Industrial and Commercial Capital going to the Countryside: relying on the Mechanism to avoid risks

A few days ago, the Ministry of Agriculture, the Central Agricultural Office, the Ministry of Land and Resources, and the State Administration for Industry and Commerce jointly issued the "opinions on strengthening the Supervision and risk Prevention of Industrial and Commercial Capital Leasing of farmland" (hereinafter referred to as "opinions"), making clear provisions on strengthening the standardized management of industrial and commercial capital leasing of agricultural land, improving the risk prevention mechanism, and strengthening supervision during and after the event.

There are both advantages and disadvantages: the area of agricultural land leased by industrial and commercial capital reaches 38.825 million mu.

In recent years, industrial and commercial capital to the countryside to contract agricultural land has developed rapidly. According to the statistics of the Ministry of Agriculture, the area of contracted land flowing into enterprises has grown at an average annual rate of more than 20% in the past three years. By the end of 2014, the area of contracted land flowing into enterprises had reached 38.825 million mu, accounting for about 10% of the total area of contracted land transferred by farmers in the country.

Chen Xiaohua, vice minister of the Ministry of Agriculture, pointed out: judging from the actual operation, the entry of industrial and commercial capital into agriculture has both advantages and disadvantages: on the one hand, industrial and commercial capital can speed up the transformation of traditional agriculture and the construction of modern agriculture; on the other hand, industrial and commercial capital leases agricultural land for a long time and on a large scale, it is easy to aggravate the tendency of cultivated land "non-grain" and "non-agriculturalization", and there are many hidden dangers.

"what we are most worried about is the combination of industrial and commercial capital and administrative power. after all, the land issue involves the vital interests of hundreds of millions of farmers, and we should consider not only economies of scale, but also the maintenance of farmers' livelihood. The promulgation of the "opinion" is the realistic need to guide the orderly circulation of land and promote the development of modern agriculture under the background of industrialization and urbanization. " Chen Xiaohua said.

Strengthen supervision: put an end to the hidden dangers of "non-grain" and "non-agriculture"

In many areas, large tracts of arable land originally used to grow wheat and corn before industrial and commercial capital went to the countryside to lease land have been converted to cash crops.

Why does the rural capital not grow grain? He Xuefeng, director of the China Rural Governance Research Center and doctoral supervisor of Huazhong University of Science and Technology, found that there is no advantage for capital to go to the countryside to grow grain.

Nationwide, large amounts of capital going to the countryside for farming has pushed up land rents, some reaching 1000 yuan or more per mu per year. However, the annual net income of one mu of land is only about 1000 yuan, so it is difficult to make a profit. " He Xuefeng said.

In this regard, the "opinions" issued this time make clear provisions on the areas of encouragement and restriction for industrial and commercial capital to go to the countryside. "We encourage industrial and commercial capital to focus on developing capital-and technology-intensive industries, and to engage in the processing and circulation of agricultural products and the socialization of agriculture. If industrial and commercial capital leases agricultural land for a long time and on a large scale, we will also impose restrictions. It is strictly forbidden to use the government or grass-roots organizations to force farmers to transfer agricultural land by setting targets and setting tasks. We strictly prohibit illegal acts such as changing agricultural use without authorization, seriously damaging or polluting leased agricultural land, and this bottom line cannot be broken. " Chen Xiaohua said.

Perfecting the mechanism: establishing the risk guarantee fund system

Experts pointed out that at present, the core of the research on access supervision methods by relevant departments is how to define whether industrial and commercial enterprises lease agricultural land for a "long time and large area", and how local governments control industrial and commercial enterprises to lease land within the upper limit. Exit mechanism and sanctions after breaking the upper limit, and how to scientifically establish a risk guarantee fund system.

"in order to avoid the emergence of large capital crowding out small farmers in rural areas, to avoid large-scale mergers of land, and to prevent a large number of farmers from losing their dominant position in management, we must adopt a cautious attitude towards industrial and commercial enterprises to lease contracted land on a large scale for a long time." Han Jun, deputy director of the Office of the Central Financial and Economic leading Group, believes that there is an urgent need to explore and establish a strict access and supervision system for industrial and commercial enterprises to lease farmland to farmers.

In order to guard against the risks that may be brought about by industrial and commercial capital leasing of agricultural land, the opinion puts forward three measures: first, industrial and commercial capital leasing of agricultural land should be regulated by the open market. It is strictly forbidden for industrial and commercial capital to force farmers to transfer agricultural land through the government or grass-roots organizations by setting targets and setting tasks. The second is to guide industrial and commercial capital to sign standardized transfer contracts with farmers, and to clarify the use of land transfer, risk protection, land reclamation, mortgage guarantee and re-circulation, as well as liability for breach of contract. The third is to encourage all localities to establish and improve the risk guarantee fund system for leasing agricultural land to prevent damage to the rights and interests of contracted farmers. " Chen Xiaohua said.