4 million yuan how to pry 170 million yuan to support cooperatives

Editor's note: In order to solve the problem of "difficult loans" and "expensive loans" for cooperatives, the Ministry of Agriculture has carried out pilot projects for cooperative loan guarantee premium subsidies in Beijing, Hubei, Hunan, Chongqing and other provinces and cities since 2014, giving full play to the leverage effect of financial funds to leverage financial capital to support cooperatives.

In the process of carrying out the pilot project of guarantee premium subsidy, Chongqing City not only gave full play to the enthusiasm of policy-oriented agricultural financing guarantee institutions, lowered the financing threshold and risk of cooperatives, but also explored a new mode of financial capital investment of "changing compensation into investment" to attract more social capital to support agriculture.

In late August, Huizhong Watermelon Cooperative in Canggou Township, Wulong County, Chongqing City, was bustling. Several trucks parked next to the melon shed, and the melon farmers were busy carrying watermelon onto the car. Looking at the vibrant base, Ye Zhongyu, head of the cooperative, said: "Without Chongqing Agricultural Guarantee Company, there would be no present cooperative." At present, the cooperative has more than 1500 members, with a base area of about 10,000 mu, an annual output of 25,000 tons of watermelon and an output value of about 25 million yuan.

Ye Zhongyu was right. In 2014 and 2015, the watermelon harvest of the base failed due to disaster, relying on more than 1.6 million yuan of guaranteed loan to overcome difficulties; this year, the base was hit by rainstorm, and the base was rebuilt with 380,000 yuan of guaranteed loan. Huizhong is not the only cooperative that relies on the support of agricultural guarantee companies to solve financing difficulties.

In Chongqing, by the end of 2015, the cooperative loan guarantee premium subsidy pilot project had accumulatively implemented 4 million yuan of guarantee fee subsidy, mobilized 175.35 million yuan of bank credit funds to support the development of cooperatives, and enlarged the central financial fund by 43.84 times. Chongqing "Nongdan" company reduced the financing cost of each farmer cooperative by 27.7% on average last year, and the sales income of these cooperatives increased by 35.1% compared with that before obtaining loan guarantee, directly driving the income of thousands of farmers.

What kind of mechanism stimulates the enthusiasm of agricultural guarantee companies, what measures are there to pry social financial capital to support agriculture, and what means are there to prevent financial risks? Chongqing City Agricultural Committee related responsible person told reporters: "Multi-party linkage is to ensure the smooth implementation of the pilot work key."

Policy guarantee company undertaking: establish agricultural financial liaison station, innovate anti-guarantee measures

Chongqing's loan guarantee premium subsidy pilot work by government agencies, guarantee companies, financial institutions jointly implemented. The government provides premium subsidies, Chongqing Agricultural Guarantee Co., Ltd. provides guarantee for cooperative loans, cooperatives enjoy full premium subsidies, and banks provide centralized credit and loans for cooperatives.

Established in 2006, Chongqing City Agricultural Guarantee Co., Ltd.(hereinafter referred to as Chongqing Agricultural Guarantee Co., Ltd.) is a policy-oriented professional agriculture-related financing guarantee institution. With Chongqing City Agricultural Committee as the investor representative and responsible for management and policy business guidance, the Municipal Finance Bureau is responsible for fund use and financial supervision, mainly providing financing guarantee for agriculture-related business entities.

"The intervention of Chongqing Agricultural Bank effectively alleviates the loan difficulties caused by insufficient effective collateral for agricultural enterprises and farmers." According to Tang Wenzhi, chairman of the company, in 2015 alone, the company issued guarantee approval for more than 90 farmers 'cooperatives and provided guaranteed loans of 101.35 million yuan for 73 farmers' cooperatives. This year, the Ministry of Agriculture issued a subsidy fund of 2.9 million yuan. In the first half of this year alone, the company has raised more than 100 million yuan for cooperatives.

"In the past 10 years since its establishment, the company has formed a 'three-right' mortgage financing guarantee loan mode of 'government + guarantee + bank + farmer household (agricultural business entity)'." Tang Wenzhi told reporters. Last year, the company set up agricultural financial liaison stations in all districts and counties of the city to carry out the primary selection, recommendation and post-guarantee management of farmers 'cooperative guarantee projects, which greatly shortened the cooperative financing service process. At the same time, in view of the seasonal and timeliness characteristics of cooperative guarantee demand, the company broke through the restrictions of business departments and established working groups to carry out investigation on cooperative guarantee loan projects in batches.

