Research On The Financial Support For Agricultural Enterprises

Faced with new requirements put forward by change and innovation of agricultural production in a new stage of rural economic development, in the 1990s, the scholars in our country have put forth "agricultural enterprises". This not only helps to further reform and improve the household contract system and realize the second leap of agricultural development, but also helps to realize agricultural modernization in our country. Agricultural enterprises can resolve the contradiction between small-scale production and the market economy, lengthen the chain of agricultural production, excavate potential of agricultural productivity, and speed up the process of getting rich among farmers. However, the practical experience in the development of agricultural enterprises in more than a decade shows that the shortage of funds was one of the important factors that might constraint the rapid development of agricultural enterprises.With the continuous development and improvement of current market economic system, agricultural development needs a lot of money, government investment alone is not enough. How to create a practical financial support for the development of agricultural enterprises will become an important issue. At present, the state has continuously intensified its efforts to reform the financial system. In order to safeguard their own interests and avoid financial risks, the majority of the loans of the existing agricultural development banks, agricultural banks, credit cooperatives and other rural financial institutions could only be invested in agricultural infrastructure construction and the main grain purchase of agricultural products instead of the initial capital for the operation of agricultural enterprises. So the informal interest or interest-free financial loans for agricultural production have become an important source of credit. However, the informal financial irregularities could affect the development of agricultural enterprises. At the same time, the agricultural insurance lacks development and direct financing met kinds of difficulties, which also increases the risk of agricultural enterprises. Therefore, the development of agricultural enterprise and rural financial service system need to be reformed and improved.This paper analyzes the characteristics of the existing rural finance and agricultural enterprises development and sums up several deficiencies of current financial support for agricultural enterprises in the following aspects: China's rural financial service system has to be reformed and improved, the rural credit funds hardly meet the requirements of the development of agricultural enterprises, agricultural capital market has not been established, direct financing meets kinds of difficulties, and there is the lack of a sound security system. Based on the experience of foreign financial support for agriculture, this paper argues that it is quite urgent to establish a complete and comprehensive system of financial support for agricultural enterprises. As to specific proposals, this paper puts forward several aspects as the followings: to deepen financial reform, to clarify the position and focus of financial support for agricultural enterprises, to build a new rural cooperative financial institutions—Bank of farmer co-operation, to cultivate agricultural capital markets, to deepen the agricultural enterprise management, to implement financial and institutional innovation and protection of loan guarantees, to improve preferential credit policies for agricultural enterprises.The introduction of the paper illustrates putting forward the problem of financial support for agricultural enterprises, literature review, research methods, technological route and research content. The second part of the paper sums up the basic theory of financial support for agricultural enterprises and the connotation and significance of agricultural enterprises. The third part concludes that financial support is an inevitable choice to meet the funding requirements in speeding up the development of agricultural enterprises through analyzing the funds demands of the development of agricultural enterprises, the input subject and current situation. The fourth part finds the existing problems and corresponding causes of the financial support for agricultural enterprises through analyzing the characteristics of agricultural enterprises and the rural financial system. The fifth part sums up foreign experience and its enlightenment on financial support for agricultural enterprises in China. Based on the content of the fifth part, the sixth part puts forward measures and recommendations on the composition, function, policy support, etc. of the financial support system for agricultural enterprises. The seventh part is the conclusion.