Deputy Director of the Finance Department of the Ministry of Agriculture: using financial means as a lever to pry farmers

China Securities Network News (trainee reporter Jin Jiajie) China's modern agricultural development is facing a new situation. "originally, a small amount of financial subsidies were used to support agriculture, but now financial means should be used as a lever to stimulate the participation of the financial sector." Guo Hongyu, deputy director of the Finance Department of the Ministry of Agriculture, summed up the work done by the Ministry of Agriculture in mobilizing rural finance this year at the 2015 Agricultural Informatization Summit Forum held on the 8th, including establishing and improving the agricultural credit guarantee system and carrying out pilot projects for the innovation of financial products supporting agriculture.

First, establish and improve the agricultural credit guarantee system. In July this year, the Ministry of Finance and the Ministry of Agriculture jointly issued the guidance on Financial support for the Establishment of Agricultural Credit guarantee system. The Ministry of Agriculture has allocated more than 23 billion yuan to support the establishment of agricultural credit guarantee institutions throughout the country over a period of three years. The goal of this year is to establish a provincial guarantee agency, and at the same time, the guarantee alliance is also in the process of starting, providing financing guarantee help for the new agricultural operators in our country.

Second, finance supports pilot projects of agricultural innovation, including financial pilot projects in modern agricultural demonstration zones. This year, the Ministry of Agriculture launched a new business entity "Internet Finance + Brand Pledge" loan innovation project in Shanghai. Guo Hongyu said that the project has three major characteristics: first, the intangible assets and brands of the enterprise are used as loan pledge after evaluation. The second is to establish a credit service platform for new economic entities in Shanghai to make up for the lack of credit function of the public information platform to agricultural operators. At the same time, it also sets a threshold for brand pledge loans. The third is to form a linkage mechanism between financial support and edible agricultural products, and the credit situation of the quality and safety of agricultural products can be used as a credit basis for applying for bank loans.

Guo Hongyu put forward several major directions for the prospect of cooperation between Internet financial institutions and the agricultural sector in the future. The first is the exchange of information between Internet financial institutions and the agricultural sector, and the Ministry of Agriculture can also provide information on industrial policy planning and pilot projects of modern agricultural reform. The second is to jointly develop financial products that meet the needs of farmers. The third is to work together to do a good job in directional guidance and services. For projects recommended by the agricultural sector to Internet financial institutions, follow-up, guidance and services should be carried out.