A Research On Financing Rent Of Agricultural Machinery

Agricultural mechanization can enhance productivity of rural laborforce. agricultural industrialization and urbanization cannot realize without the agricultural mechanization.At present, the developed countries have already formed respective agricultural mechanization system which suitable for their agricultural characteristics. the field work, the transportation, the selection,and the drying process on agricultural production has been mechanized even been automated.Agricultural mechanization can release more agricultural laborforce from farmland, which will help to accelerate the urbanization, contract the gap between the incomes in rural and urban areas,help to the harmonious society.Although peasants ' income have received grow greatly since Reform and Opening, but their total income is not enough to affrod farm machinery equipment. the rate of agricultural mechanization is still less than 40%,the average investment on farm machianery equipment has not reach 100 yuan. The small peasant household scale management has also restrained the agricultural mechanization.Their are 240 million farmers in our country, the averge cultivated land occupied by farmers less then 0.53 hectare. Under the condition that the agricultural management method is small, and the purchasing power was limited, if we want to use agricultural machenary, renting instead of purchasing maybe the best choice.Renting farm machinery equipment have already accepted by farmers, in countryside the appearance of specialized farmers and companies has obviously proved it. But the quantity and scale is quite few, and its distribute is seriously imbalanced, its scale are too small to provide enough service to farmers. these means that the farmers wants to buy more Machinery service, but there have nothing to buy. so, the agricultural mechanization depend on the supply quantity of farm machinery service.Development of renting on agricultural machinery must persist on marketization, the government cannot organize or establish renting company. But the government can formulate corresponding policy to encourage, guide and support agricultural machinery renting company to be established and development well.In specific region, agricultural production in aspects, assortment, geographical environment, meteorological hydrology, peasant household structure and so on are highly stable, this help the agricultural machinery renting company to earn stable service rents ,which generate stable stable rent flow.Financing rent is financing machinery instead of capital by the guarantee of caution money and stable inward flow. by financing rent agricultural mechinery renting company can occupy and control massive real assets. agricultural machinery provider transfer their right of use and obtain rents from lessee company. the lessee company provide machinery service to fanners, obtains the corresponding reward. Agricultural machinery rentign company can sign many contract with many manufacturers to control more agricultural equipments.Potential market on Agricultural machinery Renting is huge, financing renting can transfer this potential market to realistic market, which will do favor to promote agricultural mechanization, do favorto fuel economic growth.This article analyzed the feasibility and the necessity on agricultural machinery financing renting, illustrated its business process, introduced some methods to manage the risk, at the end of this paper, I proposed some suggestion to promote agricultural machinery financing renting.