China's new types of agricultural business entities grow rapidly as the proportion of contracted farmland transferred rises
China Securities Journal Online (staff reporter Jin Jiajie) Under the support of a number of strengthened policies, China's new types of agricultural business entities have developed rapidly, and the area of contracted rural farmland transferred has continued to rise. According to the latest statistics from the Ministry of Agriculture, as of June this year, the area of contracted farmland transferred nationwide accounted for 32% of the total farmland area, and the contracted land area was more than 13 times that of 2008. At present, China has 1.4 million farmers' cooperatives and more than 120,000 agricultural distribution enterprises.
Guo Hongyu, deputy director of the Department of Finance of the Ministry of Agriculture, pointed out on the 8th at the rural financial services sub-forum of the 2015 Agricultural Informatization Summit Forum “Internet Plus” that “China's agricultural informatization is developing very rapidly, but the prices of our (agricultural products) are far higher than prices on the international market, and the financial pressure on government purchases is also very great. The fundamental way out of the problem still depends on developing new types of entities, and developing new types of entities cannot do without financial support.”
In the Comprehensive Implementation Plan for Deepening Rural Reform issued by the General Office of the CPC Central Committee and the General Office of the State Council in November, the primary goal and task proposed that by 2020, the protection systems for various types of ownership economies in rural areas, especially the ownership of rural collective assets, farmers' land contract management rights and farmers' property rights, will be more complete, and the new agricultural management system and the rural financial system suited to the characteristics of agriculture and rural areas will be more sound.
Guo Hongyu pointed out that the continuous development of new types of business entities has made the scale of modern agricultural financing demand larger and the financing demand cycle longer. Taking Wuhan as an example, the average area of its farms is 260 mu, of which 230 mu was transferred from other farmers, and the transfer fee per mu is nearly 500 yuan, with the total cost reaching more than 100,000 yuan, which puts considerable pressure on ordinary new types of agricultural business entities.
⟦NL> Surveys show that 52% of family farms have a demand for funds with a term of more than one year. But the actual loan term is now relatively short, and many farmers need to repay old loans and take out new ones. In this process, bridge funds are introduced, which invisibly raises the cost of the enterprise or family farm and also brings risks in financing. Therefore, modern agriculture urgently needs financial support for development.