Ten models of financial support for agriculture help structural reform of agricultural supply side

In recent years, localities, departments, and financial institutions have actively promoted rural financial organization innovation, product innovation, and service innovation, and explored the formation of a number of financial service models that are in line with the characteristics of agriculture and rural areas, and promoted the difficulty of solving agricultural loans, expensive loans, and high risks. The problem played an important role. In order to better summarize the experience of rural financial innovation, with the strong support of the China Banking Regulatory Commission, the China Securities Regulatory Commission, the China Insurance Regulatory Commission and other departments, the Ministry of Agriculture has selected the criteria according to the requirements of closely catering to farmers, covering a wide area, large amount of credit, and reasonable risk prevention and control mechanisms. Selected "political bank", "political bank insurance", "bank loan + risk protection compensation", "two-right mortgage", "rural credit cooperative microfinance", "agricultural price index insurance", agricultural machinery finance ( Financing) Leasing “Double-Based Partnership Loan”, “Internet + Rural Finance”, and “PPP in Agriculture” are promoted to the whole country through public release. Encourage all localities to combine the actual conditions, introduce supporting policies, increase innovation and promotion efforts, further meet the needs of farmers' financial services, assist the structural reform of agricultural supply side, and accelerate the development of agricultural modernization.

First, the "political bank" mode

“Government Banking” means that the government, banks, and guarantee institutions give full play to their respective advantages, work closely with each other, and the government supports or directly invests in the establishment of guarantee companies, guarantees eligible agricultural credit projects, and re-grants loans.

The innovation of this model is mainly reflected in: First, promote the landing of financial capital. The demand for agricultural credits with large quantities and small quotas will be brought together, and the “one-to-many” relationship between banks and farmers will become “one-on-one” with the guarantee companies, which will narrow the distance between supply and demand and reduce transaction costs. The second is to give full play to the leverage of financial funds. Through the injection of capital from the guarantee company, the guarantee company can amplify the leverage effect of achieving 15 times higher net assets. Third, the agricultural credit risk is controllable. The transfer of credit risk from the banking sector to the guarantee company distracted the agricultural credit risk and mobilized the enthusiasm of financial institutions. At the same time, the government has granted a continuous guarantee fee subsidy and risk compensation subsidy to the policy-based agricultural guarantee company to the “political bank” model to ensure sustainable operation.

In 2015, the State Council decided to establish a policy-oriented, focused and independent agricultural credit guarantee system with financial support throughout the country. At present, the national agricultural credit guarantee system has completed the capital injection of 44.88 billion yuan, the National Agricultural Credit Guarantee Alliance Co., Ltd. has been established, and 33 provinces (autonomous regions, municipalities directly under the central government, cities with separate plans) have established and started to extend to counties and cities. 27 provincial-level agricultural credit guarantee companies have carried out substantive business, and a multi-level and wide-coverage national agricultural credit guarantee system has begun to take shape. Among them, the “4321” model of Anhui Agricultural Credit Guarantee Company’s innovation and development, the provincial agricultural company, the provincial credit guarantee group, the bank, and the local government bear the risk responsibility according to the ratio of 4:3:2:1, realizing the risk. Sharing, mobilizing the enthusiasm of all parties and promoting the rapid expansion of business. As of the end of June 2017, Anhui Agricultural Credit Guarantee Company, which was established one and a half years ago, has provided a total of 1.82 billion yuan of guaranteed loans to 3,131 new agricultural business entities.

Second, the "bank loan + risk compensation" model

“Bank loan + risk compensation fund” refers to the establishment of risk compensation fund by financial funds. Cooperative banks provide unsecured, unsecured, low-cost, simple and fast loans to new agricultural business entities. When non-performing loans occur, they are in accordance with the agreed procedures. The proportion is compensated from the financial risk compensation.

