Why Agricultural Modernization Cannot Do Without Financial Support
Agricultural Modernization Cannot Do Without Financial Support
(Agricultural Wealth Network) The experience of the Xisen Group in exploring the development of potato industrialization once again proves that the development of agriculture and rural areas cannot do without financial support.
At present, China has entered a critical period of accelerating the transformation of traditional agriculture and taking the path of agricultural modernization with Chinese characteristics. An important hallmark of rural modernization is the improvement of the level of agricultural science and technology. China is a major agricultural country and should possess agricultural scientific and technological strength commensurate with this status. However, agricultural scientific and technological innovation and extension require substantial investment, and financial support is an important force in promoting agricultural scientific and technological progress.
After 30 years of reform and development, the face of China's rural areas has undergone fundamental changes. In this process, rural finance played an important driving role. In particular, with the reform of rural credit cooperatives, the reform of the Agricultural Bank of China, and the establishment of new-type rural financial institutions, financial support for agriculture, rural areas and farmers has been further strengthened, and a large number of leading enterprises and agricultural industrialization projects have developed rapidly.
The advancement of the building of a new socialist countryside, the development of the rural economy and society, and the industrialization and modernization of agriculture have placed higher demands on finance. However, due to the particularity of agriculture, agricultural projects involve large investment, long cycles and high risks, so most enterprises are unwilling to undertake agricultural projects, and most banks are unwilling to support agricultural projects.
To resolve this contradiction, a multi-pronged approach is needed. First, state finance should unswervingly increase its investment in and support for agriculture. It should not only maintain traditional subsidy programs but also expand the scope of use of special funds, and provide funding and policy support for modern agricultural projects undertaken by leading enterprises in agricultural industrialization. Second, enterprises engaged in agricultural projects should, in accordance with the principle of doing what their resources permit, develop scientifically and advance steadily. They must keep their debt at a reasonable level, and once risks arise, they must have the necessary capacity to cover those risks. Third, rural financial institutions must support agriculture, rural areas and farmers with a sense of responsibility and emotion. At the same time, under the premise of controllable risks, they should select projects that conform to national industrial policy and support them, so as to achieve sustainable commercial development. In addition, because rural financial institutions bear higher risks than other commercial banks, the state should also increase support for rural financial institutions so that these financial institutions have the sustained capacity to support agriculture, rural areas and farmers.
In recent years, China has attached increasing importance to the development of the potato industry, and all parties are working together to turn the small potato into a big industry. This year the state began subsidizing virus-free pre-basic seeds and basic seeds of potatoes, and the Xisen Group will usher in greater development. The cooperation between the Xisen Group and the Agricultural Bank of China has provided us with a successful case. It shows that as long as there is strong financial support and as long as leading enterprises unswervingly advance projects related to agriculture, rural areas and farmers, agricultural industrialization can achieve remarkable results. We look forward to more agricultural industrialization projects receiving better financial services, to a great improvement in the level of agricultural science and technology and modernization in China, and we also hope that China will soon become a strong agricultural country from a major agricultural country.
At present, China has entered a critical period of accelerating the transformation of traditional agriculture and taking the path of agricultural modernization with Chinese characteristics. An important hallmark of rural modernization is the improvement of the level of agricultural science and technology. China is a major agricultural country and should possess agricultural scientific and technological strength commensurate with this status. However, agricultural scientific and technological innovation and extension require substantial investment, and financial support is an important force in promoting agricultural scientific and technological progress.
After 30 years of reform and development, the face of China's rural areas has undergone fundamental changes. In this process, rural finance played an important driving role. In particular, with the reform of rural credit cooperatives, the reform of the Agricultural Bank of China, and the establishment of new-type rural financial institutions, financial support for agriculture, rural areas and farmers has been further strengthened, and a large number of leading enterprises and agricultural industrialization projects have developed rapidly.
The advancement of the building of a new socialist countryside, the development of the rural economy and society, and the industrialization and modernization of agriculture have placed higher demands on finance. However, due to the particularity of agriculture, agricultural projects involve large investment, long cycles and high risks, so most enterprises are unwilling to undertake agricultural projects, and most banks are unwilling to support agricultural projects.
To resolve this contradiction, a multi-pronged approach is needed. First, state finance should unswervingly increase its investment in and support for agriculture. It should not only maintain traditional subsidy programs but also expand the scope of use of special funds, and provide funding and policy support for modern agricultural projects undertaken by leading enterprises in agricultural industrialization. Second, enterprises engaged in agricultural projects should, in accordance with the principle of doing what their resources permit, develop scientifically and advance steadily. They must keep their debt at a reasonable level, and once risks arise, they must have the necessary capacity to cover those risks. Third, rural financial institutions must support agriculture, rural areas and farmers with a sense of responsibility and emotion. At the same time, under the premise of controllable risks, they should select projects that conform to national industrial policy and support them, so as to achieve sustainable commercial development. In addition, because rural financial institutions bear higher risks than other commercial banks, the state should also increase support for rural financial institutions so that these financial institutions have the sustained capacity to support agriculture, rural areas and farmers.
In recent years, China has attached increasing importance to the development of the potato industry, and all parties are working together to turn the small potato into a big industry. This year the state began subsidizing virus-free pre-basic seeds and basic seeds of potatoes, and the Xisen Group will usher in greater development. The cooperation between the Xisen Group and the Agricultural Bank of China has provided us with a successful case. It shows that as long as there is strong financial support and as long as leading enterprises unswervingly advance projects related to agriculture, rural areas and farmers, agricultural industrialization can achieve remarkable results. We look forward to more agricultural industrialization projects receiving better financial services, to a great improvement in the level of agricultural science and technology and modernization in China, and we also hope that China will soon become a strong agricultural country from a major agricultural country.