It's not hard for farmers to get loans. Banks aren't afraid to lend.

"I would rather not have a financial subsidy of 100000 yuan, but also hope to get a loan of 1 million yuan." The new agricultural operators' thirst for finance is expressed in one word. Modern agriculture is inseparable from finance, and "difficult loans" and "expensive loans" have perplexed the main body of business for a long time and become "trouble for growth".

Premier Li Keqiang proposed to make finance a pool of running water to better irrigate small and micro enterprises, "agriculture, rural areas and farmers" and other real economy trees. At present, the overall supply of credit in China's rural areas is abundant, especially in the past two years, the targeted cut in the reserve requirements of agriculture-related financial institutions has released trillion-scale liquidity, it can be said that the financial "pool" is not short of water. However, financial institutions with "no shortage of money" are faced with the dilemma of "difficult loans". Due to the lack of mortgage guarantee, some banks are "unwilling to lend" and "dare not lend" to agriculture-related loans.

How to draw the running water out of the "pool", and how to solve the crux of farmers'"difficult loans" and banks'"difficult loans"? In July this year, the Ministry of Finance, the Ministry of Agriculture, and the CBRC issued the "guidance on Financial support for the Establishment of Agricultural Credit guarantee system." the Ministry of Agriculture seized the opportunity, complied with the trend, and actively promoted the establishment of a national agricultural credit guarantee system.

Why build--

Break the "bottleneck" of modern agricultural development and resolve the "growing troubles" of the main body of management

The central government requires policies, industries have urgent needs and space, financial institutions have the will and motivation, and there is a rare opportunity to solve rural financial problems. There is an urgent need for the government to design a "policy package" with richer contents, clearer levels and more efficient measures, which is composed of fiscal, financial and other tools.

The development of modern agriculture under the new normal puts forward new and higher requirements for financial services.

Han Changfu, minister of agriculture, pointed out that modern agriculture not only needs financial subsidies for "blood transfusion", but also needs to strengthen the function of "hematopoiesis" through financial capital, with finance as the link. intensive allocation and optimal combination of advanced elements such as labor, land, technology and capital, promote appropriate scale operation and industrial agglomeration of agriculture, stimulate the internal vitality of rural farmers, and enhance the driving force and competitiveness of agricultural development.

Compared with the requirements of the central government, the demand of new agricultural operators is more urgent. "the annual funding shortfall is more than one million yuan, which is really desperate." the vegetables we produce are directly supplied to Hong Kong, but we simply cannot get a loan because there is no collateral. During the interview, reporters heard such anxious words from time to time.

According to statistics, by the end of 2014, the number of professional households with an operating area of more than 50 mu had reached 3.18 million, the number of family farms had exceeded 870000, the number of farmers' cooperatives had reached 1.29 million, the number of leading enterprises of various types had exceeded 120000, and there were more than 1.15 million agricultural social service organizations. Compared with ordinary small-scale farmers, the traditional universal and simplified direct subsidies can no longer meet the needs of the development and growth of new operators, but their financial needs can not be effectively met due to various reasons. this has become the biggest "deficiency" of agricultural support and protection policy and a prominent contradiction in the field of rural finance.

In order to resolve the "growing troubles" of the new agricultural operators, there is an urgent need for the government to design a "policy package" composed of fiscal, financial and other tools with richer contents, clearer levels and more efficient measures.

Different from other industries, agricultural operators have few credit records and generally lack effective mortgage vouchers, so it is difficult for banks to establish credit relations with them, and they do not dare to borrow money. In the face of such credit difficulties, it is necessary to introduce third-party institutions to provide loan credit enhancement services to solve the problem of information asymmetry and ensure the smooth credit of both parties.

Zhang Taolin, vice minister of the Ministry of Agriculture, believes that through financial injection, a special agricultural credit guarantee institution should be set up, and the cooperation between "silver burden" and "political bank burden" should be carried out. build an "iron triangle" stability system supported by banks, guarantee institutions and agricultural operators, realize the integration of finance and finance to support agriculture, and pry financial capital to support modern agricultural construction by changing the mode of capital investment. It has given full play to the guiding and leverage role of financial funds.

"to centralize the financial support funds for 'agriculture, rural areas and farmers' to build an agricultural credit guarantee system is to integrate 'dead money' and 'change' into 'living money' and 'whole money'." Wang Zhaoxing, vice chairman of the CBRC, said so.