The innovations of this model are mainly reflected in: First, weakening the requirements for peasant property collateral, mobilizing the enthusiasm of banks, and effectively improving the availability of loans. The second is to play the role of financial funds “small money and big money”, which can be used to incite bank loans in accordance with the government's risk compensation fund 10 times higher.

Jiangxi's “financial benefit to farmers” is a typical representative of such a model. In 2014, Jiangxi Province, city and county finances raised 1.5 billion yuan of funds to be invested in cooperative banks as risk compensation funds, and cooperative banks issued loans at not less than 8 times of financial risk compensation. In terms of risk compensation, the proportion of financial risk compensation is verified according to the actual lending scale of the bank. The larger the scale of lending, the higher the compensation ratio, which plays a very good incentive and restraint role. As of the end of June 2017, Jiangxi Province had accumulative loans of 32.329 billion yuan through the “Financial Benefits to Agriculture”. Many provinces such as Jiangsu, Hebei, and Zhejiang have promoted and applied the “bank loan + risk compensation fund” model.

Third, the "political and financial insurance" model

“Government and Bank Protection” means that insurance companies provide guarantee insurance for loan entities, banks provide loans, and the government provides premium subsidies, subsidized subsidies and risk compensation support. Through the three-wheel drive of finance, credit and insurance, they jointly support the development of new agricultural business entities.

The innovation of this model is mainly reflected in: First, it plays the role of guaranteeing insurance. The second is to weaken the requirements for collaterals, and farmers can get loans with quick discounts. The third is to achieve the risk sharing of the government, banks and insurance institutions.

Sanshui District, Foshan City, Guangdong Province first proposed the “political and financial insurance” model in 2008. As of the end of December 2016, the district financed a total of 10.1 million yuan of premium subsidies, and issued a total of 5,820 “political and financial insurance” loans, amounting to 1.018 billion yuan, and the fund mobilization effect reached 100 times. Since 2013, Guangdong Province has implemented the “Government and Bank Protection” project of farmers' cooperatives in a four-year cycle. In 2013, the provincial government invested 50 million yuan, of which 14 million yuan was used for the full subsidy of insurance premiums, 21 million yuan was used for subsidies of 50% of loan interest, and 15 million yuan was used to set up super-compensation funds. When the loan is overdue and the risk occurs, 20% of the loss will be borne by the bank, and the remaining 80% will be paid by the insurance company to the bank within the high compensation limit; the excess payment limit will be paid by the “political bank insurance” over 80% of the compensation fund. Committed by the bank. In 2014, the provincial government invested another 97 million yuan, and the scope of implementation was further expanded. At present, Shanghai, Shandong, Hebei, Fujian and other provinces have issued relevant policy documents to promote the “political and financial insurance” model. Among them, through this model, Shanghai has only spent 33 million yuan in finance and accumulatively incited bank loans of 2.5 billion yuan.

Fourth, the "two-right mortgage loan" model

“Two-right mortgage loan” refers to the mortgage of the management rights of rural contracted land and the mortgage of farmers’ housing property rights. Among them, the mortgage loan for the operation rights of rural contracted land is mortgaged by the management right of the contracted land, and the bank issues loans to the farmers or agricultural business entities. Mortgage loans for peasant housing property rights are based on the premise of not changing the ownership of the house site, and the peasants’ housing ownership and the right to use the house site are used as collateral, and the bank issues loans to the owner.

The innovation of this model is mainly reflected in: First, it has given the “two powers” ​​mortgage financing function, and innovated the “two rights” mortgage loan products and services, which is conducive to revitalizing rural stock assets, improving rural land resource utilization efficiency, and promoting rural economy. And rural financial development. Second, the pilot regional government assumes the main responsibility, effectively promotes the registration and certification of the rural contracted land management rights, the construction of rural property rights transfer trading platform, the benchmark land price development of collective construction land, the valuation of collateral assets, and the disposal of collateral. The third is to pay attention to safeguarding the legitimate rights and interests of farmers, insisting on not changing the nature of public ownership, not breaking through the red line of cultivated land, and not reporting the scale of scale. The contracted land used for mortgage has no right to dispute, and cannot exceed the remaining years of farmers' contracted land.

