Important Innovation of Rural Land and Financial Reform

-- the relevant responsible person of the central bank explained in detail the pilot project of "two rights" mortgage loans in rural areas.

The "opinion" aims to meet the practical needs of new agricultural operators, such as traditional farmers and family farms, to invigorate the "two rights" stock assets. The "opinion" points out that the pilot project must be orderly in accordance with the law, be voluntary, advance steadily, and the risk can be controlled. It must seek truth from facts, pay attention to conditions, and must not rush into action.

The guidance of the State Council on carrying out the pilot project of mortgage loans for rural contracted land and farmers' housing property rights was announced on the 24th. The guidance decided that the people's Bank of China, together with the Central Agricultural Office and other 11 departments, should organize and carry out pilot mortgage loans for the management rights of rural contracted land and farmers' housing property rights ("two rights"). The relevant person in charge of the central bank answered the reporter's questions on the relevant questions.

Invigorate rural land assets and inject new vitality into rural finance

Q: why should we carry out the pilot project of "two rights" mortgage loans?

A: carrying out the pilot project of "two rights" mortgage loans in rural areas is a clear task put forward by the third Plenary session of the 18th CPC Central Committee, and it is an important institutional innovation in China's rural land system reform and rural financial system reform.

At present, China is in a critical period of transformation from traditional agriculture to modern agriculture, the circulation of rural land management rights is obviously accelerated, and the development of appropriate scale operation is a realistic choice. new agricultural operators such as traditional farmers and family farms have a realistic demand for invigorating the stock assets of "two rights". In recent years, with the promotion of local governments and relevant departments, financial institutions have adopted a variety of flexible ways to explore the development of rural "two-right" mortgage business in accordance with local conditions, and some areas have formulated institutional measures and accumulated experience. However, the business standards and practices of the "two rights" mortgage loans in different places are different, and there is a lack of perfect laws, regulations and institutional protection, which need to be gradually improved through reform pilot projects.

Prudently and steadily carrying out the pilot project of "two rights" mortgage loans is to meet the practical needs of the development of agricultural modernization, appropriate scale operation and new urbanization, and is conducive to invigorating rural land assets and enhancing the efficiency of rural land resources. we will promote the innovation of rural financial products and services, inject new vitality into rural finance, improve the availability and convenience of farmers' loans, and accelerate the development of agricultural modernization.

Ensure that farmers become real insiders, participants and beneficiaries

Q: what is the general principle of the pilot project?

A: first, it is orderly in accordance with the law. The pilot project should be carried out within the scope of approval, and then be steadily promoted after the pilot project has accumulated experience. If it involves breaking through the relevant legal provisions, it shall be submitted to the standing Committee of the National people's Congress for authorization to suspend implementation in the pilot areas.

Second, it is voluntary. The "two rights" mortgage loans are voluntarily applied by farmers and other agricultural operators to ensure that the peasant masses become real insiders, participants and beneficiaries.

The third is to advance steadily. On the premise of safeguarding the legitimate rights and interests of farmers, properly handle the relationship among farmers, rural collective economic organizations, financial institutions, and the government, and cautiously and steadily promote the pilot work.

Fourth, the risk is controllable. Adhere to the bottom line that the nature of public ownership of land will not change, the red line of cultivated land will not be broken, and the interests of farmers will not be harmed. We will improve various supporting policies in the pilot areas, prevent, control and defuse risks, and ensure the smooth and smooth implementation of the pilot work.

Giving "two Rights" Mortgage financing function to promote Rural Financial Innovation

Q: what are the main contents of the pilot project?

A: the pilot project is mainly carried out steadily in the following five areas:

The first is to give the "two rights" mortgage financing function. We should strengthen the construction of the system, guide and urge financial institutions to always take the maintenance, realization and development of farmers' land rights and interests as the starting point and foothold of the pilot reform, and implement the mortgage financing function of "two rights". Activate the property attribute of farmers' land usufruct.

The second is to promote the innovation of rural financial products and services. Financial institutions should combine the power attributes of "two rights" and increase innovative support in terms of loan interest rate, term, amount, guarantee, risk control and so on.

The third is to establish the mechanism of mortgage disposal. Financial institutions are allowed to adopt various ways to dispose of collateral and improve measures for the disposal of collateral on the premise of ensuring farmers' right to contract and basic housing rights. In principle, the assignee shall be limited to the scope of the relevant laws and regulations and the provisions of the State Council for the disposal of the mortgage of farmers' housing property rights.

The fourth is to improve supporting measures. Pilot areas should speed up the registration and issuance of confirmed rights, do a good job in the value evaluation of "two rights", establish and improve the transaction platform of rural land property rights, establish a professional service mechanism for "two rights" mortgage, transfer, and evaluation, and improve the rural credit system.

Fifth, strengthen support, coordination and cooperation. We will increase support and coordination in the areas of monetary policy, fiscal policy, regulatory policy, and insurance protection.

Carried out on the premise of protecting farmers' legitimate rights and interests and respecting their wishes

Q: what are the conditions for the selection of pilot areas? How to protect the legitimate rights and interests of farmers in the pilot process?

Answer: the pilot project of "two rights" mortgage loan takes the administrative area of county (city, district) as the unit. The pilot project of mortgage loan for the management right of rural contracted land is mainly carried out in rural reform pilot areas, modern agricultural demonstration areas and other areas with good circulation of rural land management rights, and farmers' housing property rights mortgage loans are piloted, in principle, the pilot areas for the reform of the homestead system led by the Ministry of Land and Resources are selected to carry out.

The pilot areas need to meet the conditions such as high registration and certification rate, sound rural property rights transfer transaction market, strong willingness of farmers to land transfer, good momentum of appropriate scale operation of agriculture, good rural credit environment, sound supporting policies and so on.

The CPC Central Committee and the State Council have repeatedly stressed that the relevant reform of the rural land system should be carried out on the premise of protecting farmers' legitimate rights and interests and respecting their wishes. In order to protect the legitimate rights and interests of farmers and guard against the potential risks of the pilot project, the guiding opinions put forward four requirements:

First, it is clear that the "two rights" mortgage loans are voluntarily applied by agricultural operators such as farmers, family farms and farmers' cooperatives to ensure that farmers become real insiders, participants and beneficiaries.

Second, it is stressed that we should adhere to the bottom line that the nature of public ownership of land will not change, the red line of cultivated land will not be broken, and the interests of farmers will not be damaged.

The third is to emphasize the need to support appropriate scale operation of agriculture and encourage the issuance of loans to agricultural operators with moderate scale of operation.

Fourth, the governments of the pilot areas are required to adopt interest subsidies, develop government-supported guarantee companies, use rural land property rights trading platforms to provide guarantees, and set up risk compensation funds to establish a "two-right" mortgage risk release and compensation mechanism.