A Research On Financial Support Of Modern Agriculture’s Development In Chengdu

The development of modern agriculture is not only an important foundation but also a basic way for the economic and social development of developing countries. In the process of modern agriculture’s development, the rational allocation and orderly flow of capital can greatly promote the development of modern agriculture. So, it needs to establish a long-term effective capital investment mechanism to push the building of modern agriculture. In 2003, the Chengdu government implemented the party’s spirit, began to promote the integrated development of urban and rural areas, and considered the development of modern agriculture as their primary task. Under this background, the development of modern agriculture in Chengdu made a series of successful experiences and models. One of these successful experiences is relying on strong financial support. In a word, it has important theoretical significance and practical significance to research the operation status and the existed problems of the financial support system during the process of modern agriculture development in Chengdu. And it is also important to explore how to improve the system of financial support. By doing this research and explore, it can promote the development of agricultural development in Chengdu, it can promote the coordinated development of urban and rural, it also can promote the development of agricultural development in western region.In order to increase investment in modern agriculture, Chengdu carried out some measures, such as innovative financing mechanisms, change the way by which the Government’s financial fund supports agriculture, establish an effective monitoring and evaluation mechanism. By doing these, it ensured the long-term capital supply and promoted the rapid development of modern agriculture in Chengdu. But through a comprehensive investigation on the operational status of modern agriculture in Chengdu and a comprehensive analysis of capital’s supply and demand, it found that the financial support system of modern agriculture in Chengdu still exist some problems. For example, disordered management functions, prominent financial repression, serious capital outflows, difficulties in agricultural loans, defects in guarantees system, single financing system, and insurance development lags behind and so on. This paper firstly introduces some theories, including classical theory of foreign agricultural development, agricultural development stage theory, the theory of modern agriculture and the related financial development theory, and then summarizes the experience and lessons of United States, Japan and India, finally concludes some enlightenment: pursue market-oriented, deepen industry, and increase financial efficiency and macro-control.The financial support system of Chengdu’s modern agriculture should include three parts:the policy-oriented agricultural finance, commercial agriculture finance and cooperative agricultural finance. The relationships among them are interrelated, restricted and complemented. The three parts have their own priorities and functions. Policy-oriented agricultural finance is dominant in the financial support system of modern agriculture, which focus on macro-control of agriculture development, protect and support the agricultural industry, support agriculture technology, ancillary support commercial agricultural finance and credit support for special agricultural products’acquisition etc. Commercial agricultural finance is an important basis of modern agriculture’s financial support system. On the basis of reasonable review, commercial agricultural finance can give strong support to the modern agricultural projects which have better efficiency. And with the help of policy-oriented agricultural finance, commercial agricultural finance can play a greater role. Cooperative agricultural finance is the main body of modern agriculture’s financial support system, which focuses the construction of modern agricultural planting and breeding bases, In addition, it also provide farmers and base construction with some small, scattered short-term financial, to make up the omissions and deficiencies of policy-oriented agriculture finance, and commercial agriculture finance.In a word, adequate capital is one of the core conditions of modern agriculture’s development. And establish a sound system of financial support is an important supporting condition for the development of modern agriculture in Chengdu. So, it is important for Chengdu to strengthen the institutional arrangements of modern agriculture’s financial support, to establish efficient investment and financing mechanisms, to establish a sound risk-sharing mechanism and to create venture capital funds. By doing these, it can ensure financial support for Chengdu’s modern agriculture and promote the development and growth of agricultural and rural economic. This paper explores the modern of how financial support for agricultural development in Chengdu, and also summarizes some experiences and lessons. It can provide a useful reference for other regions of China, especially for the western region.