The transformation from “survival type peasant household” to “management type peasant household” is an important feature of small peasant household’s economic development, and also the fundamental way for rural households to get out of relative poverty in the “post poverty” period. The important difference between the two types of farmers is the different scale of means of production that each has control of and directly promotes. From the perspective of the heterogeneity of farmers and villages, this paper describes the evolution of household economy, and makes a quantitative analysis of the mechanism of the impact of agricultural loans on the transformation of farmers. The results show that agricultural loans can significantly promote the transformation of subsistence farmers to operating farmers, and the transformation of farmers is affected by the capital structure of family livelihood, livelihood diversity and the heterogeneity of village livelihood. According to classical theory, the types of livelihood capital are transformed into the factors of production scale, disposable cash flow and labor input integrated into technical variables.As each factor increases by 1 percentage point, and the transformation probability of farmers increases by 5.51, 2.82 and 2.51 percentage points respectively. The rural credit management mode should adapt to the economic development of smallscale intensive smallscale peasant households, adapt to the changes of credit market structure based on the scale and structure of peasant households’ livelihood capital, and design the agricultural credit products with the operating peasant households as “enterprises”, so as to promote the transformation of peasant households and their development to a higher form.

targeted poverty alleviation; transformation of farmers; subsistence farmers; operating farmers; agricultural credit acquisition