Research On Risk Management Of Policy-based Agricultural Credit Guarantee Business ——Take Sichuan L Company “Sichuan Pig Loan” Guarantee Business As An Example

China is a big country with agriculture as the foundation of agriculture is the foundation of China’s national economy,but agriculture is characterized by natural weakness,problems concerning "agriculture,rural areas and farmers" have always been prominent,and the capital continues to be in a state of insufficient effective supply.This kind of circumstance restrains agriculture,countryside and farmer to the benign,long-term,rapid direction development to a greater extent.Since 2015,the government has been committed to the Policy-based agricultural credit guarantee system.By providing guarantees to agricultural finance borrowers,the credit of borrowers has been enhanced by means of guarantees.On the other hand,it allows lenders such as banks to spread risk.The above measures aim to help "agriculture,rural areas and farmers" out of the "financing is less,financing is difficult,financing is expensive" situation,leading the social capital can be transferred to agriculture,rural areas and farmers.As a large province in pig breeding,Sichuan has ranked first in pig production for many years.According to the data in 2020,The number of live pigs in China reached 527 million,accounting for 53.84 percent of the total domestic livestock and poultry meat production.As the world’s largest pig producer,China accounts for more than 50% of the world’s total pig production.Pig production in Sichuan province has ranked first in China for many years.Pig breeding,as one of the important pillar industries of social economy in Sichuan Province,plays a crucial role in the economic development of Sichuan Province.At present,agricultural credit guarantee system has gradually become the key financial support for China’s agriculture to move forward steadily,so the risk management of its guarantee business is particularly important.But in recent years,due to the influence of many factors,the pork price fluctuates greatly,which brings great risks to farmers’ breeding.This paper mainly studies the risk management of policy-based agricultural credit guarantee business.Through the interview and investigation,it is found that Sichuan Company L,as a provincial-level policy-based agricultural credit guarantee company,is very representative among all provincial-level agricultural credit guarantee companies."Sichuan pig loan" is the main guarantee business in the pig breeding guarantee business of Sichuan Company L.This paper expounds the risk management of guarantee business of policy-based agricultural credit guarantee company by taking "Sichuan pig loan" guarantee business of L Company in Sichuan province as an example.First of all,through the establishment of China’s policy-based agricultural credit guarantee companies and the development of two perspectives,the necessity of the guarantee business risk management.Secondly,the author summarizes the possible problems in the risk management of policy-based agricultural credit guarantee business of L Company in Sichuan Province through reading a large number of literature and field visits.Then,with the concept of risk management process to design of guarantee business risk management evaluation indicators,to identify its modern breeding level,supply support capability,crisis response capacity,system construction,operation and management,debt paying ability and six indicators,using fuzzy comprehensive evaluation method to determine total "sichuan pig" loan guarantee business risks,and the influence of different risk factors,optimization measures are put forward from two dimensions of guarantee project and guarantee company.Finally,this paper summarizes the research conclusion that policy-based agricultural credit guarantee should not only strengthen the cooperation with external banks,governments and re-guarantee institutions,but also improve the internal business process and system standardization,and improve the risk supervision level of guarantee projects through internal and external linkage.This paper provides a reference model for risk management for other guarantee businesses related to agricultural production,breeding or operation involved in the agricultural credit guarantee system of L Company in Sichuan Province by studying the optimization of "Sichuan pig loan" guarantee business of L Company in Sichuan Province.On the other hand,with the continuous increase of China’s GDP,the research content of this paper can provide some ideas for the gradually established guarantee system and the continuous improvement of rural financial risk management system.