Ministry of Finance Supports Agriculture's Advantageous and Characteristic Industries to Promote the Development of Agricultural Industrialization
Notice on Issuing the "Guiding Opinions on Supporting Agriculture's Advantageous and Characteristic Industries through Comprehensive Agricultural Development to Promote the Development of Agricultural Industrialization"
Cai Fa [2015] No. 42
To the finance departments (bureaus) and comprehensive agricultural development offices (bureaus) of all provinces, autonomous regions, municipalities directly under the Central Government, and cities under separate state planning; the Finance Bureau and Comprehensive Agricultural Development Office of the Xinjiang Production and Construction Corps; and the comprehensive agricultural development agencies of the Ministry of Agriculture (the Heilongjiang State Farm Bureau and the Guangdong State Farm Bureau):
The "Guiding Opinions on Supporting Agriculture's Advantageous and Characteristic Industries through Comprehensive Agricultural Development to Promote the Development of Agricultural Industrialization" is hereby issued to you for implementation. Should any problems arise during implementation, please provide timely feedback to the Ministry of Finance (National Comprehensive Agricultural Development Office).
Ministry of Finance
November 4, 2015
Attachment:
Guiding Opinions on Supporting Agriculture's Advantageous and Characteristic Industries
through Comprehensive Agricultural Development to Promote the Development of Agricultural Industrialization
Supporting the development of agricultural industrialization is an important means by which comprehensive agricultural development extends and improves the agricultural industry chain and advances the structural adjustment of the agricultural and rural economy. Under the current new situation of rising agricultural production costs and intensifying rigid constraints on resources and the environment, there is an urgent need to strengthen the role of comprehensive agricultural development in supporting industrialization, to open new paths and tap new potential in support methods, support targets, support directions and support links, to accelerate the transformation of the agricultural development model, and to achieve improved agricultural quality and efficiency and sustained increases in farmers' incomes. The following opinions are hereby put forward on supporting agriculture's advantageous and characteristic industries through comprehensive agricultural development to promote the development of agricultural industrialization:
I. Guiding Ideology
Thoroughly implement the spirit of the No. 1 Central Document of 2015 and the National Joint Conference on Comprehensive Agricultural Development, take “optimizing layout, highlighting advantages, providing targeted support, and improving efficiency” as the main line, take promoting the integrated development of the primary, secondary and tertiary industries in rural areas and the sustained increase of farmers' incomes as the goal, and take building clusters of agriculture's advantageous and characteristic industries as the focal point. By optimizing the scope of industries, improving support methods, and optimizing management mechanisms, cultivate and strengthen new types of agricultural business entities, attract diversified capital to expand investment, advance appropriately scaled agricultural operations, and explore effective ways to further improve support for industrialization development through comprehensive agricultural development. The focus is on achieving the “three transformations.” First, the support orientation shifts from projects to industries. Through concentrated investment and joint support for regional advantageous and characteristic industries, achieve cost savings and consumption reduction, and improved quality and efficiency. Second, the implementing entities shift from a single type to diversified types. Increase support for new types of agricultural business entities engaged in appropriately scaled operations, and implement a mechanism whereby multiple entities in the same industry jointly apply and develop in coordination. Third, project funds shift from “leading” to “guiding.” Using projects as a platform, give play to the guiding and leveraging role of fiscal funds, attract investment from financial capital, social capital and other funds, expand the overall pool of funds, and jointly support and develop advantageous and characteristic industries.
II. Basic Principles
(1) Identify the key points and invest in a concentrated manner. Concentrate the limited fiscal funds of comprehensive agricultural development into supporting regional agriculture's advantageous and characteristic industries, solve the problems of projects being small, scattered and of low efficiency, fully give play to the effects of industrial agglomeration in saving costs, promoting innovation and stimulating economic growth, and improve the efficiency of the use of fiscal funds for comprehensive agricultural development.
(2) Base efforts on endowments and build advantages. Fully give play to the characteristics of regional resource endowments, focus on developing characteristic industries with prominent comparative advantages, promote the optimal allocation of production factors in space and across industries, and improve the degree of specialization and output efficiency of the agricultural industry. Through the agglomeration and upgrading of advantageous and characteristic industries, transform comparative advantages into industrial advantages, product advantages and competitive advantages.
(3) Face the market and enhance value. According to market demand, optimize the industrial and varietal structure, highlight quality characteristics, functional characteristics, seasonal characteristics, etc., and meet the diverse, high-quality and dynamic needs of the market. According to market changes and development trends, establish a dynamic management mechanism for the advantageous and characteristic industries to be supported, and improve the precision of industrial support.
(4) Extend the chain and develop intensively. Around regional advantageous and characteristic industries, reasonably determine the support entities and content of industrialization operation projects, focus on key links in industrial development, extend the characteristic industry chain and increase the added value of products. Connect the construction of advantageous and characteristic industry clusters with the construction of high-standard farmland, maximize the integrated effects and demonstration effects of comprehensive agricultural development, and improve the comprehensive competitiveness of advantageous and characteristic industries.