The central government has requirements and policies, industries have urgent needs and space, and financial institutions have the will and motivation. It can be said that now is the best time to build agricultural credit guarantee, and all parties have reached a consensus on the construction of agricultural credit guarantee. Ma Jiujie, a professor at the Institute of Rural Economics and Finance of Renmin University of China, believes that if a policy financing guarantee system that is not for profit is established from top to bottom throughout the country, and build a bridge between commercial finance and agricultural development, it can effectively solve the problems of "difficult loans" for farmers and "difficult loans" for banks. It is also a frequently used policy path in the world to truly achieve the level of the agricultural industry, the sustainability of financial development, the high efficiency of financial subsidies and the ultimate benefits for farmers.

How to build--

Government capital injection to set up provincial agricultural credit guarantee institutions

Agricultural credit guarantee must focus on modern agricultural development, especially grain production and new business entities, actively explore an effective operation model of agricultural credit guarantee in line with local reality, and timely establish a national agricultural credit guarantee alliance.

"the risk control ability of private financing guarantee institutions is relatively weak, and they will not focus on the relatively high-risk areas of agricultural credit." Zhang Chenghui, director of the Financial Research Institute of the Development Research Center of the State Council, pointed out that agricultural credit guarantee has high risks and low returns, and it is difficult to fully play its due role by relying entirely on market forces, and the government must do something in this regard.

It is widely expected that a special agricultural credit guarantee institution should be set up by financial injection. This year, the reform of the three agricultural subsidy policies clearly proposed to adjust 20% of the comprehensive agricultural subsidy funds and some incremental funds to focus on the establishment of an agricultural credit guarantee system.

Tao Huaiying, chief financial officer of the Ministry of Agriculture, pointed out that in the process of establishing an agricultural credit guarantee system, special attention should be paid to grasping the principles of policy, independence and concentration. In other words, agricultural credit guarantee institutions are mainly funded and led by the government, and in order to avoid the "marginalization" of agriculture-related guarantees caused by mixed operation, agricultural credit guarantee institutions and business operations, including legal persons, business, finance, assessment and management should be independent.

It needs to be emphasized that agricultural credit guarantee must focus on the development of modern agriculture, especially food production and new business entities. In this regard, Hu Jinglin, vice minister of the Ministry of Finance, stressed: "the funds for financial support for the construction of the agricultural credit guarantee system come from agricultural subsidies, and credit guarantee services must focus on agricultural development, and at the initial stage, we should give priority to planting and aquaculture. In the near future, it is especially necessary to highlight the support for the appropriate scale operation of grain."

"the agricultural sector should perform its duties in the construction and operation of the guarantee system, take the initiative, and conscientiously control the organizational structure, business direction, and project selection, so as to ensure that agricultural credit guarantees are farmers." Zhang Taolin stressed many times. The relevant documents also clearly require that policy-oriented agricultural credit guarantee institutions shall not guarantee the balance of qualified agricultural credit at less than 70% of its total guarantee scale.

The financial sector plays the most important role in promoting financial support for agriculture, and banks should also have strategic vision and bear corresponding responsibilities in the "bank-load" cooperation, and provide more concessions to the cooperative credit guarantee institutions, such as risk sharing, not charging or undercharging margin, increasing magnification, controlling the rise of loan interest rates, and so on. "We will improve the cooperation mechanism and risk diversification mechanism of banks, improve the performance appraisal and risk accountability mechanisms of banks, and improve the risk tolerance of financing-guaranteed loans for agriculture, rural areas and farmers." Wang Zhaoxing said.

"the urgent task is to set up provincial agricultural credit guarantee institutions as soon as possible." A relevant responsible person of the Ministry of Agriculture said that it is necessary to strive to establish and improve provincial agricultural credit guarantee institutions in two years, actively explore an effective operation model of agricultural credit guarantee in line with local reality, and timely set up a national agricultural credit guarantee alliance.

The establishment of agricultural credit guarantee institutions is also a major innovation and challenge for the agricultural sector. "unlike previous fiscal projects, the money can be invested at once, and the credit guarantee agency has been set up, and the money is always rolling there, so long-term planning should be done." Comrades in the agricultural sector who participated in the establishment of agricultural credit guarantee institutions are deeply responsible and under great pressure. To this end, the Ministry of Agriculture has repeatedly organized symposiums and workshops to sum up while studying to guide the agricultural departments at the provincial level to carry out their work.

How's it going--

With the accelerated pace of provincial establishment, all provinces are rushing to drop the "first burden", and sustainable management is the key.

Agricultural credit guarantee is in urgent need of modern management talents who understand both agriculture and finance, as well as carefully design the business model and scientifically establish the assessment system.

The Ministry of Agriculture grasps the agricultural credit guarantee system to the end and implements a regular dispatching and supervision system. It is understood that all provincial actions are on their way.

