What is Multifamily Lending?

Farmers' loans refer to various types of RMB loans issued by rural credit cooperatives to eligible farmers in the service jurisdiction for production, operation, and consumption. The types of loans to farmers mainly include loans to farmers 'planting industry, loans to farmers' planting industry, and loans to farmers in other industries. The loans are targeted at general contractors and professional households. The bank's management of farmer loans should be adapted to the characteristics of the decentralized operation of the family's economy. In terms of loan use, quantity, term, and conditions, it must be tailored to local conditions and flexible to meet the needs of the working capital of individual farmers.

Farmer loan

The types of loans to farmers mainly include loans to farmers 'planting industry, loans to farmers' planting industry, and loans to farmers in other industries. (Such as contractor

The characteristics of farmer loans are

The problem of difficult loans for farmers is complicated, and there are many factors, which can be summarized as follows: ^[1]

Reasons for farmers' loans

(I) Policy and market factors

As an underdeveloped region in the central region, the proportion of traditional agriculture is relatively large, and the internal structure of agriculture is unreasonable. With the gradual deepening of rural reforms in recent years, adapting to the needs of the market economy, vigorously promote the adjustment of the agricultural structure, and gradually optimize the agricultural structure. Meet the requirements of national agricultural industry policies. Due to the influence of the region and the local environment, the relevant supporting policies are relatively lagging behind, and the short-term target behavior of the government is relatively prominent, which has affected the formation of the pillar agricultural industry and the deep development of agriculture. It is manifested by the lack of obvious agricultural leading industries and characteristics, and the focus is not prominent. During the structural adjustment, one-sided emphasis was placed on market orientation, while neglecting to take advantage of local resources. Some local leaders have severely interfered with administrative intervention, ignoring farmers' wishes, and rushed to adjust agricultural structure. With greater blindness. For example, for the development of sericulture in a county in eastern Hubei in the past few years, farmers were required to plant sericulture on a large scale. When the market conditions changed, the sericulture could not be sold, and the sericulture was dug out. Later, the market improved slightly, and the sericulture was re-planted. Digging mulberries has formed the strange phenomenon of planting mulberries, digging mulberries, replanting mulberries, and digging mulberries. As a result, not only the interests of farmers have been damaged, but also loans to agricultural banks and credit unions have been lost, which has dampened the enthusiasm of farmers for production and structural adjustment. . Agriculture is an industry with large investment, long cycle and small income. It has almost no profit for farmers. From a business perspective, the rural financial sector is reluctant to grant loans to this inefficient agriculture. This objectively restricts loans to farmers. Release. The unmatched local policies, lack of long-term vision and accurate grasp of the market, and improper administrative intervention will inevitably affect the effective functioning of credit functions and weaken their efforts to support agriculture.

(II) Funding factors

Farmers' loans are mainly issued by rural credit cooperatives. Due to various contradictions accumulated over the years and the impact of the big climate, credit cooperatives have encountered great difficulties in operating, with a high proportion of non-performing credit assets and generally insufficient financial strength. Restricted credit input to agricultural production and farmers. Insufficient funding is a prominent problem for rural credit cooperatives in less developed regions. Although the People's Bank of China has intensified its efforts to support agricultural cooperatives in refinancing loans in recent years, and the funds have generally been loosened, many credit cooperatives still have funding constraints. Many counties and cities' credit unions often use deposit reserves, and some counties and cities have to use emergency loans from the People's Bank of China for insurance purposes. The lack of funds of credit cooperatives is as follows: first, the quality of credit assets is consolidated, which has created a liquidity trap. Most credit cooperatives have non-performing credit assets accounting for more than 80%. A large number of non-performing credit assets have led to a decline in the ability of credit cooperatives to support agriculture; Credit unions suffered excessive losses and took up a large amount of funds, which caused difficulties for credit unions to pay. The pressure of losses not only weakened the ability of credit cooperatives to support agriculture, but also exacerbated their payment contradictions, creating a heavy burden. Third, short-term settlement and remittances in different places Several times of remittances, but also difficult to reach the account, so that farmers customers can not get fast and convenient services, resulting in some large households and public households have transferred to other banks, the business space of credit unions has been squeezed, funding capacity has been weakened, further leading to credit Social debt ratio imbalance.