III. Objectives and Tasks
Starting from 2016, the industrialization operation projects of comprehensive agricultural development will focus on supporting regional agriculture's advantageous and characteristic industries. For the advantageous and characteristic industries included in the priority support scope of comprehensive agricultural development, through key support and continuous support, strive to use 3 years to preliminarily form 1-2 advantageous and characteristic industries in each comprehensive agricultural development county, form about 10 in each province as a unit, and preliminarily form one hundred regional agricultural advantageous and characteristic industry clusters across the country with relatively large resource comparative advantages, long extended industry chains, integrated development of the primary, secondary and tertiary industries, and strong demonstration and driving effects, leverage investment from financial capital, social capital and other funds, promote the development and growth of a number of new types of agricultural business entities, significantly improve the benefits and level of comprehensive agricultural development, and make comprehensive agricultural development an important force in promoting the development of agriculture's advantageous and characteristic industries, transforming the agricultural development model, advancing the construction of agricultural modernization, and promoting the sustained increase of farmers' incomes.
IV. Support Scope
The industries supported by industrialization operation projects shall mainly be those included in the "National Plan for Supporting Agriculture's Advantageous and Characteristic Industries through Comprehensive Agricultural Development" (hereinafter referred to as the "Plan"). Provincial agricultural development agencies are encouraged to determine about 10 key agriculture advantageous and characteristic industries within their regions. County-level agricultural development agencies shall, in principle, select the best options within the scope of their region's agriculture advantageous and characteristic industries. For the agriculture advantageous and characteristic industries within their region, identify the key links and weak links in the industry chain for key support and continuous support, build a complete industry chain, and make the regional agriculture advantageous and characteristic industries bigger and stronger.
V. Support Content
The support content mainly revolves around improving the agriculture advantageous and characteristic industry chain, specifically including: in planting, seedling breeding, standardized planting bases, agricultural products storage and preservation, waste processing and utilization, etc.; in breeding, breeding of breeding livestock and poultry (including aquatic products), standardized breeding bases, livestock and poultry (including aquatic products) trading venues, forage planting, feed processing, harmless treatment of manure, organic fertilizer processing, etc.; in processing and circulation, processing bases, raw material warehousing, finished product storage and preservation, cold chain logistics, production area wholesale markets, etc. At the same time, encourage the development of “Internet + agriculture” and actively support the construction of e-commerce platforms for advantageous and characteristic agricultural products.
VI. Support Methods
Fully give play to the guiding and leveraging role of fiscal funds on financial capital and social capital, adjust and improve the methods of fiscal funds supporting agriculture's advantageous and characteristic industries, and gradually form a diversified support system dominated by loan interest subsidies, supplemented by fiscal subsidies, and coexisting with various forms such as fiscal equity investment funds. Loan interest subsidy projects shall give priority to supporting agricultural industrialization leading enterprises and farmers' cooperatives with relatively strong strength, relatively large scale and prominent demonstration and driving effects. Fiscal subsidy projects shall give priority to supporting farmers' cooperatives, family farms, specialized large households and agricultural socialized service organizations, etc. Encourage and guide areas with the conditions to adopt support methods such as fiscal equity investment funds and loan project guarantee funds, give play to the role of fiscal funds in “achieving much with little,” and leverage more financial capital and social capital to support the development of advantageous and characteristic industries. At the same time, encourage local areas to actively explore other support methods conducive to expanding social capital investment and strengthening advantageous and characteristic industry clusters.
VII. Work Requirements
(1) Strengthen organizational implementation. Provincial agricultural development agencies may, with reference to the application guidelines for industrialization operation projects of comprehensive agricultural development issued by the National Comprehensive Agricultural Development Office and the project implementation situation of the previous year, formulate annual application guidelines suited to provincial conditions and clarify specific support policies. They shall issue them to county-level agricultural development agencies within one month from the date the National Comprehensive Agricultural Development Office issues the application guidelines for industrialization operation projects of comprehensive agricultural development.
(2) Focus on fund integration. In accordance with the principles of “planning first, strengthening linkage, overall arrangement, highlighting key points, and seeking practical results,” coordinate relevant agriculture-supporting and agriculture-related funds, focus on integrating agricultural development funds with financial capital and social capital, strengthen the organic linkage between projects, and form a powerful synergy for supporting the development of advantageous and characteristic industries.
(3) Encourage piloting first. Encourage local areas to actively explore and innovate support methods for industrialization operation projects, leverage financial capital and social capital, increase investment, improve the efficiency of the use of agricultural development funds, and achieve effective coordination and virtuous interaction between agricultural development funds and financial capital and social capital. Encourage areas with the conditions to carry out piloting first, to be implemented after reporting to and obtaining the consent of the National Comprehensive Agricultural Development Office.
(4) Summarize and improve in a timely manner. All localities shall further strengthen investigation and research, promptly grasp and track the development of advantageous and characteristic industries and project operation, constantly sum up experience, and, in response to existing problems, timely improve relevant policies and measures to ensure that comprehensive agricultural development support for advantageous and characteristic industries achieves the expected results. The National Comprehensive Agricultural Development Office will include the progress of support for agriculture's advantageous and characteristic industries in each province in the comprehensive assessment scope for the management work of provincial agricultural development agencies. For provinces with high work enthusiasm and obvious results in the development of advantageous and characteristic industries, preference will be given in the allocation of funds in the next planning cycle.