Chongqing Agricultural guarantee Co., Ltd. was established in 2006. since its establishment, Chongqing Agricultural guarantee Co., Ltd. has always persisted in providing financing guarantee and business cultivation services for new business entities, such as family farms, large farmers, farmers' cooperatives, agricultural enterprises and agricultural socialized service organizations. as of November 2015, a total of 7.7 billion yuan of guarantee loans have been provided for more than 2000 agriculture, forestry, animal husbandry and sideline projects. A few days ago, the municipal government plans to increase capital to more than 1 billion yuan by 2017, further improving the policy-oriented agricultural credit guarantee system covering 33 agricultural districts and counties.

According to a person in charge of the Jilin Provincial Committee of Agriculture, the plan for the newly established Nongtan Company in Jilin Province has been approved by the provincial government, with a registered capital of 4 billion yuan, which is jointly prepared by the Department of Finance and the Committee of Agriculture, and the chairman and general manager are recommended and appointed by the two departments respectively. The management implements the total score structure, the branch is the business center, and the head office focuses on assessing the scale of agricultural credit guarantee business, the number of projects, the quality and performance of agricultural services, risk control and so on. In this way, we can not only share financial, human and information resources, but also avoid local administrative interference in decision-making.

Compared with other provinces and cities, the finance of Hunan Province invests 10 million yuan each to establish provincial agricultural credit guarantee company offices in 63 counties and cities in the province, and focuses on the guarantee business at the county level. The next step is to set up branches of provincial agricultural credit guarantee companies in 27 of the major grain-producing counties in the province that do not yet have agricultural guarantee agencies, and stipulate that branches should be set up in cities and states with three or more branches to implement hierarchical vertical management.

Although the specific practices of setting up the agricultural guarantee system are different in different places, the focus is to establish independent provincial agricultural credit guarantee institutions first, and then extend the business through offices, branches and so on. Moreover, the pace is obviously accelerating. According to statistics, as of December 15, provincial agricultural companies in Beijing and Tianjin have started operation and have formed a relatively perfect agricultural credit guarantee system; Shandong, Gansu and other four provinces and cities will expand the scale and coverage of registered capital, form the agricultural guarantee system of the whole province. Seven provinces and autonomous regions, including Jiangsu and Sichuan, are preparing for construction, and nine provinces and autonomous regions, including Qinghai and Guizhou, have immediately implemented their formation plans after being approved by the provincial government, and the rest of the provinces and regions have also accelerated the pace of establishment. It is expected that most provinces will be officially listed by the end of this year and early next year.

"when will the business land?" This is an issue that people are more concerned about. The guarantee agencies that are being set up also have a timetable and are in a hurry to drop the "first load". "after the start of the business, there are three aspects that need to be considered early." Ma Jiujie suggested that, first, the guarantee leverage should be reasonably enlarged, which should not allow financial funds to precipitate, nor do non-agricultural business for impulse or target large enterprises, and find ways to strengthen the stickiness with new business entities; second, the assessment should not look at profits, but should focus on the scale of business, the number of projects, services for agriculture, risk control and so on. Third, the financial compensation policy should keep up, mainly to establish a reasonable guarantee cost subsidy and compensation system.

"build up" is only the first step, and people who want to "run it well" are the key. "in order to guarantee agricultural credit, we should not only understand finance, but also be familiar with agriculture." Jiao Taiwen of the Hubei Provincial Department of Agriculture said, "in the past, we mainly studied agricultural production technology and were good at using financial direct subsidies or investment to pry finance and social capital, but we lacked experience, and even less specialized personnel. To adapt to the new situation, the agricultural sector should not only establish and strengthen the awareness of modern agricultural finance, but also pay close attention to catch up on the lessons of rural finance, train and introduce financial talents, and strengthen the strength of rural finance. It is also necessary to establish a regular mechanism of good communication and cooperation with financial institutions. "

In finance, risk prevention is very important. Zhang Guoxiang, chairman of Hanhua Financial Holdings Co., Ltd., suggested: "guarantee institutions should do sophisticated risk management, adapt to the development trend of new financial forms such as Internet finance, and provide diversified products. Not only that, the government should also speed up the establishment of re-guarantee agencies within the service area to provide local financing guarantee agencies with industry 'stabilizers'. " It is understood that the establishment of a national agricultural credit guarantee alliance has been put on the agenda.

It is undeniable that there is still a long way to go to establish and improve the agricultural credit guarantee system. It arises at the historic moment to solve the "bottleneck" of modern agricultural development, and will thrive in serving "agriculture, rural areas and farmers".