Agricultural Policy Bank Support For Popularizing Agricultural Science And Technology Research

In recent years, along with the rapid development of socialistic new countryside construction, especially the release of the outline of the National Program for Medium-and Long-Term Scientific and Technological Development (2006-2020)in 2005, more requirements are needed for accelerating the rural economic growth, ensuring the stable development of agriculture, and sustained increase of farmers’ income,. The promotion of agricultural science and technology is essential to achieving these development goals. Accelerating the transformation and industrialization of agricultural scientific and technological achievements is a fundamental measure for solving the issues of agriculture, country and peasantry (three rural issues) in China. However, an important factor that restricts the transformation and industrialization of agriculture scientific and technological achievements is the imperfect financial system and funding deficiency. Strengthening cooperation and communication between financial sector and technology sector is an effective way to solve the difficult problem. Agricultural Development Bank of China, the only bank implementing the national agricultural policy in China, has an obligation to better support the extension of agricultural science and technology. Since 2004, for 12 years the Chinese Central Government have enacted a series of official documents that all related to China’s three rural issues. Especially, Chinese Government supports that Agricultural Development Bank increases its lending for the extension of agriculture science and technology, according to its first policy document in 2012. These guidelines related to supporting agriculture development not only have presented new tasks for agricultural policy banks, but also provide a new opportunity for financial service in three rural issues.In this study, we discusse how agricultural policy bank support the extension of agricultural science and technology in China. By analysizing the literatures, we summarized the concepts of agricultural policy bank, agricultural science and technology, and other related concepts as well as the development process of agricultural policy bank, and its business model. By combining the theory with practice, we gathered these policies about the lending support of agricultural policy banks on agricultural science and technology. Through the empirical analysis of author’s work itself in practice, we analysized current situation and existing problem of agricultural policy bank during promoting agricultural science and technology. Finally, by using comparison analysis and inferences methods, we studied the experience from the agricultural policy financial institutions in China and abroad, which will provide reference for completing our policy in supporting the extension of agriculture science and technology. In conclusion, since 2006, the Agricultural Development Bank seted up the loan business of agricultural science and technology, along with the proposed construction of new countryside and the accelerated development of modern agriculture. Agricultural Bank of China’s policy gradually increase the strength of loan-support on agricultural science and technology, which played a positive effect on the transformation and industrialization of agriculture scientific and technological achievements. Agricultural policy bank should gradually improve the system in agricultural science and technology-related supporting, and further provide the service for the development of agricultural science and technology in China.