers farmers the prospect of getting other sources of finance apart from financial assistance from the established official funding institutions. Farmers of fresh agricultural products (FAP) in Indonesia received financial offers from various fintech platforms. However, several platforms have failed to maintain their operations, resulting in negative consequences for the farming activities. This study’s objective is to explore how fintech contributes to the sustainability of FAP by examining five key dimensions of sustainability: economic, social, environmental, technological, and institutional. Most extant literature primarily examines the determinants that impact an individual’s interest in fintech lending. However, the existing research needs to dedicate more attention to the sustainability of the platform and the enterprises it finances, with a particular emphasis on the FAP sector. A quantitative methodology was utilized to design the study, and a proportional stratified random sampling method was employed to select 269 FAP producers as respondents. The data were analyzed using the multidimensional scaling (MDS) approach in rap-Agrifin using factors specifically designed to assess fintech sustainability in agribusiness. Fintech in the FAP supply chain is classified as quite sustainable, according to this study’s multidimensional finding. Partially, the dimensions that acquire sufficiently sustainable value are the social, economic, and environmental dimensions, but the technological and institutional dimensions are less sustainable. This research demonstrates that the MDS approach in rap-Agrifin can effectively analyze sustainable finance in agriculture, highlighting the need for focused improvement on institutional and technological factors, particularly through the application of fintech.

Climate-Smart Agricultural Finance (CSAF): A model for sustainable investments in agriculture

Climate-Smart Agricultural Finance (CSAF) integrates environmental risk assessments into agricultural lending models to promote sustainability and climate resilience. This paper explores the significance of CSAF in mitigating climate-related risks, improving farm productivity, and enhancing long-term economic stability for both farmers and investors. It outlines the mechanisms through which CSAF promotes sustainable agriculture, such as the use of green bonds, sustainability-linked loans, and carbon credit financing. Additionally, it analyzes the benefits of CSAF, including improved climate resilience, risk mitigation, and financial returns for investors. The paper concludes with recommendations for improving CSAF models, emphasizing financial inclusion, enhanced data collection, and public-private partnerships to promote wider adoption. CSAF offers a promising path toward building a more sustainable and resilient agricultural sector in the face of climate change.

Optimists, moderates and sceptics – identifying consumer groups and their willingness to consume cultured proteins in Finland

PurposeIt is suggested that the detrimental externalities of intensive livestock production can be reduced by manufacturing animal proteins with cellular agriculture technologies. This study explores consumer attitudes towards cultured proteins based on representative Finnish survey data (n = 1,452).Design/methodology/approachSum variables from the principal component analysis were utilized in the cluster analysis to identify potential consumer groups of cultured proteins in Finland. A regression analysis was used to find out the explanatory factors of positive first reaction, willingness to taste, willingness to use and support for the establishment of a national cultured meat sector.FindingsMost of the respondents (72%) would taste cultured products, but attitudes of optimists (n = 516), moderates (n = 479) and sceptics (n = 457) differ in terms of the environment, livestock farming and cultured proteins. Most optimists (77%), almost quarter (23%) of moderates and less than a fifth (18%) of sceptics support cultured proteins. The environmental concerns are shared by optimists and moderates, whereas moderates and sceptics tend to be more suspicious. Positive attitudes are significantly influenced by social norms and respondents' beliefs regarding their global and national benefits. Major concerns pertain to anticipated dictation force of big companies, negative effects on Finnish agriculture, product attributes, use of genetically modified organisms and experienced (un)naturalness of cultured foods.Originality/valueThis study contributes to the understanding of Finnish consumers' attitudes towards cultured proteins. The identification of potential consumer segments and the elucidation of their attitudes are relevant, given the anticipated acceleration in the development of cultured foods.

