Research On The Development Of China’s Agricultural Financial Leasing Service

Modern agriculture is the socialization, commercialized agriculture runned by modern industrial equipment, armed with modern science and technology, managed by modern organization and management methods, is a competitive modern industry in the national economy. Agricultural business entities always have the problem of insufficient funds in agricultural activities due to lack of purchasing power and effective collateral, which has seriously affected the agricultural development. Finance lease because of its characteristic of "melting substance", in the process of servicing of agriculture, will not refuse to provide financing service due to current credit status of the agricultural business entities, for those agriculture with insufficient financial strength or agriculture-related business entities and small and micro enterprises, they are able to obtain the necessary equipment for agricultural production as long as they pay a certain rent to the financial leasing company, which solved the problem of insufficient funds. Therefore, financial leasing is a relatively ideal financing channel of agricultural business entities financing external financing sources. Practical experience at home and abroad showed that the finance lease has unique advantages of expanding rural based investment and promoting technological improvements in rural production, along with China’s agricultural production scale, specialized, intensive, market-oriented rapid development, new agricultural business entities urgent need to introduce financing, stimulating assets, updating equipment and changes in agricultural development.However, in our country there are still many constraints in the process of using finance leasing business to promote agricultural modernization. Partly because of its own drawbacks of smallholder economy, consumer attitudes and the level of agricultural mechanization of agriculture business entities are to be improved, which leading to the promotion of unfavorable; the other hand, the rural market economy system is not perfect, the policy of supporting agricultural lease financing service development is not perfect. Therefore, developing agriculture financing service and leasing business, understanding the advantages and necessity of financial leasing servicing modern agriculture well, develop and innovate agricultural finance lease model has great significance of accelerating agricultural modernization in China.At present, Chinese financial Leasing in agricultural field is still in primary stadge, the relevant theoretical research is not very rich. Based on this, this thesis will take the agricultural finance lease service as the research object, comprehensively understandingcurrent development status and problems of financing and leasing in agricultural field through literature studies, field surveys, data collection and comparative analysis to propose appropriate countermeasures.The framework of this paper is as follows:firstly, it has introduced the basic concepts of finance lease and appreciate business model of agricultural development, and came to the unique economic advantage of finance leasing being the special way of financing through comparative analysis from a macro point of view; then described the feasibility and advantages of financial leasing in China’s agriculturalmodernization, This paper consider that the development of financial leasing has an irreplaceable role in promoting the modernization of agriculture. With the implementation of the relevant land transfer policies and consistently appearance of new agricultural business entities, the demand for agricultural machinery has increased; finance lease will be the main way of new agriculture business entities to obtain agricultural machinery. Financial leasing has obvious advantages compared to bank credit and other financing methods, financial leasing do not need agricultural business entities to provide guarantee, which has effectively avoided the problem of insufficient guarantees in rural areas, and the start fund of lease financing is low, which makes agricultural business entities more easier to access financial services. Then find out the major factors of restricting agricultural development of China’s financial leasing service by Comparing the status of agricultural financial leasing development at home and aboard, At last, propose relatedopinions on solutions and policy recommendations based on above restricting factors. First, from the development experience of other countries, we can see the development of finance lease in agricultural field government can’t survive without the support of government, need to create a favorable policy and legal environment; second, agricultural finance leasing need to establish industry associations, improve the industry supporting system; Third, consider from the strength of the lessor---finance leasing companies, they need to be innovative on business and increase financing channels and establish an effective risk control system.This article research results to resolve the agricultural economy development of our country agriculture enterprises or farmers in the process of the financing bottleneck problem has certain practical significance. It embodies in:first,is helpful to improve the agricultural financial system in our country; second, is conducive to agriculture related financial institutions expand agricultural financial services business, enhance the financial service differentiation competition strength; third, is conducive to agricultural enterprises and farmers to find new sources of external funds, and to promote the development of agricultural economy.