(3) Rural credit environmental factors

In rural areas, especially in less developed and poor mountainous areas, people's credit consciousness is weak, the concept of the legal system is not strong, and the initiative to repay principal and interest on credit funds is relatively lacking. The rural financial industry is inherently risky in operation and relies heavily on legal institutions, but it is an indisputable fact that judicial efficiency is not high at present, and the legitimate rights and interests of the rural financial sector are not guaranteed. Many credit cooperatives have no choice but to adopt a negative attitude towards a large number of bad credit assets. They are generally reluctant to use prosecution methods to protect financial claims, leaving many credit assets in a state of natural loss. The phenomenon of rural administrative intervention in loans is also very serious. As the credit authority of grass-roots commercial banks has been closed in recent years and institutions have been merged, some county and township administrative departments have instructed credit unions to issue non-agricultural loans that should not be issued by credit unions. These loans are often All are borrowed or not repaid, so that those farmers who urgently need funds cannot get loan support.

(IV) Farmers' factors

For most farmers, the difficulty of borrowing is mainly due to the problem of solvency. At present, farmers' joint guarantees and mortgage guarantees are not complete. This measure has not yet been initiated in some remote mountainous areas. The lack of loan guarantee conditions is an important factor for farmers not receiving loan support. From the perspective of peasant households' mortgages, they are only obsolete farm machinery and houses. Since rural areas are far from urban areas, most of these mortgages have not been notarized and transferred. Mortgage of large-scale loans to farmers is virtually useless, and once the loans appear risky, the collateral is difficult to be protected by law. Especially in recent years, farmers' income has generally declined, and projects with little risk are afraid to develop. Farmers rely solely on farming and breeding, their income is very low, and they lack the ability to afford loans. Large credit loans can rarely be repaid after they are released. Therefore, credit unions' non-cooperative deposit certificates are pledged. Generally, loans are not enlarged. However, farmers who are solely engaged in breeding and raising industries rarely have large deposit certificates for pledges. This inevitably affects large Of loans.

(V) Factors of Lending Institutions

The first is to improve the internal control mechanism, increase the collection of loans and interest rates, implement a strict accountability system for loans, punish only those who do not reward, and make credit officers generally have a fear of borrowing mentality. In addition, the current credit union is gradually implementing the "work efficiency linked" personnel and salary system reform, so that credit personnel feel the pressure and responsibility of collecting loans and interest rates and ergonomics are increasing, driven by personal interests, causing credit personnel to fear and avoid risks. Ming Zhe protects himself.

Second, the amount and authority of the credit cooperatives' lending also restricted the issuance of loans to farmers. According to regulations, all loans above 5,000 yuan must be submitted to the county union for collective approval. Basic-level credit cooperatives can only issue a small amount of small loans below 5,000 yuan, which has affected the normal loans to farmers to a certain extent. In addition, the loan procedures are tedious, there are many links, and the time is long. Even if a small loan is issued, it can range from one month to 2-3 months from application to disbursement.

Third, there is a deviation in the implementation of the loan policy. If a credit cooperative requires a farmer to apply for a loan in the credit rating of a farmer, it must be rated as first or second. Those who do not have equity are rated as third and fourth, and third and fourth are not able to obtain loans, so that farmers who do not have human shares but need loans cannot get the support of credit unions.

Fourth, some credit personnel have unsound working styles, do not often go deep into the farmers, understand the production and capital needs of the farmers, insufficiently publicize the credit support policies of the credit cooperatives, and provide inadequate services. They have only responded passively. This phenomenon makes it difficult for those farmers who really need loans but have no road to obtain loans.

