Studies On The System Of Chinese Agricultural Policy Finance

Theoretical origin of agricultural policy finance is governmental intervention after the malfunction in agricultural money market. And governmental malfunction result in low efficiency in the system of agricultural policy finance. This paper uses the theories of institution and economic development of New Institutional Economics to discuss that the low efficiency in the system of agricultural policy finance is due to the substitution of the administrative mandatory order arrangement for the economic contractual institutional arrangement. Making definite the difference between financial credit and policy financial bank credit, the paper gives some definitions for the system of agricultural policy finance. Agricultural policy finance is defined as some financial serving for some special agricultural economic fields that are difficult to get loans from commercial or cooperative financial' institutions, and its loan rates1 are lower than others. The paper innovatively studies the different duties between the financial department and the agricultural policy financial institution. Then it clarifies the five characteristics and the five functions of agricultural policy finance, which are bank credit, breaking even or little profit, policy scope, remedy, supporting characteristic, and credit, remedy, supporting, initiative and serving functions respectively.The feature of the system of agricultural policy finance in each country varies. The paper uses the method of comparative finance to introduce the systems of agricultural policy finance of America, Japan, France, Thailand, India and China, compares and analyzes them, then concludes some experiences that deserve using for reference: High efficiency leading and organizational system, flexible institution and policy, stable funds sources, appropriate funds application, perfect functions of policy finance, specific and reasonable external relationship.According to the new economic and financial trend, and the practical experience of the system of Chinese agricultural policy finance, and study the experience of other countries, the paper brings forward the aim of the system reform of agricultural policy finance in the new period: The association measure of plan and market in the management system offinancial enterprises, flexible institution and policy, perfect functional mechanism and reasonable external relationship. In the end, the paper brings forward some countermeasures according to the problems in the system of agricultural policy finance, which are establishing financial enterprise corporative status of Agricultural Development Bank of China accurately, proposing deepen the system reform of Agricultural Development Bank of China, speeding up the reform of state-owned foodstuff enterprises, adjusting and perfecting the system and policy about foodstuff and foodstuff safety, and strengthening the supporting and serving measures of agricultural policy finance in the practice period.