How does Modern Finance promote the Development of Agriculture

Premier Li Keqiang of the State Council presided over an executive meeting of the State Council on December 3, which was deployed to promote the Zhongguancun pilot policy on a larger scale, speed up the construction of a national demonstration zone for independent innovation, and further encourage people to start businesses and innovate. decided to increase tax support for rural finance to promote the reform and development of agriculture, rural areas and farmers.

I believe no one will object to saying that modern society is a financial society, but traditional agriculture, which has lasted in China for thousands of years, has not attracted enough attention and support from the modern financial industry for a long time. It has become an industry that has been neglected intentionally or unintentionally. With the development of traditional agriculture to modern agriculture, especially with the development of agricultural scale and industrialization and the need of optimizing agricultural structure, the support of agriculture to financial industry is becoming more and more urgent. it can also be said that the development of modern agriculture has been inseparable from the support of the financial sector. According to the actual situation of the whole country, there is a serious mismatch between the intensity of financial support and the current situation of agricultural development, which restricts the development of modern agriculture to some extent.

In the era of small-scale peasant economy, all each household needs is fertilizer seed money. Even if they have no money for the time being, they can overcome the difficulties through loans between their neighbors. After all, the amount is relatively small, which is the so-called "spring borrowing and autumn repayment". However, with the industrialization and large-scale development of modern agriculture, especially with the implementation of the national land transfer policy, some agricultural operators have long been separated from the identity of "small farmers", and the land transferred to their hands is often tens of thousands of mu. The need for means of production has also greatly increased, at this time it is difficult to meet the practical needs by relying on micro-loans between neighbors, and the only way is to seek help from financial institutions, that is, to apply for loans from financial institutions.

On the other hand, the financial banking industry is not only "contributing" to the development of modern agriculture, because with the support of the financial industry, the development of modern agriculture can not only increase its scale and industrialization, but also become more stable and reduce credit risk. in order to achieve a win-win situation with the financial industry. So, how to strengthen the support of financial industry to animal husbandry? On the one hand, enough attention should be paid to it from the government level, and practical measures should be taken. First of all, the government should actively create convenient conditions for financial support for the development of modern agriculture and introduce relevant preferential fiscal and tax policies. speed up the construction of modern agricultural loan guarantee center On the other hand, local financial institutions should also adjust their business ideas, speed up the improvement of the capital investment mechanism of finance to support the development of modern agriculture, and create a financial service model of the whole industry chain.

For a long time, the reason why the domestic financial industry does not support the development of agriculture is that the traditional small-scale peasant economy is difficult to scale and industrialize, and the assets of farmers are mainly reflected in the small amount of grain, livestock and poultry, and so on. For financial institutions, because these agricultural means of production are too much affected by market prices, epidemics, and so on, the loans of financial institutions will not be recovered if they are not careful. Therefore, there has always been a traditional understanding that "a family has a lot of money, but it doesn't count with hair". But in this way, farmers do not have the strength to expand the scale of agricultural production, form industrial management, and finally form a vicious circle, which hinders the expansion and strength of modern agriculture and reduces their ability to be lower than market risk.

It is gratifying to note that all the above work was involved at this executive meeting of the State Council chaired by Premier Keqiang. In order to further alleviate the problems of high cost of agricultural loans, high risks and difficulties in loans for low-income farmers, the meeting decided to extend the following two policies that have already expired until December 31, 2016: first, the interest income of farmers with small loans of no more than 50,000 yuan from financial institutions will be exempted from business tax and be included in the taxable income of enterprise income tax at 90%. Mobilize the enthusiasm of financial institutions to lend to farmers. Second, the premium income of insurance companies carrying out planting and aquaculture insurance business shall be included in the taxable income of enterprise income tax at 90%, so as to expand insurance protection and services for farmers. At the same time, in view of the situation that farmers' loan demand is mainly concentrated in the range of 50, 000 yuan to 100000 yuan, the limit of small loans for farmers who enjoy tax concessions will be raised from 50, 000 yuan to 100000 yuan. and the preferential tax policy of reducing the business tax on the insurance income of county rural financial institutions by 3% will be extended until the end of 2016. Let the policy of benefiting farmers continue to work to promote agricultural development and increase farmers' income.

It can be said that these measures not only have a strong realistic pertinence, but also greatly mobilize the motivation of financial institutions and insurance companies to support agricultural development, which is undoubtedly worth looking forward to.