Since 2013，asset backed securitization ( ABS) has developed rapidly in Chin． However，there are few ABS backed with farmers’loans，and few related studies on the valuation of it． It is revealed that farmers’ loans are different from ordinary loans，with the features of small，short-term，and cyclical． The repayment behavior of farmers’loan is significantly seasonal，so that prevalent models are not applicable． The paper uses data comprised of 49 970 loans，issued by a rural commercial bank during the years between 2012 and 2014， as the underlying asset of ABS． Monte Carlo model is adopted to predict the future cash flow of the asset pool， and SV model is applied to fit the yield curve，then the present value of the expected cash flows is derived． The cash flow of the bond is divided into different credit tranches to devise a CMO ( collateralized mortgage obligation) ． It is found that farmers’loan securitization is helpful to relieve the liquidity risk of rural commercial banks．