In 2016, with the authorization of the Standing Committee of the National People's Congress, the People's Bank of China and the relevant ministries and commissions identified 232 farmland mortgage loan pilot counties (cities, districts) and 59 rural mortgage loan pilot counties (cities, districts). Financial institutions such as Agricultural Bank of China and China Postal Savings Bank have launched a variety of credit products such as “two rights + third-party guarantees”, rural multi-property portfolio mortgages, and farmhouse micro-guarantee insurance loans. More than 900 local financial institutions have established Special credit management system. At the same time, in conjunction with the “two powers” ​​mortgage loan pilot program, the rural property rights transfer system has been gradually improved, and the collateral disposal mechanism has been continuously improved. Some pilot areas have established land acquisition and storage companies that are led by leading enterprises or governments; some adopt “pre-mortgage” methods. In the pilot area, the property rights will be reversed to a third party with the ability to dispose of it, and the third party will guarantee it to solve the disposal problem. As of the end of 2016, 232 farmland mortgage loan pilot counties and 59 rural mortgage loan pilot counties approved by the State Council issued a total of 26.6 billion yuan of “two rights” mortgage loans.

V. Mode of “Rare Credit of Rural Credit Cooperatives”

“Rural credit of rural credit cooperatives” refers to the loans issued by rural credit cooperatives based on the creditworthiness of farmers and issued to farmers without approval or guarantee within the approved quota and time limit.

The innovation of this model is mainly reflected in the following: First, the beneficiaries of the loan are mostly ordinary farmers with large amount of loans and small loan amount. Second, loans are mainly based on credit and do not require collateral. The third is to implement a verification, balance control, use of loans, turnover, flexible, flexible procedures.

The “One Little Pass” microfinance launched by Hainan Provincial Rural Credit Cooperatives is a typical representative of such a model. It has created a set of microfinance corporate culture including credit concept, code of conduct, work spirit and working methods. Establish a special organization, set up a professional team, formulate special procedures, develop special products, set up special funds, realize clear responsibilities, clear rewards and punishments, effective incentives, and constraints, and better eliminate the information asymmetry between borrowers and loaners. Reduce operating rates and increase farmers' credit availability. As of the end of June 2017, a total of 13.933 billion yuan of small loans were distributed to farmers, benefiting 217,000 farmers. At the same time, the model experience has been widely used by other microfinance companies such as microfinance companies and rural banks.

6. "Agricultural price index insurance" model

“Agricultural price index insurance” is a product model innovation that gives agricultural producers financial compensation for losses caused by large fluctuations in market prices and lower prices of agricultural products.

The innovations of this model are mainly reflected in: First, the market risk of agricultural production is included in the scope of agricultural insurance protection, which broadens the insurance service field, promotes the basic stability of agricultural production and agricultural product market prices, and protects the interests of farmers. Risk protection has formed a useful supplement. Second, by exploring and promoting agricultural product price index insurance, it is possible to gradually transition to income insurance, and help to realize the transformation of agricultural insurance from insurance cost to insurance income.

In 2011, Shanghai Agricultural Commission and Anxin Agricultural Insurance Company launched the vegetable price index insurance nationwide. In 2012, the Beijing Municipal Agriculture Commission and Anhua Agricultural Insurance Company launched the pilot of the hog price index insurance. As of the end of 2016, the agricultural product price insurance pilot area has been extended to 31 provinces. The pilot varieties include 50 types of live pigs, vegetables, food crops and local specialty agricultural products. The premium income exceeded 1 billion yuan and the risk protection was 15.481 billion yuan. Since 2014, some regions have launched the “Insurance + Futures” model on the basis of agricultural product price index insurance, using the futures market to spread the systemic risk of price fluctuations. In 2016, the Ministry of Agriculture and the University of China supported three soybean projects and 10 corn projects with an insured area of ​​563,000 mu. A total of 4,159 households and 41 cooperatives were insured, with a spot volume of 201,000 tons. In 2017, the company approved 32 new “insurance + futures” pilot projects. The pilot model extends from price insurance to income insurance, and its coverage extends to seven provinces including Heilongjiang, Jilin, Liaoning, Inner Mongolia, Hebei, Anhui and Chongqing. Autonomous region, municipality).