Does financial inclusion enhance farmers' resilience to climate change? Evidence from rural Ethiopia

AbstractFinancial inclusion is recognized as a vital driver of sustainable development and serves as a fundamental pillar of climate action. It is crucial to enhance the climate resilience of smallholder farmers in the face of severe and unpredictable climate shocks, which disproportionately affect them. However, the level of financial inclusion in Ethiopia remains low, and its impact on the climate resilience of smallholder farmers has not been thoroughly examined using rigorous model and comprehensive dataset. This study investigates the impact of financial inclusion on the climate resilience of rural households, using a large data set from the Ethiopian Socio‐Economic Survey. The principal component analysis was applied to construct a climate resilience index. The financial inclusion was measured using an index that encompasses three dimensions: penetration, availability, and usage. In order to address the endogenous nature of financial inclusion, an instrumental variable approach was employed, using the distance to the nearest financial institution and religion as instrumental variables. The results demonstrated a positive and significant impact of financial inclusion on the climate resilience of rural households. Therefore, the government should strengthen the provision of essential financial and related infrastructures in rural Ethiopia to improve access to financial products and services. Furthermore, it is essential for policymakers to initiate and implement financial sector reforms that ensure the availability of affordable and tailored financial services. These reforms should also prioritize the development of climate‐resilient agricultural finance, thereby contributing to the achievement of climate action goal of sustainable development.

The Impact of Microfinance on Community Welfare: A Bibliometric Analysis and Systematic Literature Review (SLR)

ABSTRACT Over the years, microfinance programs have been the major strategy of many developing countries to improve people’s welfare and reduce poverty. Yet several studies on the welfare impacts of microfinance result in contradictory conclusions. While some studies support the mainstream view that microfinance improves the welfare of the unbankable poor, others criticize its limited effect on business development and weak impact measurement methods. This study analyzes 409 articles to bridge the empirical gaps between mainstream and critical views of microfinance impacts on society through synthesizing major themes in existing research and their interconnections and provides recommendations for future research. Using bibliometric and systematic literature review (SLR) approaches, this study found five clusters of empirical research on microfinance impacts, including entrepreneurship and poverty alleviation; self-help groups and women empowerment; financial inclusion; household income; and community welfare. The study also suggests that microfinance programs have positive impacts on welfare across countries. However, future research needs to more deeply focus on the impact of microfinance programs on agricultural finance, specifically financial efficiency, and social efficiency.

Determinants of Microfinance Demand (Evidence from Chiredzi Smallholder Resettled Sugarcane Farmers in Zimbabwe)

Despite the MFI insurgency, agricultural financing remains critically low, even though microcredit is widely accepted as both a substitute and compliment to formal credit. Zimbabwe is an agro-based economy and very little is known about the determinants of microcredit demand and microcredit size in smallholder resettled sugarcane farmers. Research is concentrated in short-term agriculture activities. Thus, this study aims to fill the unattended gap in lagged returns agriculture activities such as sugarcane production which takes at least a year to mature, hence, the greater need for agriculture financing alternatives such as microfinance. The study examined the determinants of both microcredit demand and loan size (magnitude of microcredit participation) by smallholder resettled A2 sugarcane farmers in Chiredzi. Primary data from 370 smallholder resettled sugarcane farmers (214 borrower participants and 156 non-borrower participants) were used. Probit and Tobit regression models were used for data analysis in STATA. Operational costs, interest rate, grace period, and land size significantly affect both the demand for microcredit and microcredit size, while education, household farming assets, extension services, and payback period significantly affect microfinance demand, and risk attitude/perception additionally determine microcredit size. Special microfinance schemes best suitable for the agriculture sector and crop/plant-specific agriculture financing schemes, currency, and macroeconomic stability are the major policy recommendations.