The innovation of counter-guarantee measures is another magic weapon for Chongqing farmers to solve the loan difficulties of cooperatives. The company tailor-made anti-guarantee measures for cooperatives, greatly enhancing the financing capacity of cooperatives by means of mortgage of farmers 'land contracting and circulation management rights, mortgage of biological assets, cooperative joint insurance, mutual insurance of core members of cooperatives, mortgage of ground attachments and management houses, greenhouse facilities and equipment, etc.

In addition, Chongqing Agricultural Bank also explores the construction of financing project risk pool with the main district and county governments in the ratio of 1:1, providing risk guarantee for guaranteed loans of new agricultural operation entities such as cooperatives, and greatly reducing their physical mortgage counter-guarantee requirements.

Municipal financial fund support: increase special investment and add policy insurance

Established in 2007, Wanzhou District Agricultural Construction Poultry Professional Cooperative is the beneficiary of the guaranteed premium subsidy pilot. This is a state-level demonstration company that provides poultry breeding technology training, seedling, feed, veterinary drug procurement, distribution and sales "one-stop" service. "Although the scale of cooperatives is not small and the annual profit rate is guaranteed, the development of cooperatives is hindered by the difficulty of directly borrowing from banks." Ding Shuqing, director-general of the cooperative, said.

After learning the news of full subsidy of loan guarantee premium, Ding Shuqing applied for 2.4 million yuan guaranteed loan from Chongqing Agricultural Bank for capital turnover of livestock and poultry products sales. The loan allowed the cooperative business to grow rapidly, driving members to generate nearly 300 million yuan in revenue. "With increased income, the cohesion of members will be stronger, and the development of cooperatives will be more promising." Ding Shuqing said.

According to Chongqing City Finance Bureau related responsible person introduced, Municipal finance last year arranged 17 million yuan of special funds to support the development of farmers cooperatives, Of which 10 million yuan for demonstration cooperatives construction, 5 million yuan to support 32 rural new stock cooperatives development, 2 million yuan to support 5 districts and counties to carry out "Agricultural cooperative docking" pilot. It is worth mentioning that Chongqing combines the development of cooperatives with poverty alleviation. In terms of project selection, projects in poor districts and counties account for more than 60%, so as to drive local farmers out of poverty and become rich.

In addition, in order to reduce the accidental losses of agricultural production, Chongqing City Finance Bureau has strengthened its support for agricultural insurance, newly developed price index, land income new insurance products and other three policy agricultural insurance, the total number of insurance types reached 31. In 2015, the insured amount was 13.48 billion yuan, 1.052 million households (times) participated in the insurance, 116 million yuan of compensation had been settled, and 175,000 households benefited.

Multi-party joint innovation: set up venture capital fund to cultivate agricultural rural financial market

In order to innovate the financial support system of the main body of new agricultural operation and support the entrepreneurial development of farmers 'cooperatives, Chongqing City has explored a new financial equity investment mode of "changing compensation into investment". Led by Chongqing City Agricultural Committee, Chongqing City Agricultural Assets Management Co., Ltd.(hereinafter referred to as "Asset Company") initiated the establishment of the first phase of 200 million yuan of new agricultural economic entity venture capital fund.

According to the introduction of the person in charge of the asset company, venture capital funds are mainly used for farmland consolidation, farmland water conservancy and high-yield base establishment projects for major agricultural products, standardized breeding of livestock and poultry aquatic products, production and operation projects of improved varieties of breeding industry, modern agriculture and high-tech agricultural projects such as modern seed industry, manufacturing of agricultural machinery and equipment, facility agriculture and intensive processing of agricultural products, etc., to increase support for farmers 'cooperatives to expand reproduction, upgrade consumption and start their own businesses, and to promote water-saving agriculture. Circular agriculture and eco-friendly agricultural development. In 2015, 19 farmers 'cooperatives received fund investment totaling 65.1 million yuan.

Some experts pointed out that compared with the traditional direct supplement mode of financial funds, venture capital fund enlarges the effect of the existing direct supplement policy of financial funds, expands the number of audiences and support areas, is a new exploration of financial fund investment mode, an important channel for policy fulfillment, and a new measure for building rural financial system. In addition, the "investment + loan" mode determined by the asset company and the head office of the Three Gorges Bank (i.e.30% government-guided capital direct investment +70% three-year bank credit matching) has prized social financial capital into agriculture, which is conducive to the formation and cultivation of agricultural rural financial market.