White Paper, the new agriculture business entities in rural financial institutions to expand financial services major clients. Funding needs of new agricultural business entities has the following characteristics. First, large-scale demand, pay more attention to production financing, which makes financial institutions face a broader space for development. Second, the demand for funds showing a diverse, covering various industries and various sectors. New agricultural business entities tend to operate a wide range of projects, the industry chain have financial needs, both farming and aquaculture production processes, but also closely linked to agricultural production and processing industry, transportation, circulation and business services. Third, the financial stability and long-term needs, according to the agricultural production cycle, the investment required and the expected benefits of the point of production, and other equipment have stability. Fourth, the financial services convenience and flexibility have higher expectations. Fifth, the special nature of agricultural commodity production determines the greater the need to improve agricultural risk-sharing mechanisms.
Survey data also show that, compared to traditional farmers new agricultural business entities credit history and credit record more favorable, regulatory costs are lower, financial institutions more quality customers. Higher borrowing needs new agricultural business entities, the proportion had reached 52% of the loan, while 72% of the surveyed farmers have said the recent borrowing requirements.
However, according to the findings of the white paper, the current rural financial products is still relatively simple, it is difficult to meet the financing needs of new agricultural business entities. Overall, farm financial market situation has not fundamentally changed, in addition to private borrowing, formal rural financial market is still by the rural credit cooperatives, the leading commercial banks, commercial banks and financial institutions, mostly in the experimental support for new agricultural business entities the exploratory stage. The survey found that new agricultural business entities for financial services provided by the existing financial body has higher expectations, as further increase in loan products, increase the amount of agricultural loans, a reasonable set of loan terms, to give preferential interest rates, lower loan threshold, improving to do Credit speed.
It is worth noting that the rapid advance of information technology in rural areas, Internet + finance will effectively stimulate the vitality of the rural financial market has great potential to promote the development of modern agriculture. Research found that the Internet has gradually gained popularity in rural areas, 68% of respondents use the Internet, and a higher proportion of smart phone mobile Internet. Internet sales services there is a big gap in demand, farmers demand for Internet services and expand sales of agricultural technologies (including technical training, expert guidance and counseling agriculture) are very large.
Guo Xiaoming Sichuan Academy of Social Sciences in the “supply side of agricultural reform and the financial needs of new farmers in Sichuan Seminar and conference report”, said the new agricultural cultivation of business entities is one of the key central rural work. “The current two major changes taking place in rural China. A major change is that the agricultural business entities specialization. Another major change is that rural and agricultural information. The Internet is fast integration with most traditional industries, and continue the transformation of traditional industry.”
“On the occasion of China’s economic transformation and upgrading, the letter should help farmers finance the company’s Internet practice and highly consistent national policy guidance, and achieved some success. Letter should serve the rural market for many years, accumulated a lot of agricultural data resources. Based on these agricultural data, including before the company has established with agricultural enterprises, manufacturers of agricultural resources, the letter should be explored in the agricultural and rural finance industry chain of mobile financial innovation, and hope that this platform has local agricultural enterprises, agricultural auto industry chain, the farmers entered, the full range of financial services to meet their needs. “Xu Chao Yi, general manager of Pratt & Whitney letter Agricultural Loan integrated management Ministry said.