Bridging India's Financial Divide: The Power of Artificial Intelligence and Machine Learning

Artificial Intelligence (AI) and Machine Learning (ML) are transforming India's financial sector, enhancing decision-making, risk assessment, and personalized services. They extend financial services to underserved populations through scalable solutions like digital lending and mobile banking, fostering financial inclusion and bridging urban-rural gaps. Notable progress has been made through initiatives like the Pradhan Mantri Jan Dhan Yojana (PMJDY), which opened over 53 crore accounts by August 2024. However, challenges such as low literacy rates, inadequate digital infrastructure, and a large informal economy persist. AI and ML address financial inclusion gaps by automating KYC processes and improving onboarding through facial recognition and identity verification. Initiatives like Aadhaar provide digital identities, enhancing access to banking. ML algorithms expand financial access by analyzing alternative data for credit scoring. Companies like Lenddo and Tala leverage ML for loans, and AI revolutionizes fraud detection by analyzing transaction data in real-time. AI integration with digital payment platforms like UPI has transformed India's financial ecosystem, processing over 15 billion transactions monthly by August 2024 (NPCI). AI-driven micro-lending platforms like Capital Float and Aye Finance address a $380 billion credit gap (BCG) by assessing creditworthiness using alternative data. AI-driven chatbots and financial products tailored to rural customers improve financial literacy and services. In agricultural finance, AI introduces lending models and enhances crop insurance through satellite data and weather patterns. Programs like PMFBY and companies like Skymet use AI for faster claims processing. AI-driven solutions in RegTech simplify compliance and improve fraud detection. Fintech collaborations and government initiatives like IndiaStack, Aadhaar, and DigiLocker promote financial inclusion. Overcoming barriers like infrastructure challenges, data privacy concerns, and AI bias is essential for leveraging AI to provide equitable financial services in India. The constructive interaction between AI and blockchain further enhances financial inclusion, creating a secure, transparent ecosystem that drives economic growth and social well-being.

Định hình lại tài chính nông nghiệp Việt Nam hướng tới phát triển bền vững

This paper analyzes the current state of agricultural finance in Vietnam, identifies major challenges, and proposes solutions for sustainable development. The results show that small-scale farmers face difficulties in accessing capital and applying technology due to a lack of collateral, low income, and limited skills. Although supportive policies have had positive impacts, they are insufficient. The study suggests developing new financial products, increasing support, enhancing skills, and integrating global financial models to help the agricultural sector better adapt to the challenges of international integration and climate change.

Informal Credits in India’s Agriculture Sector: Debt Incidence, Size and Distribution across Major Farm-size Groups

Until recently, studies on agricultural finance in India mostly focus on farmers’ access to formal credits, thereby largely sidelining their informal borrowings. This study makes an effort to present an analysis of farmers’ informal debts and their distribution across the major farm-size groups in India. The study uses unit-level data from the 77th round ‘Situation Assessment Survey (SAS)’ of agricultural households conducted by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MOSPI), Government of India (GOI), during January–December, 2019. Data were collected for the reference period of July 2018–June 2019. We use descriptive statistics and multivariate regression procedures for analysis. Results show that about one-half of the borrowers continue to depend on informal credit sources—partially or fully. Informal sources also account for about one-third of the total debt of the agricultural households. Informal debt incidence (IDI) and informal debt share (IDS) are found to be higher among the smallholders. Our findings are imperative of policy measures to improve the current state of the antecedents of formal credit access to benefit the otherwise high default risk and credit-rationed smallholders. Future studies may focus on formal credit rationing, informal credit terms and repayment burden of the agricultural households in India.

Agricultural Financing and Agricultural Output in Nigeria: An ARDL Approach

This study analyzes the impact of agricultural financing on agricultural output in Nigeria from 1991 to 2022. Employing an Autoregressive Distributed Lag (ARDL) model, the research examines the effects of government capital expenditure, commercial bank credit schemes, and the agricultural credit guarantee scheme (ACGS) on agricultural output. The findings indicate that both government capital expenditure and ACGS positively and significantly influence agricultural output in both the short and long run. Commercial bank credit schemes also have a positive and significant impact, although some studies report this effect as positive but not statistically significant. The study highlights the crucial role of financial support in boosting agricultural productivity and offers policy recommendations to improve agricultural financing mechanisms. These include increasing government investment, enhancing credit schemes, and strengthening the ACGS to ensure sustainable agricultural growth and economic development in Nigeria.

