PPP or become an important promoter of agricultural supply side reform

PPP or become an important promoter of agricultural supply side reform

Recently, the National Development and Reform Commission and the Ministry of Agriculture issued the "Guiding Opinions on Promoting Government and Social Capital Cooperation in the Field of Agriculture", and proposed to vigorously promote government and social capital cooperation in agriculture (hereinafter referred to as PPP) to improve the overall efficiency and efficiency of agricultural investment. Agricultural modernization provides strong support. In this regard, Founder macro Ren Zeping and Lu Liangliang commented that as the official PPP guidance document in this field, the policy layer is far more supportive than the PPP in the agricultural sector. PPP may become an important promoter of supply-side reform.

The following is the original review:

1. Core point of view: The introduction of PPP in the agricultural field has long been available, but the “Opinions” issued by the National Development and Reform Commission and the Ministry of Agriculture are official PPP guidance documents in this field. The Opinions clearly put forward the key areas and development paths of PPP in the agricultural sector. At this policy level, the support for PPP in the agricultural sector is far more than that. It not only protects the capital security of social investment in the system, but also establishes a clear risk prevention and control mechanism while ensuring reasonableness. This will facilitate the accelerated implementation of PPP. The implementation of PPP in the agricultural sector is aimed at serving agricultural modernization and is conducive to environmentally friendly water conservancy projects. The agricultural supply side reform emphasizes strengthening the supply of agricultural products (12.700, 0.00, 0.00%), which is conducive to seed engineering. The emphasis on agricultural environmental protection may further push up the prices of agricultural products in the first half of next year, especially in the livestock and poultry farming industry. The promotion of PPP in the public service sector will help improve supply efficiency, and PPP may become an important driver of supply-side reform.

2. The Opinions clearly set out the key areas and paths of PPP in the agricultural sector. First of all, in key areas, “focus on supporting social capital to develop high-standard farmland, seed engineering, modern fishing port, agricultural product quality and safety testing and traceability system, animal and plant protection and other agricultural infrastructure construction and public services; and guide social capital to participate in agricultural waste. Resources utilization, agricultural non-point source pollution control, large-scale large-scale biogas, agricultural resources environmental protection and sustainable development projects; encourage social capital to participate in modern agricultural demonstration zones, agricultural Internet of Things and information, agricultural products wholesale markets, tourism and leisure agriculture development Secondly, in terms of path, the Opinions require “scientificly define the rights and responsibilities of government and social capital. Encourage local governments to invest in agricultural PPP projects by means of capital injection. Local governments lead the work and actively promote institutional innovation. And policy creation, creating conditions for social capital to obtain a reasonable return."

3. At the policy level, the support for PPP in the agricultural sector is overweight, emphasizing the benefits while paying attention to risk sharing. The support of the policy is mainly reflected in six aspects: strengthening the government's agricultural investment guidance. Transform the government's agricultural investment methods and strengthen the incitement and guidance of government investment. Second, accelerate the reform of the rural property rights system. The pilot projects for the establishment of major agricultural infrastructures will be piloted. The assets formed by government investment are collectively owned by members of rural collective economic organizations, and the assets of social capital investment are owned by investors. Third, innovative financial services and support methods. Financial institutions are encouraged to support agricultural PPP projects through various means such as claims, equity, and asset support programs. Fourth, establish a reasonable mechanism. Capital investment, direct investment, investment subsidies, loan interest subsidies and other means to achieve social capital is reasonable. Fifth, improve the risk prevention and control and sharing mechanism. Establish a risk prevention and control mechanism with clear division of labor. The government is responsible for preventing and defusing policy risks. The project company or social capital party bears the risks of project construction cost, quality, and schedule. The force majeure risks such as natural disasters are jointly borne by the government and social capital. Sixth, the land needs of the project are guaranteed.

4. The implementation of PPP in the agricultural sector is aimed at serving the modernization of agriculture and is conducive to environmentally friendly water conservancy projects. The reform of the agricultural supply side emphasizes strengthening the supply of agricultural products and is conducive to seed engineering. “Green” is a main line of modern agricultural development during the 13th Five-Year Plan period. China is a country with severe drought and water shortage, and the water resources are unevenly distributed. The drought in rural areas in the central and western regions is particularly serious. To solve food security problems and improve supply efficiency, the construction of high-standard farmland is an effective means. The drip irrigation system of the Israeli desert plantation has created Israel's modern pastoral. Therefore, the development of China's modern agriculture needs to promote environmentally friendly water conservancy projects. On the other hand, China's current green food crops are relatively small, and some agricultural products need to rely heavily on imports. Therefore, while improving rural infrastructure, it is imperative to increase the supply of agricultural products by promoting supply-side reforms in agriculture. The first problem to be solved is the breeding problem, so seed engineering is also the focus of future agricultural work. In addition, the supply of agricultural products is also inseparable from the construction of agricultural product quality and safety testing system.

5. Paying attention to the environmental protection and sustainable development of agricultural resources or further pushing up the prices of agricultural products in the first half of next year, especially in the livestock and poultry breeding industry. In the past 15 years, environmental protection has become the norm. The environmental pressure on pig farming has continued, and there has been a large number of retreats and closures in the southern part of the country this year. As green environmental protection becomes more and more important, the shortage of live pigs will continue in the next year, and it is expected to see a slow increase in the number of stocks in the middle of next year. Environmental storms may spread to other areas, and recent increases in soybean meal prices are an example. The 17-year projected increase in costs and supply-side destocking will drive agricultural product prices up.

6. The positioning of the PPP model has gradually changed from “steady growth” to “promoting reform and benefiting people's livelihood”. PPP has become an important promoter of supply-side structural reform in the public service sector. In the “Notice on Deepening the Cooperation between Government and Social Capital in the Field of Public Service” issued by the Ministry of Finance on October 11, the PPP model emphasized the orientation of “promoting reform, benefiting people's livelihood, and stabilizing growth”. In reform and people's livelihood. If the PPP model is implemented and promoted in some public service areas, the future supply of services will shift from a single government supply and a single investment to a cooperative supply and diversified investment mode. Since the efficiency of the market mechanism is higher than the administrative arrangement of the government, the implementation of the PPP model in some public service areas will help to improve the production efficiency in these areas, thus achieving the ultimate goal of supply-side structural reforms - changing the supply efficiency of products and quality.

Technical standard: HG/T2491-93