(VI) Policy factors of the People's Bank of China's agricultural loan support

Since the People's Bank of China introduced the policy of supporting agricultural re-loans in 1999, by continuously increasing the input of supporting agricultural re-loans, it has better solved the financial tightness of rural credit cooperatives, expanded the scope of loans for farmers, and strongly supported the development of the rural economy. The positive effect is obvious. However, from the point of view of the management of agricultural re-loans, the duration of agricultural re-loans is short and cannot be adapted to the cycle of agricultural production. Agricultural production has the characteristics of long cycles and strong seasonality, and its capital turnover is relatively slow. Generally speaking, the traditional crop production cycle is mostly more than 6 months, and the aquaculture industry is mostly more than 9 months. Some cash crops such as forests Fruit special products even take 2-3 years to produce benefits. The longest period of support for agricultural refinancing is one year, which is out of sync with the agricultural production cycle and inconsistent with farmers' needs, which makes some credit-deficient credit cooperatives take extreme caution in applying for and using agricultural refinancing. In fact, in the past two years, some funds for supporting agriculture could not be recovered on schedule. Credit unions had to use the borrowing funds to repay the People's Bank of China for reloans, which affected the enthusiasm of credit cooperatives for peasant household loans, and also affected the effect of agricultural loans.

Farmers' Loans Difficulties and Countermeasures

From the current point of view, solving the problem of difficult farmers' loans should be taken as the central task of the rural financial sector, especially the rural credit cooperatives. We must think and deal with problems from the standpoint of farmers, and consider whether it is in the interests of farmers and whether they are satisfactory The starting point and destination of the social support agriculture work. To this end, the following countermeasures are proposed.

One of the suggestions: increase investment in agricultural support and increase credit funds for agricultural support

At the Fourth Session of the Ninth People's Congress, Premier Zhu Rongji pointed out: "Agriculture is the foundation of the economy, agricultural issues are the primary issue for future economic development, and the source of funds should mainly depend on rural credit cooperatives." Therefore, rural credit cooperatives should give full play to the main role of rural finance, increase credit support for agriculture, further expand the scope of credit support for agriculture, expand service areas, and focus on loans to support farmers and agricultural production. The total credit input of credit cooperatives to support agriculture should not be lower than the level of the previous year, and the proportion of new loans to farmers and agricultural loans should reach about 70%. Credit unions must vigorously do a good job of fund organization, and carefully clean up the funds for external dismantling, lending, and foreign loans. The two-level cooperatives must do a good job in adjusting the funds vacancies of credit cooperatives within their jurisdiction to ensure the timely release of funds for agricultural support. When it is insufficient, they can apply to the People's Bank of China for agricultural re-loan as appropriate, reasonably determine the term and amount of the re-loan, and ensure that it can be used by credit cooperatives to increase loans to farmers.

Suggestion two: Clearly support key points and do well in structural adjustment

The rural financial sector must adapt to the needs of agricultural structural adjustment, expand the credit field, and focus on supporting structural adjustment by supporting the development of the rural economy and increasing farmers' income. Concentrated funds give priority to loans for farmer planting and breeding, loans for agricultural products processing, transportation, and small farm machinery for agricultural services, and support for agricultural production loans and diversified business loan for farmers and companies. In the process of rural economic development, large professional households play an important driving role, and they provide a broad space for the agricultural financial sector to expand credit. It is important to support the funding needs of major professional households engaged in agricultural restructuring. In order to prevent possible loss of credit funds due to structural adjustment, the government may establish an agricultural structural adjustment fund to enhance the farmers' ability to resist risks during the agricultural structural adjustment process. During the output period of the farmer advantage project, the government can withdraw five-thousandths of the risk adjustment fund based on the sales of agricultural products, as special support funds for agricultural development projects or risk compensation funds for newly developed agricultural projects. The government appropriately takes part from the adjustment fund as a price supplement to balance the farmers' psychology, protect the stable development of advantageous projects, and avoid short-term behaviors of following the feelings.

Recommendation No. 3: Optimize rural credit environment and improve social credit level

In this regard, we should learn from the practice of Gaozhou City, Guangdong Province, and in accordance with local conditions, vigorously promote the pilot project of "three trusts" in rural credit towns, credit villages, and users. The rural credit cooperatives, township (town) governments, village committees, and farmers On the basis of mutual trust, we will jointly establish a "four in one" social credit system. Specifically, through the evaluation of farmers' credit, the division of credit grades, the determination of credit lines, the issuance of loan certificates, etc., the establishment of a "one-household, one-grade" loan management system to improve the credit level of the entire rural society: To solve the urgent need for loan support without the corresponding protection For large-scale farmers' loans that meet the requirements, the government can lead the establishment of specialized intermediary guarantee agencies to provide corresponding guarantee services for farmers, and cultivate more farmers who meet both the loan policy and the loan conditions, in order to win further support from credit cooperatives. We will improve the network system of rural agricultural guarantee loans. The small farmers' small loans can be guaranteed in natural villages and groups. The large rural professional households should be guaranteed by the members of the township and township breeding professional associations, regardless of the type of insurance. The insurance should be completed in order to achieve both joint guarantee and joint responsibility.