Seven, "agricultural machinery financing lease" mode

“Agricultural Machinery Financing Leasing” means that the financing (financial) leasing company links and integrates the various resources of the lessee, bank, dealer and government in the role of a leasing integrated service provider. The tenant (large agricultural machinery, agricultural machinery cooperative) pays a certain amount. The down payment (usually 30% of the total amount) can be used independently of mechanical equipment, the remaining rent and interest are paid in installments, and the ownership of the agricultural machinery is transferred to the lessee after the full payment is made.

The innovation of this model is mainly reflected in the change of farmers from “direct purchase” to “first rent and then buy”, which greatly reduces the one-time investment pressure and alleviates the difficulty of purchasing large agricultural machinery.

Financial leasing is a way for farmers in developed countries to purchase agricultural machinery and equipment, and has been widely used in other large equipment purchases in China. In August 2015, the General Office of the State Council issued the “Guiding Opinions on Accelerating the Development of the Financial Leasing Industry” (Guo Ban Fa [2015] No. 68) and the “Guiding Opinions on Promoting the Healthy Development of the Financial Leasing Industry” (Guo Banfa [2015] 〕 No. 69), encourage financial leasing companies to support the development of modern agriculture, and actively carry out financial leasing business for new agricultural enterprises such as large grain farmers, family farms, agricultural cooperatives, etc., to solve the problem of insufficient funds for the purchase of large-scale agricultural machinery, production equipment and processing equipment. problem. In 2015, the Ministry of Agriculture launched a pilot financing lease in the main cotton producing areas of Xinjiang, which effectively promoted the promotion of large-scale cotton pickers and improved the rate of cotton picking in Xinjiang. In practice, localities are actively exploring the application of financing (financial) leasing models to the procurement of small and medium-sized agricultural machinery and the construction of greenhouses.

Eight, "double-base linkage cooperation loan" model

“Double-base linkage cooperation loan” refers to grassroots banking institutions and grassroots party organizations in agriculture and animal husbandry communities to play their respective advantages, strengthen cooperation, and jointly complete credit rating, loan issuance and loan management for farmers, herdsmen and urban residents.

The innovation of this model is mainly reflected in: First, build a platform to build a new platform for providing basic financial services for farmers and herdsmen by relying on grassroots party organizations. Second, it has exerted the dual advantages of giving full play to the advantages of information, organization, and administrative resources of grassroots party organizations and the capital, technology, and risk management advantages of grassroots banks and township institutions to promote superior docking and integration. The third is to achieve multi-win, that is, through the "double-base linkage", the grass-roots party organizations have provided a new grasp for farmers and herdsmen, the bank has launched a new platform for grassroots financial services, and the rural basic financial services have made new breakthroughs. Strengthen the building of grassroots party organizations, develop inclusive finance, revitalize the rural economy, and increase farmers' incomes to achieve win-win results.

In April 2015, Qinghai Province issued the “Pilot Program for “Double-Based Linkage” Cooperation Loan for Qinghai Banking Industry”, selecting agricultural banks, postal banks, rural cooperative financial institutions and Qinghai Bank, which have more outlets in rural pastoral areas and higher levels of grassroots. The grassroots institutions initiated the pilot project of “double-base linkage” cooperation loans. As of the end of December 2016, Qinghai had 390 outlets for “double-base linkage” cooperation loan business, and established 2,952 credit studios with a loan balance of 4.7 billion yuan, benefiting 610,000 farmers and herdsmen. The “Double-Based Linkage” has been included in the key reform and innovation projects and the “Implementation Opinions on the Implementation of the Inclusive Financial Development Plan (2016-2020) in Qinghai Province), which has become the implementation of the national poverty alleviation policy and the strengthening of grassroots party organizations. A powerful grip to the innovative development model of inclusive finance.

