Developing agricultural insurance provides guarantee for the development of agricultural supply chain finance

2022-07-17 0 By

Red Star News (reporter but Tang Wen) reported on January 24, “The traditional financial field rarely involved in the vertical financial services of agricultural enterprises, such as bank loans, equity financing and other ways to promote the long-term development of agricultural enterprises.Some agricultural enterprises face the problem of high management costs and small loan lines.”Cen Cui, deputy of Chengdu People’s Congress and deputy director of Chengdu Film and Television City Management Committee, pays great attention to rural revitalization. In her opinion, logistics finance, agricultural product supply chain and financial mode can effectively relieve the pressure on the rural financial industry chain.At this year’s two sessions, Cen Cui brought a proposal on developing agricultural Insurance to provide guarantee for agricultural supply chain finance and boost rural revitalization.Cen Cui believes that innovating agricultural supply chain, effectively controlling its risk prevention in the new rural construction environment, and improving the adaptability of financial model in the new rural construction are important issues in the current rural economic development and social construction.Accompanied with the process of agricultural modernization and industrialization, the agricultural supply chain finance arises at the historic moment, the new financing way, will be more than a single enterprise of uncontrollable risk into controllable risk for supply chain as a whole, realize the “four circulations” supply chain (logistics, business flow, information flow, capital flow) of control and mastery.It broadens financing channels for small and micro enterprises in the supply chain, reduces financing costs, and is conducive to the sustainable development of the whole supply chain.”At present, agricultural financing is characterized by high cost, high risk and low yield, while financial enterprises are inherently risk-averse, and there are inherent contradictions and constraints in agricultural financing in China.”Cen Cui said that its specific risk mainly reflects the core enterprise risk and use risk.”Farmers and small producers produce products with low profits and non-standard management, and there is often a risk that loans will be used for non-productive consumption. Even if the funds are used for agricultural production, there are still large natural and market risks.”Cen Cui suggested that more efforts should be made to develop agricultural insurance to guarantee the development of agricultural supply chain finance.First, agricultural insurance institutions should be included in agricultural supply chain finance. Banking institutions and insurance institutions should cooperate to intervene, evaluate and manage the whole agricultural supply chain in advance, so as to achieve effective support for the whole chain and overall risk control.Through joint consultation, the three parties of government, Bank and Insurance will actively explore a recycling compensation and regeneration mechanism of insurance funds with effective financial support and viable commercial operation under the principle of marketization, so as to ensure that agricultural insurance institutions play a benign and sustainable role in agricultural supply chain finance.Solve the problems of core enterprises and farmers, reduce the worries of banks.Second, combining with the local actual situation, we should construct the agricultural insurance development mode and agricultural insurance system suitable for local characteristics.It is suggested to increase agricultural insurance types, gradually improve and develop small-scale agricultural insurance, explore the complementary mode of agricultural policy-based insurance and commercial insurance, explore the establishment of agricultural insurance catastrophe risk protection fund, and enhance the coverage of agriculture-related insurance business.