Recommendation No. 4: Improve Credit Management Mechanisms Adapted to Rural Economic Development

First, credit loans can also be implemented for large-scale farmers' loans. On the basis of improving the farmers' economic files and consolidating the farmers' information consulting system, the amount of credit loans for farmers is appropriately increased. For different farmers, different agricultural projects are permitted to issue more than 5,000 yuan. , Credit loans below 20,000 yuan.

Second, the right to approve farmers 'loans is appropriately delegated. For large-scale farmers' loans of less than 20,000 yuan, as long as the funds are sufficient, they can be issued by township credit cooperatives, and only report to the federation for the record.

Third, while strengthening the internal control mechanism, establish a credit incentive mechanism, implement a credit marketing responsibility system, and issue credits for agriculture, rural areas, and farmers and expand the scope of loans to farmers as part of the assessment of credit personnel. While carrying out the reform of the personnel and salary system, it is necessary to take full account of local realities, formulate as many practical and relevant supporting measures as possible, ensure the balance of responsibilities, rights, and benefits, and fully mobilize the enthusiasm and creativity of credit personnel. To eliminate their "loans of fear".

Fourth, the accountability of loans should be treated differently. If large breeding and breeding businesses do incur loan losses due to natural disasters, credit officers should not be held fully responsible to alleviate the psychological pressure on credit officers.

Recommendation 5: Improve work style and financial services

While strengthening loan management, in accordance with the principles of flexibility, convenience, and safety, improve loan methods, simplify loan procedures, and facilitate farmers' loans. Promote the open loan system and realize the "four public" of loan disbursement, that is, plan publicity, target publicity, quota publicity, and interest rate publicity, in order to accept the supervision of farmers and increase transparency. Credit unions should further improve their work style. Credit personnel should always go deep into the farmers, do a good job of investigation and research, and understand the farmers' production and living capital needs in a timely manner. Think what farmers think, and what they need, and provide farmers with funds, information, and technology. In terms of services, be a good staffer for getting rich from farmers.

In the long run, in order to solve the historical burden of credit cooperatives and strengthen their financial strength, it is necessary to increase support for credit cooperatives from a policy perspective.

The first is to implement preferential tax policies. Grain, cotton, and oilseed crop loans issued by rural credit cooperatives should be exempt from business tax, credit cooperatives in poor areas will continue to be exempt from income tax, and high-risk credit cooperatives will be exempt from tax concessions for a certain period of time to enable them to rest and reduce their financial risks.

The second is to implement preferential fiscal policies. The state finance should subsidize the losses incurred by credit unions as a result of undertaking policy-based loan operations and discounted interest payments on value-saving deposits previously paid by credit unions.

The third is to reasonably digest historical burdens. It can be considered: A. Returning the bad assets that the Agricultural Bank dumped to the credit cooperatives to the Agricultural Bank when the bank was decoupled; B. Past policy-based agricultural Dazhai loans, village group collective loans before the household joint production contract responsibility system Most of the small hydropower loans have become bad debts, and the national and local governments should use the special funds to cancel the principal and interest; C. For the credit unions in recent years, policies such as disaster relief, poverty alleviation, collective economic support, and agricultural industrialization construction The non-performing assets formed in the sexual agricultural support business should be jointly established by the State Finance and the People's Bank of China as a non-performing asset management agency of credit unions, and they should be divested in the form of acquisitions. Affordable credit unions are allowed to increase the rate of cancellation of bad debts.

The fourth is to implement low-cost financing policies. Governments at all levels can arrange a certain amount of financial funds to be loaned to credit cooperatives for low-interest-rate and long-term (three to five years) revolving use. The company implements low-interest short-term financing and increases funding support for rural credit cooperatives.