Breeding science and technology enterprises need more loan support
Insufficient funds and difficulty in obtaining loans have restricted and affected the development of crop breeding science and technology enterprises. Liu Fengzhi, a member of the National Committee of the Chinese People's Political Consultative Conference and director of the Fruit Research Institute of the Chinese Academy of Agricultural Sciences, said: “At present, the financial institutions that provide loans to crop breeding science and technology enterprises are basically all commercial banks, mainly using fixed asset mortgages, with low loan amounts, high interest rates and complicated approval procedures, which has seriously restricted and affected the development of crop breeding science and technology enterprises with innovative capacity.”
He suggested that the Agricultural Development Bank of China provide loan support in the following three areas: first, loans for new variety research and development, with a cycle of three years being preferable; second, seed production loans, as seed enterprises with propagation bases need short-term working capital loan support in production; third, propagation base loans, providing loan support to leading seed enterprises that establish breeding and propagation bases when they pay land contracting fees in a lump sum. In addition, guarantee methods should be increased. In addition to real estate mortgages, it is suggested to add new variety rights independently developed by seed enterprises with independent intellectual property rights as intangible asset mortgages, as well as stored seeds as movable property mortgages; for leading enterprises with good credit, add credit guarantee methods, and give preferential interest rates on loans to seed enterprises, including interest subsidies. The seasonal characteristics of seed enterprise operations are significant, and it is suggested that the efficiency of loan approval procedures should be improved so that the issuance of loans matches the timing of demand.
⟦NL> It is necessary to effectively improve the policy for seed production, purchase and storage. Establish a seed production risk diversification mechanism supported by the government, participated in by seed enterprises and operated commercially, and carry out insurance pilot projects for eligible rice seed production. Increase the promotion and use of efficient and safe seed production technology and advanced and applicable seed production machinery, and include seed production machinery in the scope of subsidies for the purchase of agricultural machinery and tools. Improve the seed purchase and storage policy, encourage and guide relevant financial institutions, especially policy banks, to increase credit support for seed purchase and storage, and the central and provincial governments should provide subsidies for seed reserves.