Where is it difficult to realize the right of land management?

Risk compensation for mortgage loan of agricultural land management right

Editor's note: new-type agricultural operators are generally faced with difficulties in capital development, and difficulties in evaluation, guarantee and mortgage have become "obstacles" in the way for large agricultural households to borrow money from financial institutions. In March this year, the people's Bank of China launched a pilot method of two-right mortgage, and various provinces began to try it one after another.

However, in the process of advancing, there are still many problems in front of us: where is the path for the government to explore? How to solve the propulsion problem? How to prevent and control the risk of mortgage? Let's see how Hanshou County in Hunan Province does it.

On August 8, at the 700 mu rice planting base in Jinpanling Village, Yanwang Lake Town, Hanshou County, Changde City, Hunan Province, Zhang Changyuan, a major grain grower, looked at the good growth of the seedlings inserted more than half a month ago, and his hanging heart finally fell to the ground. Had it not been for the loan of 1 million yuan from local agricultural and commercial banks, the harvester and rotary tiller could not be bought back, and the fertilizer could not be bought back, not only the harvest of early rice would have been affected, but also the growth period of late rice would have been delayed for half a month, and it would be difficult to avoid the cold dew wind, the natural enemy of late rice growth.

In the Wuling Mountain area, qu Meisheng in Luoheping Village, Eryou Township, Yuanling County also received a loan of 1 million yuan. With this fund, his leisure farm will open smoothly in September this year.

Although the loans of 1 million yuan each received by Zhang Changyuan and qu Meisheng came from different banks, they all benefited from the same loan project for the people-- the mortgage loan for the right to operate rural land.

From Hanshou pioneered and explored at the grass-roots level as early as 2011, to 2014, Hanshou, Yuanling and other eight counties (cities) became the first batch of rural contracted land management right mortgage loans in Hunan, and then became a national pilot county by the end of 2015. Formal pilot has been going on for more than two years. What is the progress of the mortgage loan of rural land management rights in Hunan? What are the risks? With these thoughts, the reporter went to Hanshou and other places to conduct field interviews and investigations.

1. How to innovate in work?

-- confirmation of the right to issue the certificate first, the first to evaluate the value, and the scientific way of mortgage

Hunan is a typical agricultural province, the main body of new-type agricultural operators are generally faced with the difficulties of capital development, and the difficulties of evaluation, guarantee and mortgage have become obstacles in the way for large agricultural households to borrow money from financial institutions.

Is it old-fashioned or bold? Zhang Yexiang, director of Changde Agricultural Economic Bureau and senior economist, has been looking for the answer to the problem in practice: "three years ago, there were both policy 'minefields' and legal forbidden areas for mortgage loans for rural land management rights, but they can be done without prohibition by law. therefore, we can try first, the contract right cannot be used as mortgage, but the management right can be separated, so why can't the management right be used as a mortgage loan? Wade out a new way of reform. " With the support of Changde Agricultural Economic Bureau, Hanshou County decided to be "the first person who dared to eat crabs."

In order to solve the financing problem of agricultural operators, Hanshou County launched an attempt of mortgage loans for the management rights of Yongfeng Huasheng Micro-loan Company in 2011, giving mortgage loans to farming contractual management rights with a lease period of more than 10 years, with a total of 70 loans. However, due to the dual resistance of policy and law, the overall effect is not obvious. The introduction of the No. 1 document of the Central Committee in 2014 has cleared the policy obstacles.

If the mortgage loan is to be carried out, the certificate of confirmation of authority must be issued first. Hanshou County will speed up the work of confirming the rights of rural land to ensure that it is fully completed in September this year.

The management right needs to be mortgaged, and how to evaluate the value of the land has become the key point. Hanshou County pioneered the value evaluation method of "tripartite identification" in the country: for small loans, it is clear that the county land transfer service center, the undertaking financial institution, and the person of the management right are the main body of the evaluation, which shall be jointly negotiated and evaluated by the three parties; for loans of more than 500000 yuan, it shall be determined by the expert evaluation committee.

In fact, the land that needs to be mortgaged for large loans has a larger operating area, but in form, it is the certificate of contracted management right of farmers. However, Hanshou farmers with only 1.35 mu of land per capita obviously cannot meet the mortgage conditions by relying solely on the contracted area to mortgage. Therefore, Hanshou County adopts two combination methods to solve the mortgage difficulties: one is that farmers have a small amount of their own contracted land + transferred large-scale land; the other is that farmers have a small amount of their own contracted land + the contracted management rights obtained through public bidding (such as the transformation of low-lying lake fields).

In this way, "there is a contract management certificate mortgage, unlicensed transfer contract mortgage." Li Juan, deputy director of the Agricultural Economic Bureau of Hanshou County, said that the mortgagor signed a mortgage contract with the financial institution on the basis of the value recognition letter, and the county economic administration took back the original "land management right certificate" or "transfer contract" as escrow and issued the "other item warrant". The mortgagor applies to the financial institution for a loan on the basis of the "other item certificate", and the bank generally issues the loan at 40% of the assessed value.

2. What is the difficulty of pushing forward?

-- it is difficult to evaluate and deal with accurately, it is full of variables and financial risks are high.

On March 20, 2014, Hanshou County issued the first land management right mortgage loan in Hunan Province with an amount of 500000 yuan. so far, this work in Hunan Province is gradually advancing, and the pilot county has led the non-pilot county to carry out the land management right mortgage loan. The reporter learned from the Changsha Central Branch of the people's Bank of China: as of the end of June this year, the balance of mortgage loans for the management rights of rural contracted land in Hunan Province was 270 million yuan.

