Rural cooperative finance must be service-oriented and consistently deliver good service

Because Haotang Village was too complex, we started working on finance and new rural construction, and turned it into a famous tourism village. What I am talking about today is related to Haotang Village and also related to everyone. I published a book called "Speaking Truth to the Premier Again", and there are many words in the book. Today I will repeat here the words related to finance and cooperatives.

The first is that to build a new countryside, first build new finance. To develop rural areas, we must start with finance. Finance here is new finance and has nothing to do with the finance run by the state. That kind of finance is not good for us farmers. The so-called new finance we practice is farmers' own finance, and financial cooperation is the foundation of all cooperation. So if you want to do cooperation, start with financial cooperation. If you start with other kinds of cooperation and then do finance, you will find this very difficult. Therefore, do financial cooperation first. I completely agree with Teacher Xu Xianglin's view.

Then it is service, service, and more service. Never rush into production, because service is not in excess, while production is in excess. Use profitable services to support loss-making services, and use loss-making services to gain people. The more people there are, the greater the total amount of our services, and the more profitable services there will be. So we must not only do profitable services, but also do money-losing services. Many services lose money, for example when we carry out technology extension, when we provide elderly care, or when after the New Year we purchase some consumer goods that may not make money, or when we organize a festival. These all lose money. But why do we do loss-making services? Because doing loss-making services can gain people. The more people there are, the greater the strength. What is the principle of our cooperative? It is to monopolize people. What do capitalists do? They have more money, but we have more people. We have more people, so demand is greater. Suppose you say I have 100,000 people. I monopolize the loan demand of 100,000 people. However much demand for fertilizer 100,000 people have, I monopolize that much demand. I am a large purchaser, and 100,000 farmers purchase together. Whatever price I say is the price. My monopoly over demand attacks the monopoly over supply. In the end, you must accept my socialist transformation. You have ten fertilizer plants, and I have one large cooperative. I have the power of decision and the power of life and death over producers. The more people there are, the greater our strength.

In the future, for any cooperative, any farmers' organization, the stronger your service capacity, the stronger your competitiveness. Competitiveness is determined by your service level. The fewer services you provide, the weaker your capacity. So you must find ways to do a good job in service. Service will not be in excess. Demand is endless, and service is also endless. So we must seriously study service. Capitalists like to promote the socialization of services. We must internalize and organize services. Do not casually use the term “socialization of services”; they all hope for the socialization of services. We must organize and internalize services. If we achieve this, we will succeed. So what Teacher Xu just talked about, Japan's comprehensive cooperative, is in fact the provision of comprehensive services, that is, combining many services, combining people, and internalizing services. My loans are internalized, my feed supply is internalized, my supply of edible oil to you is internalized, and my technical services are internalized. If our internalization of services is greater, then when they occupy more services, the space for our survival becomes smaller. That is the reasoning. So this is not only a question of money, but a question of method, a question of thought and philosophy. We must emphasize the question of our services.

Next I will respond to the matter concerning Haotang Village. As a person who runs a mutual fund cooperative, I only do embedded finance within the village community. Teacher Jiang Bailin believes that it is impossible to succeed at the village level, and that it should be done at the township level. I also agree with his view. In addition, I combine my finance with elderly care. Today I will talk about why I want to do this.

First, what must be responded to is the people in this circle in Beijing, and the struggle between two roads and two lines in our development of agriculture, rural areas, and farmers. If the Communist Party does not ally with the new bourgeoisie to eliminate small farmers, then China will be in great danger and will move onto the path of the Philippines, and reform will not succeed. After the Communist Party's revolution, there were two achievements: one is collective ownership, and the other is the village community. Whether these can be consolidated depends on the level of embedded financial development. When we place embedded finance into the village community, small farmers will become organized modern small farmers. If there is no finance in the village community, it will become powerless, and the village Party committee will become mafia-like. At that time, the two great achievements left by the Communist Party's revolution, collective ownership and the village community, will both disappear, and China will return to what it was before 1949.

Second, I think finance that serves farmers must be matched with the land system. Any finance that is not matched with the land system may run into problems or have weak vitality. For example, the Agricultural Bank of China does not respond to the land system. Farmers' greatest asset is land. Whoever can provide farmers with finance for land mortgage loans is serving farmers. Only after mutual-aid finance is established within the village community can land be mortgaged for loans. All finance outside the village community will not accept land mortgage loans. Including Japan, South Korea, and Taiwan, China, their early land mortgage loans were also mortgage loans through farmers' associations. Apart from that, finance will not accept farmers' land mortgage loans. We have been issuing property rights certificates to farmers for so many years now. Which bank is willing to provide mortgage loans? None. Can village and township banks do it? Village and township banks will not either. So only embedded finance can provide farmers with mortgage loans for land and housing.

There is also the free transfer of land. For example, after embedded finance is established within the village community, free transfer can be carried out, and pricing can even be done. For example, in September last year I developed the experience of Haotang Village and established a village-level economic finance trusteeship service cooperative in Yangzi Lake District, Ezhou City. This has several major functions. Farmers can value their land and deposit the money in the service cooperative. The price for mutual transfer and subcontracting of their land is only 80 yuan per mu, because it is hilly land and no one farms it, so it is only 80 yuan per mu. If your family has ten mu of land and you no longer operate it, and you deposit it for ten years, I will give you 8% profit; if you deposit it for 15 years, I will give you 9%; if you deposit it for 20 years, I will give you 10%. The longer you deposit, the higher the interest I give you, so it has the function of land storage. If you do not have money to buy a house in the city, you can withdraw the land money at any time. No problem. If you say you want to use land as mortgage for a loan, no problem, one mu of land can be mortgaged for 6,000. I will renovate it for you and help you operate it externally. Because Wuhan is not very far from Ezhou City, we can make use of houses and homestead land for external operation and cash realization, so you can mortgage your house and homestead land for loans at any time.