Abstract: Based on the process of digital transformation of commercial banks and the cooperation with financial technology enterprises, and the quasi natural experiment of the latter providing third-party digital credit authentication for farmers, this paper conducts an empirical analysis. The findings show that, firstly, third-party digital credit authentication has improved the accessibility and frequency of formal credit for farmers. Secondly, by easing the formal credit constraints on farmers, third-party digital credit certification can encourage farmers to reduce the proportion of field crop planting areas, promote the replacement of elderly agricultural labor by more high-value agricultural machinery, increase net income from field crops, and reduce farmers’ risk aversion. Thirdly, the observable and unobservable heterogeneity of farmers will affect the magnitude of the causal effects mentioned above. Therefore, third-party digital credit authentication can become an effective financial innovation to improve farmers’ access to formal credit and enhance their production and livelihood. While further improving the construction of the rural credit system, the formal financial institutions should design diversified credit products based on the endowment of farmers, their expected net utility in participating in third-party digital credit authentication, and their borrowing tendencies. This will help them more effectively and accurately meet the diverse financing needs of rural revitalization.

Key words: third-party digital credit authentication, risk preference, production decision-making, marginal disposal effect