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Upgrading agricultural cooperatives requires joint efforts from both inside and outside

Industry News By Sophie Bennett 0 views
The state introduced this policy very timely; agricultural cooperatives really need to be regulated. At present there are many kinds of cooperatives, but those with high operating quality are exceedingly rare. On the 8th, after hearing the reporter describe the "Opinions on Guiding and Promoting the Standardized Development of Farmers' Cooperatives" recently jointly issued by the Ministry of Agriculture and nine other ministries and commissions,

 

“The state introduced this policy very timely; agricultural cooperatives really need to be regulated. At present there are many kinds of cooperatives, but those with high operating quality are exceedingly rare.” On the 8th, after hearing the reporter describe the "Opinions on Guiding and Promoting the Standardized Development of Farmers' Cooperatives" recently jointly issued by the Ministry of Agriculture and nine other ministries and commissions, Peng Weiqiang, head of the Fengshou Agricultural Machinery Professional Cooperative in Haimen City Development Zone, said that relevant policies are not being implemented in practice, leaving cooperatives facing no small number of difficulties.

Beneficial-to-farmers policies are hard to implement

Which policies are not being implemented in practice? The cooperative led by Peng Weiqiang is a national demonstration cooperative. According to policy, once an agricultural machinery warehouse reaches 300 sq m, it can receive a financial subsidy of 100,000 yuan, but the cooperative cannot obtain the land quota to build the warehouse, so this policy is as good as nonexistent.

Not long ago, when Nantong investigated the city's farmers' professional cooperative organizations, it found that cooperatives generally face financing difficulties. Although the report of the 18th National Congress and the cooperative development opinions issued by relevant departments both clearly state that "farmers' cooperatives shall be included in the credit assessment scope of banking financial institutions" and "local governments and private investors shall be encouraged to establish financing guarantee companies to provide loan guarantee services for farmers' cooperatives," most commercial banks have not yet engaged in loan business with farmers' professional cooperatives as the borrowing entity, and most cooperative loans can only be applied for as small loans of up to 50,000 yuan in the name of natural persons.

Although the "Law on Farmers' Professional Cooperatives" and the Ministry of Finance, the State Administration of Taxation and others have issued policies on tax preferences for farmers' professional cooperatives, there is no "farmers' professional cooperative" category in the tax management system, and only the financial management system for industrial enterprises can be used, causing some cooperatives to be forced to establish "two sets" of accounts.

Equity issues are "hard to sort out"

But the "stick" cannot be aimed only at policy; the problems existing in cooperatives themselves also cannot be overlooked. Bao Zongshun, a researcher and director of the Rural Development Institute of the Provincial Academy of Social Sciences, said that the most prominent problem in rural professional cooperatives at present is that equity is too concentrated, and it is basically still one large household leading a group of small households, with the relationship between large and small households still essentially one of buying and selling. Only when cooperative equity is average can shared interests be realized. Now, cooperative equity is increasingly concentrated in the hands of a few people, and the leader is more like a broker with relatively strong buying and selling capacity, which departs from the original intention of establishing cooperatives.

The head of a vegetable cooperative in the province admitted frankly that he held more than 80% of the cooperative's shares. "I am responsible for the cooperative's operations, and the risks are mainly borne by me as well." He asked in reply, vegetable prices fluctuate greatly, but he has to purchase at a protective price; if there is a loss, are members willing to bear the loss? A tea cooperative in a certain city in southern Jiangsu has more than 1,000 members. One member said that the purchase price for fresh leaves is indeed a bit higher than when individuals sold on their own before, but he does not understand the cooperative's financial situation and does not know how much money the cooperative has earned. The cooperative's year-end dividend is symbolic, with each household receiving at most over 1,000 yuan and at least only a few hundred yuan. "The chairman earns much more; just look at the luxurious manor he built and you will know."

Standardization still awaits its time

A few years ago, some places rushed to develop a batch of farmers' professional cooperatives, and there was a phenomenon of farmers being "cooperated." A grain-growing farmer in Liyang City was "split up" into a member of 4 cooperatives. Several large growing and distribution households all came to his door, promising some benefits, so he joined. As for why large households asked farmers to "make up the numbers" as members, it is because management departments have requirements for the number of members. After a cooperative is established, it can obtain project funds and support funds, ranging from tens of thousands of yuan to more than 100,000 yuan, which an individual farmer cannot obtain.

The opinions issued by the nine ministries and commissions this time proposed that in about 5 years, more than 70% of cooperatives should have complete member accounts, implement cooperative affairs openness, and distribute surpluses according to law. Wu Hongjing, deputy director of the Cooperative Guidance Division of the Provincial Agricultural Commission, said that the opinions also clearly state that land used for cooperative production facilities and ancillary facilities shall be managed as agricultural land, and water and electricity used for planting and breeding shall be charged at agricultural prices. This will play a very large role in promoting the development of cooperatives.

 

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