Abstract:Farmers' loan is significant to help poor farmers get rid of poverty and increase their incomes.Based on the survey data of farmers in CFPS(China Family Panel Studies) in 2014, 2016 and 2018, the heterogeneous impact of household borrowing on household income increase was explored. The results showed that, on the whole, the promotion effect of farmers' borrowing on family income was more significant, but the alienation characteristics were prominent. The increasing effect of farmers' borrowing was significant in household with low asset value, low expenditure level, low education level and remote provinces in central and western areas in China, which meant the loan funds had a greater impact on the income of vulnerable rural groups. The result also verified the significance of the development of inclusive finance for rural poverty reduction. Consequently, relevant suggestions were put forward that the government should continue to increase the implementation and coverage of inclusive finance in rural areas. The government departments should pay attention to personalized agricultural services, focus on the combination of subsidized credit and regular credit issuance, and adopt differentiated credit acquisition thresholds; in a state of spatial disequilibrium, lending funds would be tilted to regions, the government should provide industrial credit supports to coastal areas, and poverty alleviation credit funds should be used mainly for the central and western areas in China.

farmers' loans; farmers' incomes; alienation effect; inclusive finance;