Nine, "Internet + Rural Finance" mode

“Internet + rural finance” refers to the use of the Internet as a carrier for financial institutions and industrial capital, using new technologies such as big data, cloud computing and Internet of Things to break the time, space and cost constraints of traditional financial models and improve the availability of credit for farmers. .

The innovation of this model is mainly reflected in: First, the coverage is wide. Internet finance has overcome the drawbacks of the high cost of traditional financial institutions' exhibition industry, and the input cost is small. Second, the threshold is lower. Internet finance does not require farmers' collateral, and farmers have saved cumbersome loan procedures. The third is fast and flexible. Internet finance can enable farmers to stay at home, and only need a smart phone to choose to handle related financial services, saving a lot of time.

At present, the Internet companies with e-commerce background represented by Ant Financial and Jingdong Finance, the agricultural supply chain service providers represented by New Hope and Dabei Agricultural, and the industrial capital represented by Haier Industrial Finance, with Yixin and Nong The P2P online lending platform represented by the Golden Circle has entered the rural financial sector, and new financial ecology, financial service models, and financial products continue to innovate. "Internet + Rural Finance" has opened up new perspectives and new paths to solve the problem of rural financial "difficultness", which has formed a useful supplement to traditional rural finance, and has broad adaptability and broad development space. According to the "China's "Three Rural Issues" Internet Finance Development Report (2016) released by the Chinese Academy of Social Sciences, the scale of China's "three rural" Internet finance in 2015 was 12.5 billion yuan, and the "three rural" Internet in China during the "13th Five-Year Plan" period. Finance will maintain a high-speed growth trend, and it is estimated that by 2020, the overall scale will reach 320 billion yuan.

X. “PPP in agriculture” mode

“PPP in the agricultural sector” refers to the cooperation of the government and social capital to exert financial leverage and guide social capital to actively participate in the investment, construction and operation of agricultural and rural public service projects.

The innovation of this model is mainly reflected in: First, it has opened up new channels for agricultural investment and financing. The government has played a directional and guiding role by investing a small amount of funds, and provided institutional and legal support policies to enhance social capital investment in agriculture. Enthusiasm and initiative. The second is to improve the efficiency of government investment, not only play the role of fiscal funds, but also play a decisive role in the market mechanism, and explore the mechanism for long-term use of investment projects in the agricultural sector. The third is to realize the combination of attracting investment and attracting intelligence, introducing advanced management concepts and market mechanisms into the agricultural field, breaking the limits of traditional agricultural thinking and injecting new vitality into the development of China's agricultural industry.

In 2017, the Ministry of Finance and the Ministry of Agriculture jointly issued the “Implementation Opinions on Deepening the Cooperation between Government and Social Capital in the Agricultural Sector”, focusing on guiding and encouraging social capital to participate in agricultural green development, high-standard farmland construction, modern agricultural industrial parks, and rural areas. Comprehensive body, agricultural product logistics and trading platform, "Internet +" modern agriculture six areas. At present, PPP in the agricultural sector has already had certain project reserves and practical exploration. In the national PPP comprehensive information platform warehousing project, there are 140 agricultural projects with a total investment of 96.1 billion yuan, of which 9 projects have been signed. In the next step, the Ministry of Agriculture will focus on key areas such as agricultural waste resource utilization and the National Modern Agriculture Industrial Park, and create a model demonstration of applying the PPP model in the agricultural sector, guiding and driving more social capital to invest in agriculture.