With the guidance and support of the China Banking and Insurance Regulatory Commission, the third Fujian Conference (online) of the China Rural gold 30 people Forum opened on April 27, 2022. During the meeting, Zhang Hongyu, vice president of China Rural Research Institute of Tsinghua University, said that financial support is essential to comprehensively promote rural revitalization, especially the development of rural industries. In view of the challenges faced by rural finance, we should achieve “three more”: more accurate positioning, more accurate services and more innovative products.
\u3000\u3000 1. Seeking progress while maintaining stability requires stabilizing the basic agricultural market
In 2021, the work of “agriculture, rural areas and farmers” will continue to improve. Zhang Hongyu believes that it is mainly reflected in the following three aspects: first, grain and important Shenzhen Agricultural Products Group Co.Ltd(000061) continued bumper harvests to meet the basic food needs of urban and rural residents. Second, farmers’ income continued to grow and the achievements in poverty alleviation were consolidated. Third, solid steps have been taken to comprehensively promote rural revitalization, and all aspects of work are progressing smoothly.
Zhang Hongyu said that under the complex and changeable situation outside China, uncertainties and unstable factors have increased significantly, and China is facing triple pressures of shrinking demand, supply shock and weakening expectations. Based on a comprehensive study of China’s foreign situation, he believes that risks and challenges have increased significantly, and we must climb over the ridge.
In this regard, Zhang Hongyu stressed that we should have a clear understanding. At present, the biggest challenge facing China’s agriculture is that it is increasingly difficult to balance Shenzhen Agricultural Products Group Co.Ltd(000061) supply and demand, and the dependence on imports continues to rise. In 2022, the Shenzhen Agricultural Products Group Co.Ltd(000061) import and export situation will be more severe. Therefore, we should hold the bottom line of national food security, hold the bottom line of large-scale return to poverty, and focus on the three key tasks of rural development, rural construction and rural governance, so as to stabilize the basic sector of agriculture, consolidate and expand the achievements in poverty alleviation, improve the relationship between workers and farmers, promote the healthy and sustainable development of the national economy, and firmly hold the basic sector of “agriculture, rural areas and farmers”.
\u3000\u3000 2. The task of comprehensively promoting rural revitalization is clear
The central government attaches great importance to food security and has repeatedly stressed that the Chinese people’s rice bowl should be firmly in their own hands at all times, and the Chinese people’s rice bowl must be filled with their own food.
To ensure national food security, we should adhere to the self-centered concept of food security. We should not only adhere to the principle of “basic self-sufficiency in grain and absolute security in rations”, but also have the bottom line thinking of “hiding grain in the land and technology”.
In this regard, Zhang Hongyu stressed the focus of five aspects: first, the protection of cultivated land is placed in a very important position, and the central government implements strict assessment, one vote veto and lifelong accountability to local governments. Second, to store grain in the ground, we should pay attention to the improvement of quantity and quality. 1.8 billion mu of cultivated land must be worthy of its name. Farmland is farmland and must be good farmland. The key is to comprehensively implement the three key actions to revitalize the grain industry. Fourth, improve the comprehensive agricultural production capacity, promote the construction of high-standard farmland, improve the level of agricultural machinery and equipment, improve agricultural production conditions, and ensure the maximum stable supply of grain, cotton, oil, sugar, vegetables and meat. Fifth, improve the enthusiasm of grain farmers. Through the integration of prices, subsidies, finance, insurance and other policies, let farmers have the enthusiasm to grow grain and consolidate the foundation of food security.
Zhang Hongyu believes that the premise of Rural Revitalization is to consolidate and expand the achievements of poverty alleviation. We should continue to pay close attention to it, make the life of the people out of poverty higher, ensure that there is no large-scale return to poverty, and earnestly maintain and consolidate the great achievements of expanding the battle against poverty. First, we should improve the monitoring and assistance mechanism. Focus on farmers who are easy to return to poverty among those who have been lifted out of poverty, strengthen monitoring and assistance, and ensure that there is no gap in work. Second, we should strengthen assistance to key counties for Rural Revitalization. We will implement projects to address weaknesses and promote development, increase investment in various policies, and strengthen infrastructure and public services. Third, we should pay attention to the two keys of industry and employment. Develop characteristic industries, achieve full employment, consolidate achievements and achieve sustainable development.
Zhang Hongyu stressed that the work requirements for comprehensively promoting rural revitalization this year are very clear. Each is a major industrial and livelihood issue, which is related to the overall situation and is inseparable from financial support. We need to make a difference and strive to achieve new results. He proposed three “all-round promotion”:
First, comprehensively promote rural development. We should aim at rural industries, extend the industrial chain, improve the value chain, protect the supply chain and improve the interest chain. Develop Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) new business forms, integrate the development of primary, secondary and tertiary industries, develop county rich industries and characteristic industries, strengthen the construction of County commercial system, promote the joint distribution of county and township logistics, and promote the establishment of stable Shenzhen Agricultural Products Group Co.Ltd(000061) production and marketing docking relationship. We will vigorously develop domestic services, logistics distribution and other living services, and promote local and nearby employment of farmers. Tap the multiple functions and values of rural industry, such as cultural inheritance and ecological maintenance, enrich the connotation, expand the extension, and promote the green development of agriculture and rural areas.
