Research On Land Income Guarantee Loan In China

At present,there is a serious contradiction between supply and demand in rural areas in China.On the one hand,there are few types of financial products available and it is difficult to meet the financial needs of farmers for agricultural production.On the other hand,with the acceleration of the process of urbanization,there is a need for circulation of land,and the demand for funds is strong.However,the lack of collateral in the hands of farmers has hindered the speed of land circulation.Land income guarantee loan have eased this situation to some extent.Farmers will transfer part of their land contractual management rights to property rights financing,agricultural development limited liability company(hereinafter referred to as property right financing company)that can carry out agricultural operations.The property rights financing company subcontracts the land and the borrower manages and disposes the land.At the same time,it provides written commitments for joint and several liabilities to relevant financial institutions,and the borrower can obtain funds at the agreed interest rate.If the borrower is able to return the loan,the circulation contract between the property rights financing company and the farmer will be invalidated.If the borrower cannot repay the loan as agreed,the property rights financing company can subcontract the land contractual management right for a certain period of time,and use this to obtain funds.The repayment of loans owed by the borrower to financial institutions reduced the credit risk.After the contractor has expired,the new contractor will return the contractual management rights to the original contractor.Farmers still have one-third of their land as rations and will not face the risk of land loss.During subcontracting,a series of subsidies still belongs to farmers.Land income guarantee loan are piloted in Jilin Province and have been implemented in Shanxi,Hebei,and other provinces.It is scalable,but land-guaranteed loan models are not fixed,and there are some problems that need to be resolved.First,the property right financing company has default risk,and the property rights financing company is not fullymarketized at the current stage.At the same time,lack of professional management rights value and the assessment agency of the land's expected earnings will pose risks to the property rights financing company.Second,the direction of future development of property rights financing companies is difficult to determine.At present,financing companies are non-profit-making institutions established under the leadership of governments at all levels.They are non-profit-making,state-owned forms are in a dominant position,and they lack marketization.As a limited liability company,profitability is one of its operating principles,so the future direction of development of property rights financing companies remains to be studied.At present,scholars believe that there are two main directions for future development of property rights financing companies: one is the development of a micro-profitable model of limited liability companies;the other is the reform of the cooperative model,which allows farmers to truly participate in,centralize funds for a long period of time,and develop built-in funds.financial.Prior to this,the results of many scholars focused on the results and problems of the land income guarantee loan in Jilin Province.This paper has completed based on the following innovations in previous achievements.First,this article analyzes in depth the reasons and significance of the rural land rights in China from the "separation of the two rights" to the " separation of three powers".Second,this article compares and analyzes other methods of financing mortgages of land management rights,and draws on their respective advantages and disadvantages.It also conducts a comparative analysis of property rights financing companies and rural cooperatives,and discusses the future development prospects of property rights financing companies.The first chapter of this article is introduction.This chapter introduces the research direction and content of the article as a whole.Through the analysis of the research background and significance and the combing of existing literature,the research method and content are determined,and the innovation point that the article tries to achieve is determined.The second chapter is the theoretical overview of the land income guarantee loan.In order to facilitate the following research,this chapter reviews some basic concepts and theories,and concludes that it is necessary and feasible to develop a land income guarantee loan.The third chapter,the development history andproblems of land income guarantee loan,plays a role in the article.In the fourth chapter,land income guarantee loan is compared with other financing modes in rural areas.The fifth chapter is a case study of the land income guarantee loan model.This chapter takes the example of Lishu County of Jilin Province as an example to introduce the financing model,implementation process and detailed rules of the land income guarantee loan,analyze its achievements and existing deficiencies,and propose solutions.The sixth chapter proposes suggestions and countermeasures for different subjects.This chapter analyzes the role played by governments,financial institutions,and property rights financing companies in the land income guarantee loan financing model,and makes recommendations on their practices.