Land income guarantee loan gives farmers a taste of benefits.

At Longshan Agricultural Farm in Dongshengyong Town, Longjing City, Yanbian Prefecture, Jilin Province, legal representative Wang Lichen and workers loaded high-grade packaged rice into trucks, ready to be delivered to designated customers.

"the farm has formed an integrated model from planting, harvesting, processing to sales. Thanks to the land income guarantee loan, the current scale has been formed. " Wang Lichen said.

In 2003, the farm was just a small workshop. "in the past, banks gave small loans of less than 100000 yuan to farmers, and the land that could be transferred was limited, and the interest was not low. Even if they borrowed money from relatives and friends, they got one point of interest." He said.

In 2013, Jilin Province launched land income guarantee loans. As a pilot project, the planting scale and income of farmers in Longjing City immediately changed greatly.

"after applying for a land income guarantee loan, the state and municipal governments still have a discount, reducing the cost of financing." 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 into a medium-sized processing plant with an annual processing capacity of 2 million jin.

"the loan process is convenient and fast, and you can borrow as much as you plant." Laotougou Town, Longjing City, Yingyan Village villager Li Renshan said. In just two years, his contracted land has changed from 30 hectares to 60 hectares, and his annual income has skyrocketed to NT $500,000 to NT $600,000. this year, he has borrowed another NT $600000 to buy agricultural machinery.

"Land income guarantee loans have invigorated cultivated land resources and effectively solved the problems of farmers' financing difficulties and high financing costs." Zhang Guofan, chairman of Longjing Real right financing Agricultural Development Co., Ltd., said.

Financial institutions are "afraid" of the collateral of agricultural loans, it is difficult to "pay attention" to the demand for small and scattered funds in rural areas, and the cost of opening up the immature rural financial market is high. Agriculture-related loans usually fall into such a stalemate. However, in the exploration of Longjing City, not only lower the loan threshold for farmers to taste the benefits, but also "turn around" has become a high-quality resource pursued by local financial institutions.

In order to solve the contradiction between banks and farmers on loan costs, Longjing municipal government first tried to 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.

In the actual loan operation, Longjing City has also set up a risk fund of 10 million yuan. Once the farmers default, they can first repay the bank through the risk fund, and then recover the compensation by the real right financing company through the transfer of land income.

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. Zhang Guofan believes that the responsibility and actions of the government have played an indispensable role in breaking the deadlock of difficult loans.

At present, Longjing City has issued a total of 137.811 million yuan in loans, with a minimum of 50000 yuan and a maximum of nearly 2 million yuan. It is expected that 100% land financing loans will be fully covered this year.

A drying tower more than ten meters high, a grain depot like a two-story building, and an electronic scale up to 8 meters long. In the farm compound of Lvjiang, Yingyan Village, Laotougou Town, Longjing City, large-scale production equipment is complete, which is more like a modern agricultural processing plant.

Since many local villagers went out to work, Lvjiang began to contract land for large-scale planting in 2010. As a result of the land income guarantee loan, his loan scale has increased 10 times than before, the contracted land scale has been expanded to 103 hectares, and now he has begun to purchase the surrounding farmers for unified grain processing, with an annual income of more than 1.5 million yuan.

In Longjing, land income security loans have helped 315 farms gradually take shape.

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.

Gao Menglin, director of the Jilin Provincial Financial Office, said that in addition to achieving full coverage of the land income guarantee loan business in the county as soon as possible, it will also expand the application field of the loan model with the participation of land, forest rights, grassland rights, aquaculture water surface and facility agriculture as breakthroughs.

"under the trend of agricultural industrialization, large-scale agriculture with large-scale production will become the mainstream, and land income guarantee loans can provide strong financial guarantee, so as to speed up the process of rural land transfer and bring about a new situation in which new types of agricultural operators continue to emerge." Said Zhu Guoping, executive deputy director of Jilin Rural Financial Research Center.