How to reform the agricultural supply side reform? What to change?

[ China Agricultural Machinery Industry News ] Promoting structural reforms in the supply side of agriculture is the result of pressing problems. The problem is related to development and the cause of reform. The annual Central Economic Work Conference came to an end and clearly set the direction for agricultural work next year: to further promote the structural reform of the supply side of agriculture. How to change the agricultural supply side reform? What to change? It is understood that the relevant documents to be discussed at the upcoming Central Rural Work Conference and Conference will give an answer.

How to reform the agricultural supply side reform? What to change?


Multi-dimensional adjustment of agricultural supply side
From the Central Political Bureau meeting to the Central Economic Work Conference, they have successively conveyed important signals to deepen the structural reform of the supply side of agriculture. This may mean that the Central Rural Work Conference will launch detailed agricultural work deployments with supply-side reform as the main line.
"The reform of agricultural supply side has two main aspects. One is the transformation and upgrading of traditional industries. The positioning and classification of this piece will be more detailed." Liu Zhiren, a State Council counselor, told reporters that the transformation and upgrading is ultimately to achieve the quality and efficiency of agricultural development. In the past, the development of agriculture always attached importance to efficiency, but in the future it was necessary to emphasize quality.
The Central Economic Work Conference clearly stated that it is necessary to place increased supply of green agricultural products in a prominent position, and pay close attention to standardized production of agricultural products, brand creation, and quality and safety supervision.
The National Agricultural Modernization Plan (2016-2020) (hereinafter referred to as the “Planning”), which was promulgated in October this year, also proposed five aspects to ensure the quality and safety of agricultural products. The specific measures include the implementation of the five-year action plan for the revision and revision of agricultural standards. Establish agricultural standardization demonstration zones, build agricultural brand systems and agricultural product traceability systems.
"The other side of the supply-side reform is to actively and quickly cultivate new formats, including rural tourism, ecological agriculture, rural e-commerce, etc." Liu Zhiren said. The "Planning" also proposed the development of new agricultural formats. Including the accelerated development of e-commerce of agricultural products, it is required that the online retail sales of agricultural products at the end of the “13th Five-Year Plan” account for 8% of the total agricultural output value.
In addition, "the structural excess of agricultural products in traditional industries also needs to be resolved. It is necessary to adjust in the production process, and next year it will increase the promotion of the fallow rotation system." Liu Zhiren said.
According to the data, the pilot area of ​​the arable land rotation system in China this year reached 6.16 million mu. After 3 to 5 years, the scale of the pilot will be expanded in due course.
When talking about the adjustment of agricultural product structure, Li Guoxiang, director of the Institute of Rural Development of the Chinese Academy of Social Sciences, said: "Through structural adjustments in terms of planting and breeding, the supply relationship of agricultural products has been improved, and the price has been maintained in a stable and upward direction."
Taking corn as an example, this year, while adjusting the corn planting structure, the state promoted the reform of the corn storage and storage system with the core of “market pricing and price compensation” to ensure the stability of agricultural product prices. On the basis of this year's work, the Central Economic Work Conference has once again stressed that it will actively and steadily reform the price formation mechanism and storage system for important agricultural products such as grain.
Revitalizing the rural financial system
It is also learned from industry experts that while reforming the supply side of agriculture is intensifying, rural financial innovation reform is also expected to make a breakthrough next year.
In recent years, the country's agriculture-related loans have grown rapidly, showing huge capital needs for rural development. According to the report of the China Banking Association, as of the end of 2015, the balance of agricultural loans of banking financial institutions was 26.4 trillion yuan, a year-on-year increase of 11.7%, and new loans related to agriculture accounted for 32.9% of new loans in the whole year.
However, at present, China's rural financial supply is still not able to meet the growing diversified needs. Huatai Securities (17.880, -0.19, -1.05%) research report said that with the reform of land circulation reform and the increase of new agricultural business entities, a large number of financing needs emerged, but the supply of rural financial services is far below the national average. It is necessary to focus on upgrading the rural financial service system and speed up the establishment of a sound rural inclusive finance and security system.
In response to this problem, the "Planning" focuses on innovative financial support for agriculture. It is required to improve the credit support policy, strengthen the support of development finance and policy finance for agricultural development and rural infrastructure construction, establish and improve the incentive and evaluation mechanism for commercial banks to develop agriculture-related financial services, and steadily promote the internal credit cooperation of farmers' cooperatives.
In addition, “the reform of the rural investment and financing system is also the focus of the next step.” Li Guoxiang said, “Now investing in agriculture depends mainly on finance. If we want to change this situation, we must use fiscal as a lever to incite more social capital and financial capital investment. Agriculture, this is also the policy direction that the country is pursuing."
In terms of specific measures, he believes that it is possible for the state to set up a guarantee company or an insurance company through financial injection. If there is a risk after the social capital is invested, such policy guarantees and insurance companies can pay a part of it, so that banks and other parties can The enthusiasm of the mobilization has attracted more capital to invest in agriculture.

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