Han Changfu: Serving agricultural modernization requires greater financial innovation

Chinanews.com, Beijing, September 25. Chinese Minister of Agriculture Han Changfu said at the Financial Services Agricultural Modernization Summit Forum held on the 22nd that insufficient rural financial supply is a long-term accumulation problem, and the modernization of agriculture requires greater financial innovation.

In recent years, China's agricultural and rural reform and development have achieved rapid development. The service capacity and level of China's rural finance have been significantly improved. In 10 years, China's insurance premiums have increased from 5.18 billion yuan to 41.7 billion yuan, becoming the first agricultural insurance in Asia and the second in the world. Market, and established an agricultural credit guarantee system covering all provinces in the country.

However, Han Changfu pointed out that finance is still the biggest shortcoming in China's agricultural support and protection policy system, and problems such as difficult loans, expensive loans, and insufficient insurance are still outstanding issues reported by farmers. According to statistics, in 2016 agriculture-related loans accounted for 28.2 trillion yuan, accounting for 26.5% of all loans, but only 6.6% of farmers’ loans, and only 3.4% of loans for agriculture, forestry, animal husbandry and fishery; this is seriously out of proportion to the status and role of agriculture. , Which is seriously out of proportion to the development needs of the agricultural industry.

At present, China's agriculture is entering a critical period of transformation and upgrading and the development of modern agriculture. Han Changfu said that modern agriculture is capital-intensive and has a high level of technical equipment. It is difficult to achieve great development by relying solely on agricultural self-accumulation and farmers' own investment. The promotion of agricultural modernization must rely on external capital, especially the supporting role of modern finance.

Han Changfu pointed out that financial services should be strengthened for agricultural modernization and financial innovation should be accelerated. In terms of product innovation, agricultural credit must expand the scope of agricultural collateral and develop; two-right mortgage, large-scale agricultural machinery mortgage, warehouse receipt and insurance policy pledge; agricultural insurance must address the situation of increasing production costs and the intertwining of natural and market risks. Design good products that can be secured and compensated; agricultural investment and financing should address the problems of high demand for agricultural inputs and low social capital enthusiasm, and establish an industrial guidance fund; in terms of mechanism innovation, some subsidy policies should be combined with financial tools to mobilize The enthusiasm of financial institutions to support agriculture.

In addition, Han Changfu also pointed out that it is necessary to learn from the successful experience of the American farm credit system and the Japanese Agricultural Association's financial services to study and explore the establishment of a national financial service system focusing on agriculture and rural areas.