HARVESTING INSIGHTS: THE ROLE OF ARTIFICIAL INTELLIGENCE IN TRANSFORMING AGRICULTURAL FINANCE

The intersection of artificial intelligence (AI) and agricultural finance has emerged as a transformative force in enhancing the efficiency and sustainability of farming practices. This review article explores the multifaceted applications of AI technologies in agricultural finance, focusing on credit scoring, risk assessment, and financial decision-making for farmers and agricultural businesses. We examine the integration of machine learning algorithms and big data analytics in providing tailored financial products, enabling precision agriculture, and improving access to credit in under banked communities. By synthesizing current literature and case studies, we identify key challenges and opportunities, such as the need for data security, transparency, and the democratization of AI tools in rural finance. Furthermore, we discuss the potential of AI to address climate change impacts on agriculture and its implications for financing sustainable practices. This article aims to provide stakeholders in the agricultural finance sector—policymakers, financial institutions, and technology developers—with a comprehensive understanding of how AI can drive innovation and improvement in financing agricultural activities, ultimately fostering a resilient and sustainable food system.

Al-Qisth Based Agricultural Profit-Sharing in Syirkah Al-Mudharabah

This study aims to examine the application of profit-sharing al-qisth-based agriculture in syirkah al-mudharabah in Bone Regency. This type of this study is qualitative descriptive using a phenomenological approach to describe the meaning of welfare for farmers through the implementation of a fair syirkah al-mudharabah contract with the stages of determining the scope of the phenomenon, compiling a list of questions, collecting data, clusters of meaning, describing the essence, and reporting. The source of data in this study is the owner farmer and land management farmers. Methods of data collection using the method observation, interview, documentation, and reference search. Then processing techniques and data analysis is carried out through three stages, namely data reduction, data presentation, and drawing conclusions.The results of this study indicate that the concept of agricultural profit sharing is practiced by farmers in Bone Regency, namely 1/2 if the seeds are borne by the owner or 1/3 if the seeds are borne by the manager. Share the results divided after spending the costs incurred during the contract ongoing, the profit sharing portion of bage dua and bage tellu has been considered fair by each party, this depends on how big the capital contribution is given, namely the party that contributes more capital, the greater the benefits to be gained. As a suggestion from this research, it is expected that the government or Islamic financial institutions can adopt this profit-sharing system as a model to facilitate more equitable agricultural financing and cooperation in rural areas.

Nonlinear associations and threshold effects between agricultural industrial development and carbon emissions: insights from China

Abstract With the inevitability of global climate change, it has become increasingly important to understand the relationship between Agro-industrial Development (AID) and Agricultural Carbon Emissions (ACE) to promote the development of low carbon production in agriculture. Using a panel of datasets, as based on the ‘element-structure-function’ framework of 30 Chinese provinces over the period from 2011–2021, the entropy weight method was used to calculate the level of AID in each province. With this approach, it was possible to assess correlations and mechanisms between AID and ACE. Here, with use of fixed-effect, regulatory and threshold models, we determined some of the critical factors contributing to the effects of AID and ACE. Our findings revealed: (1) AID displays an inverse U-shape relationship with ACE, as verified through endogeneity and robustness assessment, (2) A review of the mechanisms suggests that the crossing of the turning point of the inverted u-curve can be accelerated by the moderating effect of agricultural finance. and (3) As based on the threshold effect analysis, a two-tier effect of the digital economy, rural human capital and farmers’ net income on AID, with facilitating effects on carbon emission reductions was obtained after the threshold crossing. The significance of this effect increases as a function of the post-threshold interval. Taken together, these findings demonstrate the long-standing interplay between AID and ACE. Thus, additional insights and empirical evidence that can inform the ongoing development of sustainable agricultural practices can be realized.

