Study On Financial Support For Agricultural Industrialization

The Agricultural Industrialization strategy being implemented currently is an innovation and development of the rural system reform from managerial system. It comes after the implementing of Household Contract Responsibility System in the eighties in the process of the construction of Socialist Market Economy System. It points a way out for improving agricultural benefit, increasing farmers' income and developing rural economics. Agricultural Industrialization not only can settle the conflicts between farmers' small scale production and the mass production of the socialized market, improve agricultural efficiency, increase farmers' income, and promote agricultural science and technology, but also can boost the employment and diversion of surplus rural labor and accelerate the all-in-one process of the urban and rural areas. As our experience and practice of Agricultural Industrialization in the past over ten years shows, the development of Agricultural Industrialization is restricted by multiple factors, especially the want of fund, which has seriously checked the advance of Agricultural Industrialization. For the future, commercial financial credit support will surely become the inevitable choice for the Agricultural Industrialization as a result of the establishing and perfecting of the market economy system, the cutting down of the agricultural fund from the government and the limited investment of agricultural enterprises and farmers. However, the Financial System Reform has posed a trouble for Agricultural Industrialization as it advances these years. In the course of commercialization reform of financial institutions, inanition in fund emerges in the countryside areas. Worse of all, the incomplete financial services and products, theimperfect rural financial organizational system together with deficient new financial institutions such as agricultural insurance and agricultural venture capital fail to meet the demands of Agricultural Industrialization's iurther development. Therefore, the government must deepen the reform of rural financial system and increase the financial support for Agricultural Industrialization in the course of advancing Agricultural Industrialization.