Exploring public-private partnership models for agricultural investment

"the country is agriculture-oriented". Agriculture is related to the national economy and people's livelihood, food security, increasing farmers' income and many other aspects. China has always put agriculture in the first place in the development of the national economy. At present, China's agricultural industry is in the stage of transformation and upgrading from traditional agriculture to modern agriculture.

In the next 10 years, China's agricultural industry will usher in a period of rapid development. The good and rapid development of agricultural industry needs not only to solve the problem of capital investment, but also to solve the problem of effective use of funds, which requires the combination of public and private resources through model innovation.

It is inevitable to customize public-private partnership for "farmers"

Agricultural product is a special commodity, and its particularity is reflected in that it undertakes many non-economic functions, such as ensuring national economic security and ensuring the survival and development of residents. To a certain extent, the attribute of quasi-public goods of agricultural products determines that the government should play an important role in its supply. In addition, farmers and enterprises are also important providers of agricultural products, if only by government investment or private investment to provide agricultural products, there will be serious deficiencies. Therefore, the supply of agricultural products and the development of agricultural industry should give full play to the cooperative effect of "government + enterprises + farmers" through model innovation.

Generally speaking, investment in the agricultural industry has the following characteristics:

There is a great demand for funds. Agriculture itself is a large industry, including land, seeds (livestock), planting, breeding, processing, marketing, circulation and many other links. In addition, it also involves agricultural services such as pesticides and agricultural machinery. In particular, some specific agricultural segments require high investment, such as livestock breeding. Large industry means large investment. From 2003 to 2012, the cumulative expenditure on agriculture, rural areas and farmers in the central government has exceeded 6 trillion yuan.

The investment cycle is long. Crops and livestock all have different growth cycles. In the case of beef cattle, it takes at least two years from calf to growth, which does not include the time of early breeding, breeding and downstream processing and marketing. therefore, it usually takes a long time for agricultural investment funds from investment to effect.

The investment income is limited and the investment risk is high. For a long time, the profit level of agricultural production is low as a whole, and the investment income is limited. At the same time, agricultural production is greatly affected by natural climatic conditions, and there are many uncertain factors, which may make farmers or agricultural enterprises fall into the periodic fluctuation of "one rich and one poor".

There are high requirements for investment professionalism. Agricultural investment is closely related to the national agricultural policy, which requires investors to have a deeper understanding of agricultural policy and its trend. At the same time, agricultural investment has higher requirements for professional operation and management.

Based on the unique attributes of agricultural products and the characteristics of investment in the agricultural field, it is not enough to rely on the input of the government, farmers and enterprises in the agricultural field, but must realize the organic combination of public resources and private resources.

The so-called public-private partnership (PPP, short for Public Private Partnerships) refers to the management mode in which the private sector is involved in the provision of public goods and services in the process of cooperation between the public sector and the private sector, so as to realize the functions of the public sector of the government. Through this process of cooperation and management, public goods and services can be provided to society more efficiently without excluding and properly meeting the investment profit objectives of the private sector.

From the perspective of agricultural investment, public-private cooperation can also be interpreted from another perspective: "public" means that investment pursues social benefits, "private" means that investment pursues economic benefits, and "public-private cooperation" is not only the cooperation between the government and the private sector. it is also an organic balance between social and economic benefits.

The "seed" funds are brought into agriculture by means of points.

Under the mode of public-private cooperation, public finance should make use of mode innovation to try to make use of "introduction" funds and "seed" funds, giving priority to social benefits, giving consideration to economic benefits, and taking into account economic benefits, to promote, drive and guide the input of all sectors of society in the field of agriculture, and let social resources such as private capital enter the field of agriculture to achieve policy objectives.

The China Agricultural Industry Development Fund itself is a brand-new exploration of public-private cooperation in the field of agricultural investment. On the premise of serving "agriculture, rural areas and farmers", it comprehensively uses a variety of financial tools to guide social funds into rural areas and cultivate leading enterprises in agricultural industrialization. and take the leading enterprises as the fulcrum, promote the development of an industry and an industry, and promote the prosperity of agricultural economy in a region and a field. We should give full play to the radiation effect, leading role and driving function of the fund, and strive to play a positive role in promoting social and economic development and promoting farmers to get rich.

In recent years, the enthusiasm of private capital for agricultural investment has increased unabated, how to make tens of billions of funds flow to the most needed links of the agricultural industry in an orderly manner? How can these funds not be wasted or become completely speculative investments? This requires not only the means of market regulation, but also the guidance of government departments or other organizations with similar functions. Take Tianjin Leiwo heavy Industry Co., Ltd., which is invested by the fund, as an example. Leiwo heavy Industry has carried out strategic cross-border mergers and acquisitions by setting up global R & D centers in Italy, Japan and other places. it has narrowed the gap with foreign competitors in technology and products, and gradually formed a truly globally competitive technological capability. The fund focuses on supporting the company's basic research and development, while driving social capital such as the Industrial and Commercial Bank of China to support its financial leasing business. In 2013, China's broiler industry suffered the double blow of bird flu and the downward cycle of the industry, the situation is difficult, farmers have to reduce production or withdraw, large-scale enterprises also have large-scale losses, funds are generally tight. In this context, the China Agricultural Industry Development Fund is still investing in Jiangsu Lihua Animal Husbandry Co., Ltd., and the intervention of the fund has greatly enhanced the confidence of social capital and enterprises in the industry. at the same time, the fund also supports Lihua animal husbandry to cooperate with famous slaughtering institutions in the industry to appropriately develop slaughtering business, change the mode of operation, and improve the competitiveness of enterprises.