On the empirical nexus of agricultural credit facility scheme and agricultural output dynamics in Uganda

The role of the agricultural sector in economic growth cannot be overemphasized. Agriculture is basically one of the key sub-sectors that enhance economic growth in all economies of the world. Since no sector of the economy can grow without enough capital, agricultural credit is considered as imperative for improved agricultural output. To contribute to knowledge in this regard, this study examined the impact of agricultural credit fund (ACF) on agricultural output in Uganda using quarterly data from 2009 to 2021. By employing the Autoregressive Distributed Lag (ARDL) framework, the results revealed that ACF has no significant effect on agricultural output in Uganda in the short run, but it significantly has positive effect on the sector in the long run. We control for economic growth, proxied by gross domestic product (GDP), interest, inflation, and exchange rates and find that exiting level of GDP, spurred agricultural output, while the rate of interest and inflation retard agricultural productivity (output), especially in the long run in Uganda. We recommend that the government of Uganda needs to increase agricultural financing through the credit facility scheme for further productivity of the sector.

Microcredit via digital innovation platforms: its drivers and impact on fish farms' yield and income in Nigeria

PurposeFish farmers in Africa often operate on small-scale culture units, primarily due to poor access to funding and low technology adoption. Digital innovation platforms seek to enhance farmers’ access to finance, production and farmers’ income. However, there is a lack of empirical evidence to support these claims. Therefore, this study investigated the factors influencing fish farmers’ access to microcredit from digital innovation platforms and the impact of this microcredit on fish farms’ yield and income in Nigeria.Design/methodology/approachA mixed-methods approach was adopted, and data were gathered from 387 fish farmers through a well-structured questionnaire and focus group discussion. The data were analyzed using probit regression and instrumental variable two-stage least squares regression.FindingsThe results revealed that ownership of smartphones, awareness of digital agricultural innovation platforms, farmers’ education, income, fish farming as a primary occupation, cooperative society and extension contacts positively influenced farmers’ access to microcredit from digital innovation platforms. The age of farmers and household size negatively influenced their access to digital microcredit. Digital microcredit positively and significantly impacted fish farms’ yield and farmers’ income.Practical implicationsDigital microcredit significantly increased fish farm yield and income. Therefore, digital innovation platforms should be encouraged and promoted through the creation of awareness about their ability to solve inadequate financing in agriculture by agricultural extension agents.Originality/valueThis study contributes to our understanding of the influencing factors for farmers accessing digital microcredit and how digital microcredit enhances farm yield and income.

VIKSHIT BHARAT @ 2047: PATHWAY TO SUSTAINABLE AGRICULTURE DEVELOPMENT IN INDIA

India’s economic growth is projected to reach 8.2%in 2023-24(National Statistical Office).It is to be ranked fifth globally in terms of GDP and third in Purchasing Power Parity (PPP) in 2024. The IMF estimates that India’s GDP will grow by 7% in 2024. As India approaches 2047, celebrating 100 years of independence, the vision of “Vikshit Bharat @2047” (Developed India) is emerging, aiming to move to a High-income status and surpass $30 trillion GDP. This study explores the role of sustainable agricultural development in achieving the vision of “Vikshi Baharat”, focusing on incorporating advanced technologies into farming practices. The study explores the potential of innovations such as Precision Farming, Biotechnology, Machine Learning and Digital Agricultural, along with Sustainable Farming Practices, Water Resource Management, Soli Health Practices and Supporting Policy. Furthermore, the study highlights the importance of Agricultural Finance and Public-Private Partnership in economic development.

