Research On Financing Of High Standard Farmland Project Based On REITs Model

People with enough food feel safe,a country with strong agriculture keeps steady.The issue of food is a matter of national health and livelihood,and food security is an important material basis to ensure national security.The construction of high-standard farmland is a project to protect our arable land,quantity and ecology,and is an important measure to turn "grain fields" into "good fields".It is a must for the rural rejuvenation of the countryside.The current construction of high-standard farmland in China has many problems that need to be solved,such as the lack of high-quality natural resource endowments and the increase in construction costs.Currently,the REITs model is being promoted in China and has achieved significant financing results in the fields of green ecology and environmental protection,transportation infrastructure,etc.,with good application prospects.Exploring the feasibility of applying the REITs model in the field of farmland infrastructure can provide a new theoretical basis for solving the problem of lack of funds and financing constraints in the construction of high-standard farmland.Drawing upon prior research findings and practical experiences of REITs both domestically and internationally,this analysis delves into REIT-related theories,typical financing approaches employed in domestic and foreign markets.Furthermore,this study explores the viability and potential for applying the REIT model to high-standard farmland projects,with a focus on the economic feasibility of such an approach illustrated by the Kunming High-Standard Farmland Project.The main conclusions drawn from the study are as follows:(1)Over the years,the construction of high-standard farmland projects has been a top priority for the government.However,transforming basic farmland into high-standard farmland has proven to be a challenging task,with limited government funding unable to meet the long-term capital demands required to achieve robust and stable crop yields in all weather conditions.As such,investigating the application of REITs models within highstandard farmland projects is necessary.(2)The REITs financing model for high-standard farmland projects has been shown to generate higher profits than traditional financing methods,with the internal rate of return(IRR)for such projects being higher than the minimum expectations of investors.Hence,issuing REITs is a feasible option,which can provide sustainable funding support for high-standard farmland projects and enhance their overall agricultural efficiency.(3)Taking the Kunming High-Standard Farmland Project as an example,two models were constructed based on land circulation: the High-Standard Farmland Project REITs model and the High-Standard Farmland Project PPP+REITs model.Additionally,prospects for future applications of REITs within the agricultural sector were also discussed.