"Politics, Banking and Insurance" solves the problem of Financial support for Agriculture

Huicheng District, Huizhou City, Guangdong Province, gives full play to the incentive and policy-oriented role of financial funds for supporting agriculture, makes full use of finance as an important means of resource allocation, actively innovates financing guarantee services, and launches the business of "government, bank and insurance". Leveraging social capital into agricultural infrastructure and industrial development is welcomed by agricultural enterprises and farmers.

The "government banking insurance" is a new type of financing product which is guaranteed by funds invested by the government, banks and other financial institutions provide loans to those who meet the loan conditions, and insurance companies provide guarantee insurance for the above-mentioned loans. Their specific actions are as follows:

Finance is used as leverage to pry financial resources. Huicheng District gives full play to the leverage of financial funds to enlarge the amount of financial support by the ratio of 1 ∶ 14. In 2014, the amount of support funds for the first phase of the "government, banking and insurance" loan was 5 million yuan, and the Postal savings Bank arranged the loan within the ratio of 1 ∶ 14, that is, the maximum amount of the first loan was no more than 70 million yuan. On the basis of summarizing the experience of "government, banking and insurance" in 2014, it is planned to invest 10 million yuan in cooperative agricultural loans in 2015, leveraging 140 million yuan in bank loans.

All parties participate in the financing guarantee. Huicheng District gives full play to the advantages that government departments are familiar with new agricultural operators, banks and insurance companies are familiar with project investigation and evaluation and risk control, so as to complement each other. The government departments shall recommend the borrowers within the scope of the "four major business entities" to the cooperative banks; the cooperative banks shall issue loans to the operators who meet the loan requirements; and the cooperative insurance companies shall provide guarantee insurance services for the principal of the above loans.

The government guarantees to prevent and control financial risks. Government departments, cooperative banks and cooperative insurance companies shall bear the liability for overdue payment of loans in accordance with the agreement signed. In other words, once the operator is unable to repay the loan, the relevant risks will be shared by the bank, the insurance company and the government according to the agreement, in which the insurance company will bear the risk with 1.5 times the premium and the government will bear the limited liability with the margin. The first phase of the "government, banking and insurance" loan has been accepted by 15 enterprises and applied for 53.5 million yuan of loans. the loan business of 12 enterprises has entered the examination and approval procedures of the banking and insurance departments, and 41 million yuan of loans have been issued as of March, and other enterprise loans will be issued gradually.

Loans are subsidized to reduce financing costs. Government departments guarantee insurance premium and proportional loan interest, which helps to reduce the financing cost of operators. In 2014, Huicheng District invested 8.6 million yuan to implement "government, bank and insurance" cooperative agricultural loans, of which 5 million yuan was used for deposit, 1.4 million yuan for premium subsidy and 2.2 million yuan for loan discount.

However, due to the high risk of agricultural production and the weak anti-risk ability of the main body, the "government, bank and insurance" business is still insufficient in risk control. How to continue to improve the way of financial support for agriculture, pry financial resources, effectively prevent and control risks, we need to continue to explore and innovate in practice. In this regard, Ma Jianan, director of the leading Group Office of Modern Agricultural demonstration Zone Construction in Huicheng District, suggested:

Change financial direct input into indirect input and one-time investment into lasting investment. From direct financial input to indirect investment, we will encourage more financial and social funds to be invested in agriculture and rural areas through measures such as interest discounts, incentives, subsidies, risk compensation, tax and fee relief and so on.

We will expand the financial discount area of loans for agriculture-related projects and lower the threshold of interest discount. Social capital investment in agricultural projects is mainly supported by the way of discount interest on loans, reduce the capital cost of investors, create an atmosphere of "as long as you invest in agriculture, you can enjoy discount interest", and increase the proportion of discount funds in financial funds for supporting agriculture.

Make full use of reward and subsidy means to support the construction of agricultural projects. Agricultural construction projects that are in line with the plan shall be treated equally regardless of the construction subjects, different incentive and subsidy standards shall be implemented according to different project construction contents, and investors shall be given one-time incentives and subsidies to the approved investment.