Study On The Risk Control Of The Agricultural Value Chain Finance Of Wen Shi

Agricultural value chain finance closely links financial institutions,core enterprises,farmers and upstream and downstream business entities,and can greatly alleviate the problem of difficult and expensive financing in rural areas.The successful implementation of agricultural value chain finance will bring extensive economic and social benefits,effectively promote rural revitalization and contribute to the realization of common prosperity.Agricultural value chain finance needs to closely connect agricultural products,capital,information and services in the operation process,and this characteristic makes it different from traditional loan services in the way of risk control,showing more complexity and special features.In this thesis,the problems and risks in the operation of the value chain finance of Wen Shi company are explored and analyzed through the annual reports of Wen Shi company and its competitors,the record sheets of investors’ activities and the court contract dispute documents.Through the framework of risk causation analysis system to organize and summarize the materials,it is found that the agricultural value chain financial risks are mainly caused by the external environment and internal elements and changes in the relationship between internal elements,among which the risks caused by external environmental factors are mainly industrial policy risks,natural environment risks,competitors’ competition risks,etc.,and the risks caused by internal elements and changes in the relationship between internal elements mainly include operation management Risks arising from internal elements and changes in relationships between internal elements include operational management risks,credit risks of cooperative farmers,etc.These risks lead to direct loss of company assets,legal actions between the company and cooperative farmers or loss of cooperative farmers.To address these risk factors,this thesis proposes to strictly implement the epidemic prevention and control plan by paying attention to epidemic dynamics,establishing regular insurance management norms to diversify risks,increasing the application of information technology to improve operational management efficiency,strengthening social relationship building in the value chain to cope with farmers’ credit default,increasing the introduction of external financing channels and expanding the downstream value chain,promoting the use of land for small-scale farms,and controlling feeding costs to improve service level to cope with the risk by competing with farmers.