Beneficiaries in the EU framework programs for research and innovation («Horizon 2020», «Horizon Europe»), European structural and investment funds

Problem setting. Nowadays, the issue of obtaining funding for scientific research, scientific and technical (experimental) developments is increasingly important. This practice is common, for example, in the EU. Many sources are offered: EU Framework Programs for Research and Innovation, European Structural and Investment Funds, etc. However, to understand the financing procedure itself, it is necessary to have some knowledge, including regarding EU legislation. First of all, attention should be focused on the terms, because this is the foundation, the alphabet. One of them is the beneficiary. It is found in many EU legal acts, but does not always have a fixed definition. Analysis of recent researches and publications. The main goal of the program or fund is to receive project funding. Foreign scholars focus their research in this area (for example, Mario J. Al Sayah, Pierre-Antoine Versini, Daniel Schertzer, Olatz Ukar Arrien, Marta Enciso-Santocildes). This situation is due to the fact that they have more modern and updated research infrastructures than Ukraine. Terms remain beyond their attention. However, there are isolated works with only the mention of the term in the issue without any analysis of it (for example, Glybko S., Kokhan V.). Purpose of the research is to clarify the term «beneficiary» in the EU Framework Programs for Research and Innovation, European Structural and Investment Funds. Article’s main body. An attempt is made to conduct a comparative analysis of the considered term in the EU Framework Programs for Research and Innovation («Horizon 2020», «Horizon Europe») and the European Structural and Investment Funds. Each of them has its own EU legal framework. However, only Regulation (EU) № 1303/2013 of the European Parliament and of the Council of 17 December 2013 laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund and repealing Council Regulation (EC) № 1083/2006, defines the term «beneficiary». Regulation (EU) 2021/695 of the European Parliament and of the Council of 28 April 2021 establishing Horizon Europe – the Framework Programme for Research and Innovation, laying down its rules for participation and dissemination, and repealing Regulations (EU) № 1290/2013 and (EU) № 1291/2013 refers to Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) № 1296/2013, (EU) № 1301/2013, (EU) № 1303/2013, (EU) № 1304/2013, (EU) № 1309/2013, (EU) № 1316/2013, (EU) No 223/2014, (EU) № 283/2014, and Decision № 541/2014/EU and repealing Regulation (EU, Euratom) No 966/2012, which defines the term «beneficiary». The EU Framework Programmes for Research and Innovation («Horizon 2020», «Horizon Europe») contain definitions of the types of beneficiary. It is the target final beneficiary and beneficiary of the Accelerator. The possibility of achieving synergy between the specified programs and the European Structural and Investment Funds is being investigated, if there are already differences regarding the definition of the term «beneficiary». Conclusions and prospects for the development. The author states the following conclusions according to the obtained results: EU legal acts do not contain a single vision for the same term «beneficiary». We believe that it is necessary to review this situation in order to achieve the synergy established in the Regulations (EU).

Digital Inclusive Finance Supports the Modernization of Agriculture Development

In the process of financial development, the high threshold and credit asymmetry not only increase the difficulty and cost of financing in rural agriculture, but also hinder the upgrading of agricultural industrial structure and delay the development of agricultural modernization. With the development of information technology and the wide application of big data, digital inclusive finance has become an important path and inevitable choice to promote the upgrading and modernization of China's agricultural industrial structure. The project intends to use the entropy method to measure the development level of agricultural modernization; Based on the two-way fixed effect model, the paper explores the effect of digital inclusive finance on agricultural modernization. With the help of the intermediary effect model, this paper explores the internal mechanism of the influence of the digital inclusive financial policy on the development of rural modernization from the level of "the upgrading of agricultural industrial structure". Based on the empirical results, this paper analyzes the heterogeneity of the effects of digital financial inclusion policies from the two dimensions of rural location and rural characteristics, and explores an effective path to promote digital financial inclusion and industrial upgrading in rural areas with prominent internal differences, with a view to providing reference and basis for the formulation and implementation of future digital financial inclusion and agricultural modernization development policies.