The Experiential Research Of The Financial Support For Agriculture Industrialization In Developed Countries

At present, the financial support systems of agricultural industrialization in developed countries, such as America, Japan, France, German, have been relatively perfect. They have three common characters in the process of establishing rural financial system: co-finance is an essential part of the agricultural financial system; commercial finance in an important part of the agricultural financial system; and policy finance is a supplement agricultural financial system. Compared with developed countries, the innovation of the rural financial system in China is now entering the stage of tackling the key problems. The Third Plenary Session of the 17th Central Committee proposed to establish a modern rural financial system, pointing out the direction for deepening the rural reform. Investigating the rural financial system in developed countries will not only help us rich the theory on rural finance and absorb their experiences, but also provide both theoretical and scientific support for the system reform, institutional innovation, and policy options of rural financial system. By comparing the rural financial system from developed countries, we can learn experiences and avoid mistakes in the process of innovation.Financial support plays a leading role in the process of China's agricultural industrialization. Besides, the advantage of financial institutions also promotes the development of rural agricultural industrialization. In addition, the rapid development of agricultural industrialization needs the support of massive funds. Since financial institutions can collect social idle funds efficiently with low cost, they can guarantee the large amount of funds using in the agricultural industrialization. The article includes the following developed countries as investigating the financial support for agricultural industrialization:The American rural financial system is a in a complex model. One the one hand, from the perspective of Agricultural Credit Fund, there are both professional rural institutions and other types of financial institutions; on the other hand, from the perspective of financial organization system, there are generally policy-oriented, cooperative, and commercial financial agencies.The Japanese rural finance mainly divides into cooperative finance and agricultural policy finance. Cooperative finance refers to"Agricultural Cooperation", which provides loans to members for helping each other. Policy finance refers to the financial support provided directly or promoted by the government, such as the Japanese financial bank for Agriculture, Forestry and Fisheries. The Japanese financial institution composed of cooperative finance and agricultural policy finance is an important guarantee for the rapid development of its agriculture.In German agricultural finance system, the amount of commercial banks specializing in agricultural finance is small, while the cooperative banks and credit unions are the most important agricultural financial institutions. 60% of the agricultural credits are provided by cooperative banks and credit unions. As a result, the German financial system is led by the cooperative finance, with the assistance by other financial institutions.As one of the world's most important agricultural countries, France is the biggest agricultural producer in the European Union and the world's major agricultural exporting country. The French government has taken a number of subsidy policies to support agriculture, and set up specialized agencies for the agricultural development, from which we can see the high emphasis of agricultural development by the French government.From developed to developing countries, every country gradually formed its own financial system with their specific characteristics according to the actual situation. Both rural finance and rural economy have improved dramatically, which provided an important inspiration to the development of Chinese rural finance.By comparing and analyzing foreign experiences, we must develop modern agriculture in order to improve the existing rural financial system. The rural financial system is composed of rural cooperative financial system, rural policy-oriented financial system, and the agricultural insurance system. They complement and promote each other, and work together to promote agricultural development. The cooperation between agricultural cooperative financial organizations and agricultural insurance can meet the needs for carrying out the policy-oriented financial work in rural, which is also the fundamental way for our country to direct farmers organizing social production to improve economy. The development of policy-oriented agricultural finance must be based on the healthy development of cooperative finance.The development of rural financial system needs the government's help. The distinct nature of agricultural operations decides that the development of rural financial requires the government, rather than the support by commercial banks. Every country's construction of agricultural industrialization is based on the government's financial support and policy: the government generally assists and support rural financial system.To support the development of agriculture, financial institutions will raise funds in a variety of ways. The most important prerequisite for a policy-oriented agricultural financial institution is to ensure the sources of its funding. According to the instance of financing in foreign countries, the way of raising funds are different because of the various situations in every country.To prevent the outflow of rural funds, it is necessary to restrict the recipients and their use of the loans. The three elements of agriculture refer to land, labor, and funds. As one of the three elements, the funds'outflow will not only severely affect the rural investment and funds accumulation, but also prevent economic development and reduce farmers'the income. Laws and regulations are the guarantee for the operation of the policy-oriented agricultural financial institution. Although the agricultural financial institutions support the development of agricultural economy, they are still protected and regulated by laws under the market economy.