Establish and improve the supporting system of mortgage for the right of management of agricultural land

The third Plenary session of the 18th CPC Central Committee proposed to stabilize the rural land contract relationship and keep it unchanged for a long time, under the premise of adhering to and improving the strictest cultivated land protection system, give farmers the possession, use, income, transfer and contractual management right mortgage and security right of contracted land. In August 2015, the State Council issued the guidance on carrying out the pilot project of mortgage loans for the management rights of rural contracted land and farmers' housing property rights, which made it clear that mortgage loans for the management rights of rural contracted land can be carried out in the pilot areas. This plays a positive role in improving the power of rural contracted land, solving the problem of farmers' lack of effective collateral, and improving the availability of farmers' loans. Through the investigation of the pilot areas such as Wuhan in Hubei and Pingluo in Ningxia, the author believes that in the process of promoting the pilot project of agricultural land mortgage, we should distinguish between the two types of subjects and establish and improve the relevant supporting mechanisms.

In the main body of the mortgage loan, one is that ordinary farmers mortgage with the management right of their own contracted land, and the other is that the new agricultural operators such as family farms, cooperatives, agricultural enterprises and so on are mortgaged by the management right of transferred land. For the former, because the land management right is owned by itself, it can be mortgaged with the management right for the remaining period of the second contract period. In most areas of our country, the second-round contract was carried out in 1998, the contract period is 30 years, the second-round contract period is 2028 years, and the remaining period of land management right is more than ten years. For the sake of preventing and reducing risks, the financial sector can give another discount to the rest of the term. For example, the financial institutions in Pingluo County generally deal with the remaining period by half, and the mortgage loan amount of farmers' land management right = land asset price × area × the remaining period of the second round of contract x 1max 2. For family farms, cooperatives, agricultural enterprises and other new subjects, their land management rights are all transferred, although the duration of the land transfer contract is relatively long, at least 3 to 5 years, and many of them are up to the end of the second round of contracting period. but the new operators generally pay the transfer fee once a year. Therefore, it can be considered that the transfer of the right of management can be realized only after the new subject has paid the transfer fee. Since the transfer fee is paid once a year, then the new subject actually only occupies the land management right of that year, therefore, the new subject can only mortgage the loan with the management right of the transferred land for a period of one year, and the amount can only be calculated with the consent of the transferred peasant household, and the financial institution can give another discount in order to reduce the operating risk. The new entity can repay the loan and reapply for the loan after paying the turnover fee in the following year, and so on and so on. The mortgage loan amount of the new main body land management right = land asset price × area × discount.

In the survey, it is also found that because the mortgage loan of agricultural land management right has just started, the relevant supporting system is not perfect, which has seriously affected the enthusiasm of both sides of the transaction and the pilot work, there is an urgent need to improve the relevant institutional arrangements in the following four aspects.

The first is the land assets evaluation mechanism. Carrying out land assets evaluation is not only an important prerequisite for the mortgage of agricultural land management rights, but also a basic work. At present, there is a general lack of specialized agencies for land asset evaluation and relevant methods for mortgage asset evaluation. Financial departments generally adopt the method of simply calculating the price of mortgage assets based on the market price of land circulation. Without considering the factors such as planting varieties and land facilities investment, there is a certain distortion in asset prices, which is not conducive to the real discovery of market prices. It is suggested that we can rely on the local rural property rights trading platform, such as land transfer service institutions, to build a professional service mechanism for the evaluation of land management rights, and of course, we can also rely on professional evaluation companies to carry out mortgage land asset evaluation. in combination with reality, various localities can formulate scientific evaluation methods covering comprehensive indicators such as land transfer price, planting varieties, facility investment, soil conditions and so on.

The second is the mechanism of land assets disposal. Whether the mortgage assets can be disposed effectively is the key to the sustainable development of the mortgage loan of the agricultural land management right, that is to say, once the mortgage loan has problems, the land management right must have a smooth disposal channel to disperse the operational risk of financial institutions. In order to construct the mortgage disposal mechanism of agricultural land management right, the key point is to improve and perfect the county, township and village three-level land circulation system, improve the relevant functions, and be able to introduce the agricultural land management right to be disposed of into the land circulation system and realize it again. make the system a hub connecting farmers and financial institutions. It should be reiterated that the right to operate farmland with mortgaged assets for a certain period of time does not involve farmers' contract rights, and farmers cannot be mortgaged during the contract period, so there is no risk of farmers losing their land permanently.

The third is the risk compensation mechanism. Generally speaking, the mortgage loan of agricultural land management right is a new thing, which is in its infancy. As agriculture is a weak industry with high risk, small scale of farmland mortgage funds and high transaction costs, under the circumstances that the current asset evaluation and disposal mechanism has not been fully established, if the risk is borne entirely by financial institutions and farmers, the enthusiasm of both sides is not high, which makes this work difficult to carry out. In order to smoothly promote this work, the government and financial institutions can jointly contribute to the establishment of a risk compensation fund at the initial stage of the pilot project. Once financial risks occur, financial institutions can be compensated for risks by a certain proportion from the fund, so as to reduce the risk of financial institutions. When the pilot project is carried out to a certain stage and the relevant mortgage asset disposal mechanism is relatively smooth, the risk compensation system can be withdrawn in time, and the mortgage of farmland management right will be completely decided by the market. It should be noted that financial risks should be mainly borne by the market, and the proportion borne by the government's risk compensation fund should not be too high, let alone be completely covered by the government. otherwise, there may be moral hazards such as relaxation of pre-examination by financial institutions or even collusion between credit parties to defraud loans. The author suggests that in the initial stage of the pilot, the proportion of the risk compensation fund can be about 60%, and gradually reduced, in order to enhance the risk awareness of both sides of the transaction and the sustainability of the transaction.

Fourth, rural credit system. According to the current pilot situation, in the mortgage business of farmland management right, whether financial institutions lend money to farmers essentially does not depend on the land management right mortgaged by farmers to financial institutions, but is determined by financial institutions comprehensively considering the historical reputation, industrial prospect, repayment ability and other factors of farmers. In other words, the mortgage of farmland management right currently carried out is still a kind of credit loan in essence, but it is only a process of further credit enhancement to farmers through mortgage of farmland management right. This situation is mainly due to the fact that the mortgage of farmland management right has just started, the construction of relevant supporting systems is still very backward, and it is difficult for farmland management right to assume the role of collateral independently. It is reasonable to combine farmer's credit status, industry development status and farmland management right in the initial stage of farmland management right mortgage experiment. This requires all localities to speed up the construction of rural credit system, establish credit files and credit ratings for farmers, and at the same time, carry out the rating work of credit family farms, credit farmers 'professional cooperatives and credit agricultural enterprises, realize the full coverage of rural credit system, and provide credit support for all kinds of subjects to carry out mortgage of farmland management rights.

In addition, for the pilot work of farmland management right mortgage, all localities should strengthen the construction of talent team five and organization system, especially pay attention to giving full play to the function of farmland circulation service system at all levels, and hand over the work of farmland management right evaluation, mortgage asset disposal, loan intention registration and preliminary examination to farmland circulation service system to undertake. The government should strengthen the policy support for rural financial institutions to carry out the mortgage of farmland management right, implement differentiated policies in taxes, evaluation, deposit reserve and other aspects, and stimulate the enthusiasm of financial institutions to participate in the mortgage of farmland management right.