Role of agricultural credit guarantee policies in encouraging green agricultural development: farmers’ perspectives and responses, and the regulatory function of household capital

Green agriculture is anticipated to be the leading trend for achieving sustainable and high-quality development in the agricultural sector in the future. The success of credit guarantee policies in promoting green agricultural development is closely linked to the level of participation and response from farmers in securing agricultural credit guarantee loans. We examined how farmers in Xiji, Ningxia, perceive agricultural credit guarantee policies and their involvement in such loans by analyzing 706 survey responses. Our analysis utilized a combination of statistical techniques, including principal component analysis, Heckman’s two-stage model, and moderating effect model. The results indicate that out of the 706 surveyed farmers, 29.32% of households (207 households) had knowledge of the agricultural credit guarantee policy. While 66.86% of households (472 households) expressed interest in participating in agricultural credit guarantee loans, only 23.65% of households actually took part or participated multiple times. The overall awareness of the agricultural credit guarantee policy among farmers and their participation rate are both low. An increase in farmers’ awareness of the agricultural credit guarantee policy can have a significant impact on their willingness and frequency of participation. The farmer’s understanding of the agricultural credit guarantee policy has a significant impact on their decision to participate in credit guarantee loans. However, this effect can vary based on the farmer’s income level, household capital, and factors such as social security, personal characteristics, location, and type of household business. To improve the support provided to farmers, it is advised to increase their awareness and understanding of agricultural credit guarantee policies. Furthermore, loan products and services should be personalized according to the capital available to each farmer’s household, and the agricultural credit guarantee system and process should be enhanced to provide better assistance.