Agricultural Machinery subsidy as guarantee to solve the problem of Farmers' purchase of machines

The wheat harvest season is the peak sales season for wheat harvesters. Recently, in the sales hall of Hengtong Agricultural Machinery Co., Ltd., Guangrao County, Shandong Province, Cai Chuanren, the business manager, enthusiastically introduced the prices and performance of various harvesters to farmers who came to buy machines. "with the 'agricultural machinery loan', sales will increase a lot this year." He told the reporter with a smile.

At this time last year, Cai Chuanren frowned. In 2014, in order to simplify the handling procedures and put an end to fraudulent compensation, the state adjusted the subsidy policy for the purchase of agricultural machinery from "purchasing machines on the balance" to "purchasing machines at full price". Farmers need to pay in full for the purchase of machinery before applying for subsidies, so the financial pressure on the purchase of agricultural machinery suddenly increases, and some do not buy it at all, or require advance subsidies for the purchase of machines. "our dealers are not only facing the pressure of declining sales, but also under the pressure of tight liquidity." He said that the "agricultural machinery loan" launched by Qi Shang Bank has really solved the problem.

"the purchase of a machine at full price is nothing more than a subsidy to be paid a few months later. We can first give farmers the same amount of loan, and then repay it after the subsidy comes down." Zou Qian, general manager of the small Enterprise Financial Service Center of Qi Shang Bank, talked about the product design idea of "Qi Power-'departure' Credit Agricultural Machinery loan". Farmers only need to pay 70% of the purchase money to dealers, and the remaining 30%, that is, the amount of subsidy for the purchase of agricultural machinery, which is directly granted by Qishang Bank to dealers in the form of farmers' loans, the financial pressure on farmers and dealers has been alleviated.

The purchase of agricultural machinery and tools is very seasonal, concentrated in spring ploughing, summer harvest and autumn harvest, farmers use "urgent money". So, how can "agricultural machinery loan" be issued to farmers in just one week? "the guarantee of 'agricultural machinery loan' is actually a subsidy for the purchase of agricultural machinery, and there is a national policy as a credit guarantee, and the lending risk is basically zero." Zou Qian explained to the reporter that the agricultural machinery dealers recommended to the Qi Commercial Bank that they should hold the "application for subsidy for the purchase of agricultural machinery" and bear joint and several liability. Farmers only need to provide basic certificates such as identity cards, marriage certificates, hukou books, machine purchase contracts, deposit receipts, and pass credit verification. After the Qishang Bank opens a special account to call 70% of the machine purchase money to dealers, the bank can issue loans.

"this loan is very simple, no mortgage, no guarantee, and the bank still provides door-to-door service, so I don't have to run back and forth." Li Bin, an agricultural machinery professional in Guangrao town of the county, said that a week ago, he borrowed 32000 yuan through a "agricultural machinery loan" and successfully bought a 110000 yuan wheat harvester.

"We grant credit to farmers for one year, which is consistent with the longest time interval between the purchase of a machine and the issuance of subsidies, ensuring that farmers will repay the money after receiving the subsidy to avoid overdue. Farmers can also repay the loan in advance at any time, and we calculate interest on a daily basis. " 'in fact, because this loan product can help increase sales, through our negotiations, most dealers are willing to bear the interest, 'said Li Jiahan, a salesman at Qishang Bank.

Zou Qian said frankly that although the single business amount of "agricultural machinery loan" is not large and the bank income is not high, the agricultural machinery market in Shandong Province is very large, and the total income will not be different. The most important thing is that this loan product can generally meet the credit needs of large growers, cooperatives, family farms and other new agricultural operators, which can be said to be an attempt of supply-side reform of rural small and micro finance. Up to now, "Qi Power-'departure' Credit Agricultural Machinery loan" has provided a total of 325.2 million yuan of credit support to 4089 farmers and has been rated as the country's "Top 20 Financial products for Agriculture, Countryside and Farmers".

"although we try to contact agricultural machinery dealers to recommend farmers to carry out batch inspection and bulk loans, local branches can also handle them, but there are few people, so we often need the assistance of salesmen from Zibo head office to contact dealers in other cities and cities. The overall promotion efficiency is still not high." Zou Qian said that if it can get the support of local agricultural machinery bureaus and make recommendations to local agricultural machinery dealers, this product can benefit more farmers.

Short comment

To innovate financial products from the supply side, the practice of Qishang Bank aims at the "bull's-eye" of multi-demand: for government departments, this product enables the policy of benefiting farmers to be implemented to every farmer who buys machines, so that they can directly enjoy the benefits brought by subsidies; for farmers, they no longer buy agricultural machinery in full, reducing the pressure of purchasing machines and increasing their entrepreneurial income-generating ability. For agricultural machinery dealers, it saves as much as 10 million yuan in advance costs in one year.

The "agricultural machinery loan" seems to be a micro-innovation aimed at the adjustment of the national agricultural machinery purchase subsidy policy, but it has really solved the problem of "the last kilometer" of the favorable agricultural policy. At the same time, this innovation has also opened up a "blue ocean" for small and micro financial services to benefit agriculture and support agriculture, which is worth using for reference and promotion.

Li Chun, a reporter from our newspaper