How to effectively prevent the financing risk of Agricultural products Pledge

In the underdeveloped agricultural areas of our country, the "financing difficulty" of small and medium-sized enterprises is still an important factor restricting economic development. As a new financing method, agricultural product pledge financing provides a new way to alleviate the financing difficulties of small and medium-sized enterprises in agricultural areas. However, due to the restriction of the biological properties of agricultural products and the influence of market and price factors, how to effectively control the credit risk of agricultural products as collateral has become a problem that must be solved at present. This paper takes the agricultural product pledge financing credit in Anda City and Qinggang County of Suihua City as an example to analyze its risk and control.

The Development and risk of Pledge financing of Agricultural products

Anda City and Qinggang County, which belong to Suihua City, are located in the central and western part of Heilongjiang Province, of which Anda City has jurisdiction over 10 towns with an agricultural population of 300000, and Qinggang County has jurisdiction over 12 townships with an agricultural population of 350000, which is located along the northeast shelterbelt. The total agricultural output value in 2014 was 6.55 billion yuan and 6.51 billion yuan respectively, which is a typical semi-agricultural and semi-pastoral county. At the same time, the forestry coverage rate is increasing year by year. In recent years, the people's banks of the two counties (cities) have actively guided various financial institutions to carry out financing business pledged by grain, trees and other agricultural products, which has effectively broadened the financing channels for small and medium-sized enterprises. Since 2013, rural credit cooperatives have issued two pledge loans of 40 million yuan for grain, trees and other agricultural products, solving the problem of insufficient liquidity for two agriculture-related trade enterprises. However, there are also some problems that need to be solved in the loan issuance. According to the investigation and analysis, there are mainly five risks restricting the development of agricultural product pledge financing business.

The management risk caused by the biological properties of agricultural products. Because the biological attribute of agricultural products is easily affected by natural disasters, biological infringement, enterprise management and other factors, it brings great difficulties to the supervision and risk control of banks. Once natural and man-made damage occurs, it will directly cause the damage of the collateral of financial institutions and form the risk of loans.

The market risk of the value evaluation of agricultural product pledge. As China has not yet established a mechanism for evaluating the value of agricultural products, coupled with the lack of professional and technical personnel in the evaluation of the value of agricultural products in financial institutions, at present, financial institutions evaluate the value of pledged goods such as grain prices only with reference to the current market prices. however, it is difficult to make a reasonable evaluation of long-lived products such as forests. when the market supply and demand fluctuates and the price drops and is unsalable during the pledge period, the ability to realize the pledged goods decreases. It makes the bank loan mortgage have certain hidden risk.

The lack of insurance compensation and third-party guarantee mechanism. Due to the instability of agricultural collateral, some insurance and guarantee institutions with professional qualifications are unwilling to provide insurance and guarantee for them in the process of financing. as a result, there is a lack of third-party intervention in the risk sharing of agricultural products pledge loans in financial institutions.

There are policy risks in the pledge of forest products. In recent years, Suihua City has confirmed the ownership of forest products, and some forest property rights are owned by farmers. Because most of the trees in Anda City and Qinggang County are located in the northeast shelterbelt, which belongs to the category of windbreak and sand fixation, the state forestry department stipulates that it is not allowed to be cut within the prescribed time limit and cannot be used as a pledge to borrow money from financial institutions, which also restricts the development of agricultural product pledge financing business.

Countermeasures to prevent the risk of Pledge financing of Agricultural products

It is necessary to strictly control the pledge of agricultural products. Agricultural products are related to agriculture, forestry, animal husbandry, fishing and other industries. in the loan examination, in the selection of pledge of agricultural products, we must first select products with strong liquidity, short processing cycle and small price fluctuation; secondly, we should choose agricultural products that are easy to keep and are not easy to deteriorate. From the financing practice of Anda City and Qinggang County, choosing corn and soybean as collateral can effectively avoid management and market risks.

It is necessary to pay close attention to the changes in the market of pledged agricultural products. Once the pledged goods of agricultural products are selected, we must pay close attention to the market information of the pledged goods of agricultural products, keep abreast of the changes in market prices, provide information support for enterprises to win maximum profits, and minimize bank credit risk by controlling the risks caused by market fluctuations in agricultural products.

The term of pledge loans for agricultural products should be strictly controlled. The term of the loan should be reasonably determined according to the biomass properties of the pledged goods of agricultural products and the routine of market purchase and sale, so as to prevent the risks caused by the market dislocation of overdue storage or processed products.

It is necessary to strengthen the supervision of the pledge of agricultural products. The first is to strengthen the supervision of financing enterprises. Urge enterprises to strengthen the infrastructure construction of storage facilities and safety equipment for pledged goods; second, financial institutions should make it clear that special personnel are responsible for supervision. Make the responsibility to the person, formulate all kinds of risk disposal plans, and control the safety risk of agricultural product pledge in real time.

Establish and improve agricultural product mortgage evaluation institutions. First, the agricultural management departments of the local government should set up agricultural product evaluation institutions, formulate unified evaluation processes and standards, establish a linkage mechanism with the futures market, monitor the price of agricultural products in real time, and ensure the fairness and authority of the value evaluation of agricultural products. Provide services for enterprises and financial institutions; second, financial institutions should also introduce professionals to carry out the evaluation and management of the value of agricultural products pledge.

Coordinate the introduction of third-party guarantee compensation mechanism. In order to effectively prevent the risk of agricultural product pledge financing, financial institutions should coordinate relevant intermediary institutions such as professional insurance and guarantee, and establish a good relationship of mutual assistance and cooperation, so as to reduce and disperse the risk of agricultural product pledge loans.