Research On The Policy Finance Service For Agriculture Industrialization

Agriculture is the basis of national economy. As well as having a large population, China is a large agricultural country, posting agriculture in an extensively important position. Representing the developing direction of agriculture, agricultural industrialization is an effective channel to transfer traditional agriculture to modern agriculture and to realize rural economic growth and peasant income increase in the new age. The development and expanding of the leading enterprise during the agricultural industrialization need the support of credit funds from bank. To better the financial service for these enterprises, a suitable method must be found to balance the contradiction of agricultural enterprise’s weak aspect and financial organization’s benefit. As the only agricultural policy financial institution, Agricultural Development Bank of China meets the desire of agriculture development. It should fully display its function roll to support the development of agricultural industrialization thoroughly and to be the main power of promoting the fast development of the leading enterprise and construction of new socialist countryside.This thesis includes five parts. The first part is introduction, which presents the research background and meaning, introduces the research literature at home and abroad briefly, specifies the research thoughts and methods. The second part defines the object of study and its theoretical foundation; specifies the general development condition and theoretical basis of agricultural policy finance and leading enterprises in agricultural industrialization as well as the economic theory of leading enterprise development referring to the agriculture policy finance service industry. The third part makes brief introduction to the system of policy finance supporting agriculture. The fourth part taking the agricultural big city Linyin, in Shandong province as example, analyzes the current institution and existing problem of the service provided by Agricultural Development Bank of China to the leading enterprise of agricultural industrialization. The fifth part gives some advice about the agriculture policy finance servicing the agricultural industrialization leading enterprise. Through the research, this thesis indicates there are still many problems existed in the policy finance servicing the agricultural industrialization, such as incomplete innovation, confused self-position, lacking long and stable funds resource with low cost, lacking perfect motivation system, etc. Therefore, government should define the position of Agricultural Development Bank of China and perfect the compensation mechanism; meanwhile, the Bank should strengthen its inner management, optimize the loan process, and establish the effective evaluation mechanisms to realize sustainable development.