Agricultural project financing documents

Project financing refers to the type of financing in which the lender provides loan agreement financing for a specific project, enjoys the right to demand repayment of the cash flow generated by the project, and takes the assets of the project as collateral. The following is an agricultural project financing model that I compiled for you. Welcome to read the reference!

Analysis on financing mode of small and medium-sized agricultural projects in China.

China has a large agricultural population, and small and medium-sized agricultural projects are the main body of agricultural economic development. However, the backward rural financing system hinders the financing of small and medium-sized agricultural projects. Connecting with the present situation of China's agricultural finance, this paper analyzes the application of the existing financing mode in small and medium-sized agricultural projects, advances some corresponding improvement measures, and probes into the feasibility of the new financing mode.

Keywords: securitization of financing mode of small and medium-sized agricultural projects

First, the status of agricultural financing

The sustainable development since the reform and opening up has brought about the increase of employment opportunities and income of farmers in cities, but the transfer of capital, talents and technology to cities has made rural development increasingly backward. The main reason is that there is no good investment and financing environment in rural areas, and the profitability of funds leads to the inability to enter agricultural investment. In addition, although the investment in agricultural production has high social benefits, the return period of investment is long and the initial investment is large, which makes the contradiction between supply and demand of agricultural funds increasingly prominent. At present, China's agricultural financing is mainly concentrated in two categories: financial support and commercial bank financial support. The main difficulties are as follows:

(1) financial support

In 20 15, China's GDP was 676.708 billion yuan, and the added value of the primary industry was 608.63 billion yuan, accounting for 9.0%[ 1]. In 20 15 years, the central government spent 2501200 million yuan in the national fiscal budget, of which the agriculture-related expenditure is shown in table 1[2].

The proportion of agricultural input in fiscal expenditure is much lower than that of primary industry in GDP. Government investment is more about the construction of large and medium-sized infrastructure and water conservancy facilities, or subsidies for circulation. Insufficient investment in agricultural variety improvement, social service system construction and food safety guarantee. There is not enough funds to support small and medium-sized agricultural projects.

(2) Commercial financial support

Agricultural projects themselves also have great risks, such as being greatly affected by climate disasters, long production cycle and slow withdrawal of funds. However, the transfer of land use rights is difficult, farmers lack sufficient loan collateral, and the agricultural insurance system is not perfect. Based on risk management, commercial banks lack the motivation to lend to small and medium-sized agricultural projects. At present, commercial banks are gradually merging their business outlets at the township level, which shows that they are gradually shrinking their services to agricultural finance.

Do rural credit cooperatives want it? Agriculture, countryside and farmers are the core of the enterprise. In the recent transition to commercial banks, it is impossible to compete for deposit resources with commercial banks such as postal savings in the short term, and at the same time broaden the loan direction. Most of the deposit funds are used for urban commercial loans, but the financial support for small and medium-sized agricultural projects is diluted.

Second, the financing scale of small and medium-sized agricultural projects

By the end of 2006, there were 2001.6000 households, 395,000 agricultural production and business units, 348.74 million agricultural employees, and cultivated land 1.2 1.7759 thousand hectares [3]. The per capita arable land of agricultural employees is only 5.24 mu. Due to the low household registration system in urban and rural areas and the overall quality of the agricultural population in China, farmers who work in cities will definitely retain the right to use agricultural land as a retreat when they get old. Therefore, it is difficult for our country to take the road of American-style large farm development in an all-round way, and it should be a small and medium-sized farm model of land transfer and lease. According to the "28 Law" (20% of the population accounts for 80% of the resources), the per capita cultivated land after intensification is about 20 mu, that is, the land scale of small and medium-sized agricultural projects is 20 mu. See Table 2 and Table 3 for the project income calculated by conventional agricultural products.

In addition to the annual income, the fund preparation for agricultural projects must also prepare a certain amount of working capital for emergencies, so the start-up capital should not be less than the annual income of the project. On this basis, the capital demand for small-scale agricultural projects is 500-65438+million, and that for medium-sized agricultural projects is 400-700 thousand.

Third, the analysis of the existing financing model.

At present, there are many financing modes in the financing market. According to the actual situation of China, the feasibility of financing small and medium-sized agricultural projects is evaluated.

Policy financing

China's policy financial institution is China Agricultural Development Bank. The loan targets of Agricultural Development Bank are China Grain Reserve Management Corporation and its directly affiliated warehouses, state-owned grain purchase and sale enterprises, state-owned and state-controlled grain enterprises, cotton enterprises of supply and marketing cooperatives with the qualifications and ability to specialize in cotton purchase, sales and import and export business approved by the relevant departments of the provincial government, improved cotton processing projects belonging to the agricultural sector, and other enterprises approved by the People's Bank of the State Council and China. Small and medium-sized agricultural projects of farmers are not eligible for loans. At the same time, the government's annual agricultural budget is mainly used for the basic investment of agricultural development, even if some funds are used for agricultural subsidies, it can not meet the financing of small and medium-sized agricultural projects.