"in terms of the total loan balance, the loan balance of eight pilot counties accounted for 49.8%, while as of June this year, the loan balance of Hanshou County reached 54.92 million yuan, accounting for nearly 20%." According to the analysis of a rural economic expert in Hunan, only from the above figures, the current land management right mortgage loan presents a pattern of "one county contributes most, but the overall progress is slow".

Why is the progress slower? According to the analysis of people in the industry, from the current pilot project, there are mainly three difficulties: the evaluation is difficult to be accurate, the disposal is full of variables, and the financial risk is high.

The evaluation value affects the amount of loans, so the accuracy of the evaluation of the value of management rights will directly affect the issuance of loans. Hanshou calculates the land value by "annual rent × operating period + aboveground cultivation value", but this evaluation method is difficult to be accurate even for the main business project "two water" crops-rice cultivation and surface farming. Tang Fangliang, vice president of Hanshou Agricultural Commercial Bank, believes that there are many kinds of surface farming, but the production of most surface farming can not be accurately calculated according to reality, so it can only be calculated according to conventional production, and its value can only be evaluated by a discount of 8.5%. The rent of rice fields is easily affected by the market and the weather. In the event of natural disasters, the value of rice production estimated in advance will be much higher than the actual value.

Hanshou Agricultural Bank is experiencing this kind of trouble this year: at the beginning of this year, the bank estimated the rice yield of some major rice growers on the basis of 800 jin per mu, but because early rice suffered a severe flood in early July this year, it is generally necessary to reduce the yield by 400 jin per mu. Natural disasters like this have brought annoyance to disposal, and once the harvest is gone or production is reduced, it will inevitably bring risks. If someone is unable to repay the loan in time, then the assessment of the disposal project will lack production and only rent.

In Tang Fangliang's view, the potential disposal risks are much more than these. On the one hand, if you do not use the national trading platform, only in the county or surrounding areas re-circulation, the disposal space is narrow, resulting in not many customers, the price is not high, or even can not be disposed of, then the project to be disposed of will become a pile of waste. On the other hand, once there is a dispute or even the boss running away due to poor management, it will cause more trouble. for example, if the contractor does not get the rent, he may get the land back from the operator, resulting in the land management right can no longer be transferred; and if the operator, especially the non-local operator, is easy to be preempted by creditors, so it will be difficult to deal with.

"for financial institutions, risk control is our lifeline. Due to the short operating time, although there are no non-performing loans in Hanshou, but the risk is potential, we have to predict in advance. We know that the hidden dangers are greater, so we dare not act too hastily. " Zeng Yunxiang, deputy governor of the Hanshou branch of the people's Bank of China, said.

3. How to prevent the risk?

-- two kinds of guarantee sharing three lines of defense disposal Quartet professional evaluation

In reform, only innovation can overcome difficulties.

The first hurdle of innovation in Hanshou County is to improve the evaluation method. Hanshou County evaluates the value of land by introducing Tuliu Network as a third-party organization, and through the analysis of big data, this paper makes an accurate evaluation of the value of management rights from six aspects: light water source, soil conditions, topographic conditions, policy planning, development and regional economy. After the land flow network issued the evaluation report, the price was determined by farmers, banks, land transfer center and land flow network, and the land value was finally determined.

From the previous "tripartite identification" to the current "quadripartite assessment", it not only helps large agricultural households avoid operational risks and can choose suitable agricultural projects more scientifically, but also enables financial institutions to avoid financial risks caused by incorrect evaluation.

What should a large agricultural family do if he cannot afford to repay the loan? "the government cannot arrange it or act as a babysitter. The government mainly builds a platform to guide the operation of the market." Yu Xiqiong, member of the standing Committee of Hanshou County Party Committee and deputy county magistrate, said. As a result, Hanshou introduced policy guarantee agencies-two guarantee companies as financial counter-guarantees in 2014, and later introduced commercial guarantee agencies to participate in the guarantee. On March 18, 2016, the first land management right mortgage loan guaranteed by an Internet company was issued.

"Policy guarantee agencies are the first line of defense, commercial guarantee agencies are the second line of defense, and we have a third line of defense to control risks." The third line of defense referred to by Tang Fangliang is the compensation mechanism implemented by the government for risk compensation. During the prescribed pilot period, Hanshou County established 5 million yuan in risk compensation, which was supplemented every year according to the actual amount of loan risk compensation, and the proportion of risk compensation for bank loan losses increased from the original 10% to 20%. Yang Chang, secretary of the Hanshou county party committee, said: if the total amount of mortgage loans for land management rights reaches 150 million, the proportion of risk compensation can be increased to 30%.

"We should not only improve our ability to share risks, but also enhance the efficiency and effectiveness of mortgage loans." In Zhang Yexiang's view, as far as promoting the whole mortgage loan work is concerned, it is not only necessary to build a "safety wall" with three lines of defense to jointly bear risks, but also to form the "loan power" of mortgage work from three aspects: confirming rights according to quality and quantity, establishing and perfecting an efficient and useful information management system, and exploring the mechanism and form of commercial banks' mortgage under the guidance of the market. With the drive of "loan motivation" and the protection of the "safety wall", financial institutions can really reduce risks, farmers can earn more, and agriculture can add vitality.