The Research On Farm Credit Act Of USA

The construction of Rural Financial Legal System not only has a direct effect on the cultivation and development of rural finance, but also affects the economic development and social progress of rural areas. On this issue, our previous reform did not touch the nature of the problem and has been stuck in the “stop-gap” measures and executive-led mode. As a consequence, there exists a serious dislocation between Rural Financial Legal System and the objective law of economic development in rural areas as well as the current situation.To promote the healthy development of rural economy, Central Document No. 1 of 2015 continues to focus on the Issues of agriculture, farmer and rural area, and puts forward the idea of “actively promoting rural financial legislation” for the first time. In June 2014, NPC started the rural financial legislation research. At the same time, CIRC and other regulatory authorities of relevant departments began to carry out the legislative study of rural finance. Preparations for rural finance legislation were formally initiated.Considering the complexity of the rural financial legislation and the fact that the construction of system will affect the situation as a whole, it’s important for us to learn from foreign advanced experience as well as adjust the objective reality of the rural economy of our country. As we all know, the agricultural population of US accounted for less than 3% of the whole population, but American agriculture is well developed and has achieved a high degree of marketization as well as integration of urban and rural economy. From institutional dimension, the prosperity in American agriculture comes from the systematic and complete agricultural financial legal system that the US government has established. The federal Farm Credit Act is an important part of the system and is of great research value.Based on the translated version, this paper conducts a systematic introduction and evaluation of the Farm Credit Act, and then puts forward legislative proposals for rural finance laws. This paper is divided into five parts:First, evolution and system functions of the Farm Credit Act. This part introduces the establishment and adjustment of the farm credit system based on the revision background of the Act.Second, the legislative system of the Farm Credit Act. The Act is enacted in the form of law and is divided into eight chapters and 206 articles.Third, the main content of the Farm Credit Act. The Act covers one system and four kinds of mechanisms: farm credit banking system, farm credit operator legal system,farm credit insurance legal system,agricultural mortgage secondary market legal system and farm credit supervision legal system. With farm credit banking system as the center, these systems formed a comprehensive network to support the whole system from all sides.Fourth, the features and functions of Farm Credit Act. This part summarizes the features and functions of the Act from six aspects, and reveals the development of the US Farm Credit System by chart.Fifth, the enlightenment of the Farm Credit Act. Considering the current situation of our rural financial legislation and what has been mentioned above, the author make the following recommendations accordingly:In terms of legislative style, the National People’s Congress should enact a special law and make sure that the relevant content is prescribed by the same law; In terms of content, the author puts forward a number of specific measures for the rural policy financial legal system, the cooperative financial legal system and agricultural insurance respectively to improve our rural finance laws.