Agriculture's advantageous and specialty industries will receive key support, ushering in new opportunities for development

The Ministry of Finance recently issued the "Guiding Opinions on Supporting Agriculture's Advantageous and Specialty Industries through Comprehensive Agricultural Development to Promote the Development of Agricultural Industrialization," which explicitly proposes "starting from 2016, comprehensive agricultural development industrialization operation projects will focus on supporting regional agriculture's advantageous and specialty industries." Behind this policy, what agricultural business opportunities are there? As cooperatives, agricultural enterprises and family farms, what benefits will they receive?

For a long time, China's agricultural development has been relatively scattered, resulting in low operating efficiency, poor risk resistance, low profits and relatively backward development. Therefore, since the Third Plenary Session of the 18th Central Committee, China's agriculture has begun comprehensive reform, explicitly proposing to advance agricultural industrialization, scale and sustainable development. Many policies promulgated from 2014 to 2015 took this as their core to promote the rapid transformation of agriculture. This policy also very explicitly proposes: strive to use 3 years to preliminarily form 1 to 2 advantageous and specialty industries in each comprehensive agricultural development county, form about 10 in each province as a unit, and preliminarily form across the country a hundred regional agricultural advantageous and specialty industry clusters with relatively large resource advantages, long industrial chain extensions, integrated development of the primary, secondary and tertiary industries, and strong demonstration and driving effects. In other words, in the future, regional industrialized and scaled specialty agriculture will still be the main direction of development.

Why was this policy issued? How will agriculture develop in the future?

What does the support content include? What is the focus?

Support content:

This policy mainly revolves around improving agriculture's advantageous and specialty industry chain, including: in planting, seedling breeding, standardized planting bases, agricultural product storage and preservation, waste processing and utilization, etc.; in breeding, breeding of breeding livestock and poultry (including aquaculture), standardized breeding bases, livestock and poultry (including aquaculture) trading venues, forage grass 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, it encourages the development of "Internet + agriculture" and actively supports the construction of e-commerce platforms for advantageous and specialty agricultural products.

Support focus:

1. Standardized planting (breeding): give play to the leverage role of the market.

2. Ecological projects: under the traditional agricultural production mode, the carrying capacity of resources and the environment is tight, and the quality of land resources declines, leading to lower agricultural efficiency. Therefore, the transformation of agricultural production methods must shift from the past resource-wasting type to the sustainable development mode of ecological agriculture and green agriculture. Therefore, green and environmentally friendly ecological agriculture ushers in major opportunities.

3. Agricultural e-commerce: the Internet entering agriculture gave birth to agricultural e-commerce. Although e-commerce momentum is strong, in reality the overall scale of agricultural e-commerce is still relatively small. A large number of rural markets have not yet connected with e-commerce, and there is still huge space for the expansion of e-commerce.

How to support? Whom to support?

Support method 1: loan interest subsidies. Give priority to supporting leading enterprises in agricultural industrialization and farmers' cooperatives with relatively strong strength, relatively large scale and significant demonstration and driving effects.

Support method 2: financial subsidies. Give priority to supporting farmers' cooperatives, family farms, specialized large households and agricultural socialized service organizations, etc.

Support method 3: fiscal equity investment funds. Encourage and guide areas with the conditions to adopt support methods such as fiscal equity investment funds and loan project guarantee funds.