Land income guarantee loan to solve the bottleneck of Grain production

Capital is an indispensable important capital for the development of grain production. Without sufficient funds for production, grain production cannot be carried out.

With the emergence of a large number of new agricultural operators, such as large grain growers, family farms, farmers' professional cooperatives and so on, the demand for funds for grain production is increasing day by day. How to solve the financial problems needed by these grain producers has become a new topic for all localities to explore.

In order to solve the contradiction between banks and farmers on loans, Jilin Province launched land income guarantee loans in 2013. The Longjing municipal government will try first and give full play to the role of the platform with its own credibility to match the two. The local real right financing Agricultural Development Co., Ltd., with large land transfer households such as family farms and professional farms as the main borrowers, uniformly mortgaged the land management rights to help them win financial support from financial institutions.

Wang Lichen, who was a small grain production workshop in 2003, is now the legal representative of Longshan Agricultural specialized Farm. With a loan of 1 million yuan a year, Wang Lichen's farm has not only an average annual grain output of 1 million jin, but also changed from a small workshop to a processing enterprise with an annual processing capacity of 2 million jin of grain.

Although the land income guarantee loan method has not been produced for a long time, it shows strong vitality.

Break the bottleneck of grain production

Different from small-scale grain production, the grain production scale of new agricultural operators such as large grain growers, family farms and farmers' professional cooperatives is relatively large. At least dozens of mu, more than hundreds of mu, or even tens of thousands of mu.

The seasonal characteristics of grain production determine that producers must make large-scale capital investment in advance.

The production time of major grain varieties in China, such as wheat, rice and corn, generally takes several months, and the production of wheat takes more than half a year. Before the grain is harvested, the input of seeds, chemical fertilizers, pesticides, labor and machinery all need to be advanced by producers.

With the expansion of the scale of grain production, the funds that need to be advanced will naturally increase substantially.

Compared with the production of efficient cash crops, the income of grain production is relatively low. Relying on the strength of the new agricultural operators themselves, it is difficult to have sufficient funds to support grain production.

In real life, it is not difficult to see that, on the one hand, new agricultural operators are springing up like bamboo shoots after a spring rain, on the other hand, some new agricultural operators, such as young seedlings, are vulnerable to drought or waterlogging. Of course, there are many reasons, but the capital bottleneck is one of the most important reasons.

With the popularization of agricultural mechanization, in the rural areas of our country, especially in the plain areas, the new agricultural operators intend to expand the scale of cultivated land transfer with the support of the national preferential agricultural policy. However, more money is needed after the expansion. Without the support of the financial sector, we can only hope for plums to quench our thirst.

Land income guarantee loan not only solves the problem of capital investment in small-scale grain production, but also provides a guarantee for producers who expand the scale of grain production.

Promote the development of grain production

Grain is a special commodity that people need for three meals a day. As the most populous country in the world, China's grain production should not be relaxed at any time.

Nowadays, with the improvement of people's income level, although the consumption of food rations is decreasing, the consumption of meat, poultry, eggs and milk is increasing. Most of the meat, poultry, eggs and milk are derived from grain transformation. Without the stable and sustained growth of food production, it will not be able to meet the increasing living needs of modern people.

It is a wise choice to maintain the stable and sustained growth of grain production and promote the development of new agricultural operators such as large grain growers, family farms, farmers' professional cooperatives and so on.

The main body of the new agricultural operation not only has a large scale of production, but also has a relatively high level of modernization. The wide application of modern science and technology and mechanization can greatly increase grain output per unit area.

The rapid development of industrialization and urbanization in China has brought about the transfer of a large number of rural labor force. In 2014, there were nearly 274 million migrant workers in China. In rural areas where there is a shortage of labor force, it is unrealistic to rely solely on "386015" (women, elderly, children) farming. These people with limited scientific and cultural level and lack of physical strength engage in grain production, either extensive management and low grain output; or abandon the land, resulting in a waste of valuable arable land resources; or let the labor force of migrant workers go home to farm seasonally, which can not rest assured that enterprises using migrant workers lack labor in the short term, affecting production, and also allowing these workers to reduce their income from doing business and increase their expenses.

Land income security loans to promote the development of new agricultural operators can solve the problem of rural labor shortage through land transfer or agricultural producers' cooperatives. At the same time, it has also improved agricultural labor productivity and promoted the development of grain production.

Since many local villagers went out to work, Lvjiang, a villager in Yingyan, Laotougou Town, Longjing City, began to contract land for large-scale planting in 2010. As a result of the land income guarantee loan, the scale of his loan has increased 10 times than before, and the scale of contracted land has been expanded to 1545 mu. Now it has begun to purchase the surrounding farmers for unified grain processing, with an annual income of more than 1.5 million yuan.

Open up a new way of rural finance

The vast countryside is not only rich in material resources, but also the financial market is vast and boundless.

The vast majority of China's population families are in rural areas, agricultural production needs funds, the circulation of agricultural products also needs funds, and rural residents need funds more. Under the condition of market economy, as long as the financial sector studies it carefully, it can constantly develop new financial products in rural areas.

The land income guarantee loan explored by Longjing City, Jilin Province, as a new product, has opened up the rural financial market. In Longjing, land income security loans have helped 315 farms gradually take shape.

In real life, one of the important reasons why some financial departments are unwilling to enter the rural market is that they are afraid of risks. The experience of Longjing City can be used as an example of risk sharing.

In the actual loan operation, Longjing City has set up a risk fund of 10 million yuan. After a year and a half of operation, without a single case of bad debts, a number of banks regarded Longjing as a "hot cake" and began to compete for loans. At present, Longjing City has issued a total of 137.811 million yuan in loans, and it is expected that 100% land financing loans will be fully covered this year. By the end of April this year, 31 of the 60 counties (cities and districts) in Jilin Province had carried out pilot land income guarantee loans, providing nearly 30, 000 loans to farmers, forest households, family farms and farmers' professional cooperatives, with a total amount of 1.43 billion yuan.

China's agricultural production has entered a new stage of development, and it needs the innovative support of the financial sector to maintain a good momentum of development under the new normal. The land income guarantee loan explored in Jilin Province provides a useful reference for the financial sector to support the development of agriculture, rural areas and farmers, and we would like to see this flower blooming inside and outside the wall.