After confirmation of rights, farms can apply for mortgage loans
"Cowsheds can be mortgaged for loans too!" When Xu Ying, a large-scale dairy cow farmer, received a bank loan of 5 million yuan, her surprise was written all over her face. Xu Ying is the chairman of Hedasifang Dairy Cow Breeding Farmers' Professional Cooperative in Qiqihar City, Heilongjiang Province.
In the past two years, Heilongjiang Province has innovated its pro-farmer financial policies for the livestock industry, broadened financing channels for livestock breeding, carried out confirmation and registration of rights for livestock farms, and launched a pilot program in Qiqihar City. Recently, after confirmation of rights for two newly built farms in Qiqihar City, the first loan of 5 million yuan was issued by the Qiqihar Labor Sub-branch of Longjiang Bank. Xu Ying became the first "crab eater" to take out a loan based on her own farm.
The difficulty of obtaining breeding loans and financing has long constrained the development of the livestock industry. At the beginning of this year, Xu Ying, who was worrying about funds for building her pasture, heard that once a dairy cowshed has been confirmed and certified by the animal husbandry department, it could be used as collateral to obtain a bank loan - this was truly unprecedented good news. Xu Ying hurried to the Qiqihar Municipal Animal Husbandry and Veterinary Bureau to apply for confirmation of rights for her newly built cowshed of more than 2,500 sq m. What Xu Ying did not expect was that the entire process, from the animal husbandry department accepting the application, reviewing and inspecting it, and issuing the "Farm Ownership Certificate," to the bank issuing the loan, went especially smoothly. The loan problem that had once seemed almost unsolvable was resolved so quickly. After receiving the loan, Xu Ying said that pasture construction is now at a critical stage, the cowshed has just been completed, and some facilities and equipment still need to be added; this 5 million yuan loan can buy a set of the world's most advanced rotary milking machine.
The farmers are happy, and the bank is happy too. Liang Qibin, deputy president of the Qiqihar Branch of Longjiang Bank, said: "The difficulty of livestock loans has always troubled us. According to the operating rules of banks, borrowers are required to provide sufficient collateral for loans. But from the characteristics of the livestock industry, its assets are mainly concentrated in live livestock and poultry, and these assets are difficult to use as collateral. Although a farm is a kind of fixed asset, because ownership has not been determined and there is no transfer platform, these 'valuable assets' cannot become 'effective assets' and cannot be used as collateral. Now that the animal husbandry department, as the government side, confirms rights for farms, it gives farms legal status and also removes the bank's worries. This time we cooperated with the animal husbandry department and achieved a win-win situation for the government, the bank and the breeders. We are very optimistic about the development potential of the livestock industry and will soon continue to issue 60 million yuan in breeding loans."
Ni Chunmei, president of the Qiqihar Labor Sub-branch of Longjiang Bank, said that this time the bank and the animal husbandry department jointly created the financial product "mortgage loan with confirmation and registration of farm rights," and this product can be replicated in batches. According to statistics, the estimated assets of farms across the province are about 69.5 billion yuan, of which fixed assets are about 55 billion yuan. After confirmation of rights, it may solve the difficulty of obtaining loans that constrains the development of the livestock industry.
To solve the difficulty of livestock loans, the animal husbandry department has been "charging left and right." Wang Desheng, deputy director of the provincial Animal Husbandry and Veterinary Bureau, said that the mortgage loan with confirmation and registration of farm rights is a financial innovation, which is to clarify that the animal husbandry and veterinary department has the power to register and issue certificates for farms that meet the conditions for confirmation and registration applications, have lawful sources of ownership, have clear boundaries without disputes, and have accurate areas. This property rights certificate can be used as proof of property mortgage guarantee to apply to banks for loans. In this way, it not only clarifies the property rights of farms across the province, protects the property rights and interests of breeding producers, but also revitalizes the huge stock of assets of 55 billion yuan in the province's livestock industry. At the same time, it also broadens the channels for property income growth for breeding enterprises and breeding producers, and creates convenient conditions for them to participate in shareholding, leasing, transfers and so on in the next step.
As the "pathbreaker," Qiqihar City's exploration is extremely valuable. Qi Xiaotong, deputy director of the Qiqihar Municipal Animal Husbandry and Veterinary Bureau, believes that the implementation of the mortgage loan with confirmation and registration of farm rights means that the "bottleneck" in livestock financing has been cleared. This will attract more financial institutions to provide effective financial support for the livestock industry, gradually turning the livestock industry from a "disadvantaged" industry in market economic activities into an "advantaged" industry. In the future, the animal husbandry department will proactively help financial institutions control risks well, enable financial institutions to increase their profit margins, "the livestock industry does the work and the bank makes the money," and thereby encourage banks to increase the scale of livestock loans.