Four factors lead to difficulties in loans for farmers 'professional cooperatives

Since the implementation of the Law on Farmers' specialized Cooperatives, farmers' specialized cooperatives have shown a trend of rapid development, which has injected vitality into promoting the development of modern agriculture. Cooperatives connect farmers and reach out to the market, which is becoming a new engine to promote the development of modern agriculture. However, as a new type of mutual economic organization marked by farmers' voluntary union and democratic management, the difficulty of loan has become a bottleneck restricting its further development and growth in the process of development. Taking Yongqing County of Hebei Province as an example, our reporter explores and studies the four factors that lead to the difficulty of loans for farmers' professional cooperatives.

At the end of February 2015, the total number of registered farmers' cooperatives in Yongqing County, Hebei Province reached 337, including 13 provincial-level peasant cooperative demonstration cooperatives and 32 municipal peasant cooperative demonstration cooperatives, with a capital contribution of 370 million yuan and 2085 members. Radiation led more than 50, 000 farmers, helped farmers increase their income by 220 million yuan, and the per capita net income of member households reached more than 9000 yuan. According to a survey on the financing situation of farmers' professional cooperatives in Yongqing County, 182, accounting for 54 percent, were affected by the lack of bank loans, and 89 had a strong demand for loans, accounting for 26.4 percent. By the end of February 2015, only three farmers' specialized cooperatives in Yongqing County had credit business with banks, rural credit cooperatives and other agriculture-related financial institutions, accounting for 0.89 percent of the total number of farmers' specialized cooperatives in the county and 3.4 percent of the loan demand cooperatives.

The main factors leading to the loan difficulty of Farmers' specialized Cooperatives

First, it is difficult to find a mortgage. Most of the farmers' professional cooperative members buy shares in the form of household contracts or management, and there is a lack of mortgaged assets, and the mortgages of cultivated land, homestead, factories and other real estate in cooperatives are subject to legal restrictions. movable property such as grain, fruit, vegetables, poultry storage and other movable property often do not meet the loan collateral standards stipulated by financial institutions. Under the existing loan conditions of financial institutions, financial institutions usually require borrowers to provide corresponding mortgages to reduce the risk of default, thus making it more difficult for cooperatives to obtain loans from formal financial institutions.

Second, it is difficult to seek guarantee. According to the survey, at present, the market access threshold of farmers' cooperatives is lower than that of ordinary enterprises. as long as a cooperative has more than 5 farmers, it can be registered without cash registration. The excessively broad market access conditions have led to the rapid development of cooperatives in recent years, most of which are still in the primary agricultural production stage. In the field of sales, they can only simply organize production according to the market situation, and it is difficult to adapt to market changes. High market risk and natural disaster risk, coupled with long operating cycle and low profits of agricultural projects, all contribute to the high risk of farmers' cooperatives. It makes it difficult for cooperatives to find related enterprises to guarantee, and commercial guarantee companies are also unwilling to provide guarantees because of their unstable loans, risk diversification and low returns, which restricts their effective access to loans.

Third, it is difficult to regulate oneself. According to the survey, at present, most farmers' professional cooperatives are in the early stage of growth, with non-standard internal management, imperfect financial system, and loose institutional management, and some of them have only applied for business licenses in the industrial and commercial sector. it is a legitimate organization in name, but its functions can not be brought into full play. It is far from the conditions of "clear property rights, standardized management, strong profitability and repayment ability" required by financial institutions to lend, which makes it difficult for financial institutions to meet their loan needs.

Fourth, it is difficult for finance to restrict investment. At present, although agriculture-related financial institutions include rural cooperative financial institutions (rural credit cooperatives, rural cooperative banks), Agricultural Bank, Agricultural Development Bank, Postal savings Bank, village banks and so on, among them, only rural cooperative financial institutions really carry out financial services for farmers' professional cooperatives, a single rural financial financing channel can not meet the capital needs of farmers' professional cooperatives. At the same time, under the influence of the assessment orientation that financial institutions value their own benefits over social benefits, immediate interests over long-term development, and deposit and loan scale over development quality, grass-roots financial institutions are short-term and eager for quick success and quick benefits. lack of the environment and power to cultivate and excavate the rural financial market. In addition, the lack of innovative incentive mechanism, working mechanism and innovative professionals in rural small and medium-sized financial institutions can not tailor financing products for farmers' professional cooperatives, which restricts the effective investment of financial institutions' loans.

Countermeasures and suggestions on effectively increasing the loan input of Farmers' specialized Cooperatives

First, establish and improve preferential policies such as land transfer mortgage and taxation. The relevant departments of the state should improve the laws and regulations on the mortgage and circulation of rural land as soon as possible, transfer the land management rights in the hands of farmers with compensation, and introduce corresponding preferential tax policies to provide discounted interest for the loans of farmers' professional cooperatives. reduce the loan cost burden.

The second is to improve the credit guarantee system of farmers' professional cooperatives. Guarantee organizations shall be established with joint investment by relevant government departments and leading enterprises to provide loan guarantee business for farmers' professional cooperatives. The financial department should increase capital investment, expand the scale of guarantee, enhance the guarantee capacity, and promote the healthy development of guarantee companies. Establish a mutual guarantee organization. We will vigorously implement the loan co-insurance system, and cooperatives will organize their members to sign co-insurance agreements in accordance with the voluntary principle, so as to improve the ability of members to obtain loans in the form of mutual protection, mutual benefit and shared risks. Rely on the Farmers' Professional Cooperative Federation to organize farmers' professional cooperative credit guarantee companies to provide credit guarantee for member units and their members.

The third is to guide farmers' professional cooperatives to establish a standardized internal control system. The relevant departments should strengthen the standardized management of farmers' specialized cooperatives, strictly examine and approve the procedures for the establishment and change of farmers' specialized cooperatives, urge them to establish and improve internal management rules and regulations, and strictly implement the relevant financial and accounting systems of the state. guide the healthy development of farmers' specialized cooperatives.

Fourth, improve the rural financial service system. We will continue to give full play to the role of rural cooperative financial institutions as the main force in supporting agriculture, increase the line of credit loans to legal persons and general members of farmers' specialized cooperatives, and explore financial products that meet the needs of farmers' specialized cooperatives. We will improve new businesses such as rural housing mortgage loans and circulation mortgage loans for rural land contractual management rights. We will further relax the rural financial market access policy, provide a broader development space for new rural financial institutions such as village banks, rural mutual aid cooperatives and micro-loan companies, strengthen the financial team of supporting agriculture, and broaden the development field of supporting agriculture.