Ningxia Financial Support Agriculture Funding Mechanism Innovation Research

Agriculture is the foundation of the national economy. The development of agriculture and rural economy impact to the healthy development of national economy and the construction of socialist harmonious society. However, these are lots of issues still very serious in western minority poverty areas, including weak China’s agricultural infrastructure, lagging development of rural public service system, large range between urban and rural residents income gap. Now the development strategy that "promote agriculture through industry","town-driving-country", and "industry re-feeding agriculture" has been established. Solving the "three rural issues" and ensuring the rapid development of agriculture and rural economy will be conducive to maintain steady and rapid growth of national economy and social stability. Whereas due to the weak nature that high risk investment, long investment cycle and unstable rate, the support for agriculture are more rely on the fiscal investment. And the inadequate financial support of " three rural issues" and limited supporting of national finance for agriculture development are problems which are not be able to completely solve. At the same time, the current low efficiency of funds is also a reality.In order to keep the rural social stability and sustained and healthy development of rural economy, under the big frame of public finance system reform, the innovation of financial support agriculture funding mechanism is more urgent. So the primary task is seizing the historical opportunity to constantly improving the limited usage of financial funds for supporting agriculture efficiency, functioning the financial funds for supporting agriculture, and guiding the various social funding put into the rural areas. Only above measures can solve the development bottleneck of "the three rural issues".As the western minority areas, Ningxia has a big problem for the development of agriculture, farmer and rural area. That means a shortage of funds. On the one hand, modern agriculture and rural economic development needs a lot of money. Financial support agriculture, on the other hand, is limited by input, then the fund can’t completely meet the "three rural" development needs. At the same time, business capital and other social capital are urban-oriented and departed from the countryside, make the rural capital fled and bottleneck problem occurred. So that innovation finance support agriculture funding mechanism is Ningxia’s reality that further deepening the reform of financial support agriculture and solve the issue of inadequate agricultural financial support. Although Ningxia is committed to reform and innovation of agricultural financial subsidies in recent years by taking a variety of measures to increase fund support, such as implementing incentive mechanism, replacing subsidies with awards, building and following-repairing, using fiscal interest discount funds, local matching, and integrating capital. At the same time, the regional government implements the policy that supporting and guiding, making a performance evaluation, establishing a sound and performance oriented management mechanism to the major fiscal investment projects. Basic on that, these are significant results in many aspects by the use of "all-in-one-card","mutual village fund"," investment replace appropriation", and building lots of regional financial support agriculture financing platform. Most of those achievements have also been domestic promotion and application and setting up a more stable growth mechanism of financial funds for supporting agriculture. Through that mechanism provides the development of "three rural" economic and social a strong funds guarantee mechanism. In the meantime, we must know that the financial funds for supporting agriculture in Ningxia exists some problem-the capitals are diversified by various government departments; there is a lack of integration mechanism; management mechanism is not scientific; financial service efficiency of funds for supporting agriculture is low; the support channel is single make capital investment enthusiasm for financial capital; and agricultural financial support agriculture effect is ineffective. All those problems are in urgent need of reform and innovation.With the beginning of the related concepts and theory of financial funds for supporting agriculture, this paper conform to China’s current reform of public finance and strengthening the people’s livelihood finance trends, and finnly grasp the latest trends and basic requirements innovation of the financial funds for supporting agriculture input mechanism. Furthermore, through detailed empirical analysis of the current situation and problems of financial funds for supporting agriculture in Ningxia, the author systematically expounds the necessity and significance of the innovation of financial support agriculture input mechanism. In comprehensive consideration of the reality of "three rural issues" in Ningxia, the paper is realize the following goals for innovating the mechanism of financial funds for supporting agriculture:to guide diversified investment in agriculture, promote regional agricultural economy structure adjustment, Implement the equalization of public service and increasing the service efficiency of financial funds. Finally, the author puts forward the innovation path of fiscal agriculture input mechanism in Ningxia, including the establishment of integration mechanism for agricultural financial supporting and setting up the following mechanisms:the mechanism for operating agricultural investment and financing; the mechanism of developing special advantage industries by multi-party cooperation, the mechanism of fiscal and financial linkage and evaluation and supervision, etc. Furthermore, through the analysis of dozens case in Ningxia, the paper brings forward same innovative concepts for financial support agriculture:"investment replace appropriation" and "First guarantees, then evaluate and awards" mechanisms; actively guiding and encouraging commercial capital, private capital and foreign capital to regional agricultural advantage industries; establishing a seven party cooperation mechanisms that "government +government investment and financing platform+financial institutions+Dairy farming park+feed supply enterprises+dairy products processing enterprises+insurance company". All the above measures can speed up the regional agricultural advantage industry development. With profitability financial concept, we can increase the rural public products supply, promote the socialism new countryside construction, lead to establish multiple investment mechanism of agricultural financial subsidies, complete the crucial autonomous poverty alleviation task, make use of state platform to put into fiscal funds and set up regional rural financial system to settle "three rural issues" and so on.The deeper meaning of the paper is to change the past pattern which was often just consider the innovation of agricultural financial subsidies to be a responsibility for finance department or the competent departments of the government. That opinion would let us ignore the financial funds for supporting agriculture innovation is a systematic project. It needs financial sector, financial industrial organization, leading enterprises, foreign organizations and farmer specialized cooperatives go together and cooperation. Moreover, combined with industry and capital, we need more overall consideration to the reform of national tax system and the actual situation of "three rural issues". Only in this way, the opinions and suggestions about financial support agriculture funding mechanism innovation will have vitality and practical value.Based on the path analysis and case study of the financial funds mechanism for supporting agriculture in Ningxia, this paper make a conclusion that the innovation investment mechanism of agricultural financial subsidies will directly enhance the efficiency of funds, adding investment subjects in agriculture and rural areas, promoting the industrialization of modern agriculture and settle "three agriculture issues".