Agricultural Development Bank of China to arrange 50 billion yuan in credit over the next 3 years to support the development of the pig industry
The number of pigs sent to market is at a historic low, while pig prices are at a historic peak for the same period. The rampage of the African swine fever virus has led people to exclaim “they cannot afford pork”. In order to encourage pig breeding and production, the state has introduced many policies to provide incentives. Recently, the Agricultural Development Bank of China has vigorously promoted the development of the pig industry, arranging 50 billion yuan in pig breeding credit over the next 3 years.
In order to implement the spirit of documents such as the State Council's “Opinions on Stabilizing Pig Production and Promoting Transformation and Upgrading” and the China Banking and Insurance Regulatory Commission and the Ministry of Agriculture and Rural Affairs' “Notice on Supporting the Work Related to Stabilizing Pig Production and Ensuring Market Supply”, the Agricultural Development Bank of China recently issued the “Opinions on Increasing Credit Support to Promote the Development of the Pig Industry”.
The “Opinions” make clear that the Agricultural Development Bank of China will adopt multiple policy measures to support the pig industry. First, strengthen the allocation of credit resources. In the next 3 years, the bank plans to arrange a credit scale and funds of 50 billion yuan, concentrated on supporting the development of the entire pig industry chain and the construction of the reserve regulation system. Implement a preferential interest rate policy of “benchmarking peers and appropriate concessions”, fully use PSL funds and special poverty alleviation relending funds for “three regions and three prefectures”, and further reduce the cost of enterprise fund use. Second, increase medium- and long-term credit support for large leading enterprises to meet their funding needs for production base construction. Actively promote models such as “government-led, state-owned enterprise contracted construction, large-scale breeding enterprise leased operation” to effectively solve the insufficient investment capacity of enterprise base construction and promote the healthy and sustainable development of the pig industry. Third, innovate support models for small, medium and micro enterprises. Use small and micro enterprise loan policies, innovatively apply supply chain and blockchain technologies, provide online comprehensive financial services and online loan processing for pig production and upstream and downstream small and medium-sized enterprises, farms and breeders, and reduce financing costs. Fourth, improve financial services, firmly establish a customer-centered concept, tailor financing plans for enterprises, open green loan processing channels, and improve loan processing efficiency and financial service levels.
A relevant person in charge of the Agricultural Development Bank of China said that the bank will effectively increase credit support for the development of the pig industry. In future credit delivery work, first, strengthen industry analysis and research, identify entry points for business development, precisely select target customers, and strictly control access. Second, effectively maintain existing customers, adhere to “one enterprise, one policy, classified guidance”; for high-quality backbone enterprises, appropriately increase credit authorization according to the enterprise's production and operation needs and risk tolerance; for enterprises operating normally, actively meet their reasonable loan renewal needs; for enterprises that meet credit conditions but temporarily encounter operational difficulties, stabilize support and help them get over the hump. Third, increase model innovation and actively promote the application of “government-bank-guarantee”, “government-bank-insurance”, “company + base + farmer”, supply chain finance, and order financing. Promote the establishment of diversified risk compensation mechanisms. Fourth, actively advance the pilot work on collateral, earnestly implement the relevant notice requirements of the China Banking and Insurance Regulatory Commission, and branches in pilot areas may appropriately expand the scope of collateral such as land management rights, breeding pens and sheds, and large breeding machinery; for areas with conditions for the registration and transfer of live pig collateral, the pilot of live pig collateral loans may be steadily carried out according to the principles of controllable risks and proper management.