Second, comprehensively promote rural construction. Implement the requirements of Rural Revitalization for farmers and rural construction for farmers, adhere to the top-down and farmers’ participation, and promote rural construction in an orderly manner. Take the county economy as the center, strengthen the construction of rural infrastructure and improve the rural living environment. Do not engage in large-scale financing, development and construction, and do not blindly carry out large-scale demolition and construction. Based on strengthening the construction of inclusive, basic and comprehensive people’s livelihood, improve public services. Vigorously promote the construction of digital villages, expand the application scenarios of big data in agriculture and rural areas, and promote the extension of “Internet + government services” to rural areas.
Third, comprehensively improve the level of rural governance. Strengthen the responsibilities of county-level Party committees in grasping villages and promoting villages, give full play to the role of grass-roots party organizations as fighting fortresses, and summarize and promote the list system, point system and digital rural governance models in various places. Give full play to the role of mass organizations such as red and white Council, villagers’ meeting and moral evaluation meeting, and form a social atmosphere of civilized rural style, good family style and simple folk style. We will promote a higher level of rural construction under the rule of law, and earnestly safeguard the safety and stability of rural society.
\u3000\u3000 3. Financial support is promising
Financial support is essential to comprehensively promote rural revitalization, especially the development of rural industries.
In recent years, the country has made breakthroughs in financial reform, especially in structural innovation, product innovation and service innovation. “Now agriculture cannot do without financial support. Although we have built a relatively perfect agricultural support and protection system with Chinese characteristics, this support and protection system includes investment, subsidies, taxation, infrastructure, science and technology, but also includes financial credit and agricultural insurance.” Zhang Hongyu said.
Zhang Hongyu said that compared with tens of billions of agricultural subsidies every year, including 1 trillion-2 trillion budgetary financial support for agriculture is generally limited.
In addition, in recent years, in order to meet the financial needs of ordinary farmers and various new subjects, more and more financial derivatives have been innovated in the financial sector, and the coverage of financial services has become wider and wider. There are 230 “three rural” financial products launched in Agricultural Bank Of China Limited(601288) 2020 alone. In 2019, there were 425 exclusive varieties of agricultural insurance in the field of poverty alleviation alone. In 2021, China has formed the world’s largest agricultural insurance market, with a premium income of 96.518 billion, providing risk protection for 188 million secondary farmers of 4.78 trillion.
Zhang Hongyu said that after decades of innovative efforts, rural financial reform has formed a framework system of rural financial support and strengthening agriculture with unique Chinese characteristics: diversified institutions (policy, commerce and cooperation), diversified products (finance, insurance, credit, trust, etc.) and diversified services (entity and Internet), which better meets the financial demand side and diversified subjects (ordinary farmers, cooperatives, agricultural enterprises and collective economic organizations), Diversified demand (short-term loans, long-term loans, small and inclusive loans and large loans) and diversified portfolio (transformation from single credit and single insurance to finance + insurance, Finance + insurance + credit and other diversified transformation) requirements.
“But challenges also arise, especially the development of digital technology and the entry of many non-financial institutions into the financial field, such as Internet companies and large agricultural enterprises into the rural financial field.” Zhang Hongyu stressed.
On the one hand, the imbalance between supply and demand of Rural Financial Cooperatives has been greatly alleviated. However, due to the long tail effect, the financial needs of ordinary farmers have not been effectively solved. On the other hand, excessive competition puts too much pressure on the survival of many small and medium-sized rural credit cooperatives, and the operation of some cooperative finance is difficult. In short, for the financial demander, the microfinance demand of small farmers is still difficult; For the financial suppliers, some credit cooperatives and rural commercial banks are difficult to survive and develop.
Facing the above problems, how should the rural credit system develop and grow on the premise of survival? Zhang Hongyu mentioned the “three changes”.
First, more accurate positioning. Policy banks and commercial banks have different division of labor and positioning. They should have a unified market and an orderly and well functioning financial system. However, disorderly competition should not be allowed. Risk prevention and control is the top priority of the central government in stabilizing finance. On the one hand, differentiated support policies should be provided to meet the needs of different financial entities; On the other hand, we should strengthen the supervision of relevant behaviors.
Second, more accurate service. We should not only focus on large agricultural enterprises and good industries, but also implement the requirements of the central government to serve ordinary farmers, including consolidating and expanding the achievements of poverty alleviation and preventing large-scale return to poverty.
Third, more innovative products. With the help of digital technology, build big data platforms and application scenarios, meet the different demands of different subjects, and let finance play a greater role and strong support in promoting agricultural and rural modernization and comprehensively promoting rural revitalization.