To improve this situation, on the one hand, it is necessary to expand the loan business scope of the Agricultural Development Bank and issue corresponding project loans according to the agricultural project plan submitted by farmers. Or after farmers declare the output of agricultural products in the current year to the state-owned grain purchase and sale enterprises before production, the Agricultural Development Bank will issue farmers' loans in advance for production according to the price of the previous year. After the agricultural products are harvested, farmers will sell them to enterprises to repay their loans. On the other hand, the financial support of local governments for agriculture should be further supported in the fiscal budget, and part of the national tax of agricultural enterprises can be converted into local tax in terms of related taxes, which can be clearly designated to fund small and medium-sized agricultural projects.

(2) Commercial loans

Commercial bank loans need corresponding collateral. The amount of mortgage assets owned by farmers is generally small. Rural real estate cannot be used as collateral. The loan for medium-sized agricultural projects is nearly 500 thousand, so it is difficult for farmers to have equivalent collateral. At present, commercial loans are unpopular among farmers. The government can liberalize the circulation of agricultural land and rural homestead, so that farmers can use their own land, homestead and real estate as collateral for loans. This will greatly expand the agricultural financing market and reduce the financing difficulty of small and medium-sized agricultural projects.

(3) Private loans

At present, when farmers lack funds, they will first borrow money from relatives and friends. Because of mutual understanding and transparent information flow, the risk of borrowing loans is smaller. However, the amount of funds of 500,000 yuan is large, and it is difficult for ordinary farmers to raise funds completely through relatives and friends. Other private lending channels are more similar to usury in terms of the current private lending market. This kind of borrowing is extremely risky, and once the project fails, it will lead to a heavy debt burden.

equity financing

Equity financing means that shareholders of a company raise capital by transferring part of equity and introducing new shareholders. The new shareholders share the profits of the company, and the company does not need to repay the principal and interest. There are two financing methods: private offering and open market offering. Open market offering means that a company goes public in the stock market and issues shares to the public to raise funds. According to the requirements of China's securities law, the company's assets are 50 million. Therefore, the open market selling method is not suitable for financing small and medium-sized agricultural projects.

When private placement is applied to agricultural financing, firstly, farmers need to set up agricultural cooperatives or agricultural companies to attract investors to buy shares. Considering the poor mobility of agricultural cooperatives and agricultural companies, local governments can be established? Private financing service center? Responsible for equity registration, company project inspection and evaluation, financing intermediary and equity trading services. This will greatly reduce the difficulty of private financing.

Agricultural Project Financing Paper 2 Project Financing Risk Management

Summary of project financing and its risk management

The meaning of project financing has broad sense and narrow sense. Project financing in a broad sense refers to all fund-raising activities for a specific project. Narrow sense of project financing, according to the definition of American Accounting Standards Manual? Refers to the financial activities taken for projects that require large-scale funds. In principle, the borrower takes the funds owned by the project itself and its income as the source of repayment funds, and takes its project assets as the mortgage condition. The general credit ability of the project subject is usually not regarded as an important factor. ? This article refers to the latter. Project financing is a new financing method that appeared in the international financial market in 1970s. After 30 years' development, project financing is becoming more and more mature, and the operation mode and framework of the project are becoming more and more systematic and standardized.

Since the project financing mainly depends on the cash flow and assets of the project, rather than the credit of the project investors or sponsors, the lender's right of recourse against the borrower can only be limited to a certain stage or within a specified scope at most, that is, the so-called? Limited recourse? ; Moreover, the project has long financing time, large scale, many participants and complex structure, which is more risky than ordinary traditional loans. Reasonable risk allocation and strict management are the keys to the success of project financing. In the west, risk management is a necessary link in the implementation of project financing, and each financing project should carry out risk analysis, formulate a risk management plan and put it into practice.

China introduced project financing in the mid-1980s. Since the 1990s, project financing has been widely used in financing activities of large-scale engineering projects, especially infrastructure projects. The emergence of project financing has played a positive role in effectively utilizing foreign capital, mobilizing private capital to strengthen investment in infrastructure construction and improving the backward situation of infrastructure in China as soon as possible. However, due to the late start of project financing in China, it is still in the exploratory stage, and all kinds of subjective and objective conditions required for its standardized development are not complete. In addition, influenced by the traditional planned economy thinking, compared with western developed countries, the actual operation of project financing is imperfect and the risk management level is backward. Lack of systematic risk awareness and management means will become a serious obstacle to the further development of project financing, which will eventually lead to its difficulty in meeting the needs of China's rapid economic development and construction. Therefore, it is imperative to find and solve the problems existing in project financing risk management in order to promote the development of project financing in China.

Second, China's project financing risk management problems

(1) The system of laws and regulations is incomplete, and the legal basis of risk management is chaotic.

The implementation of project financing needs a perfect legal system as a guarantee, which is an objective condition for the development of project financing. The risk management of project financing is mainly to allocate project risks among participants through various contract documents and credit guarantee agreements. This process involves many interest groups such as government, enterprises and financial institutions. The financing structure system is complex and the implementation procedures are cumbersome. The behavior of all interest groups must be bound by a set of laws and regulations that are binding on all parties. If there are no or poor conditions in this respect, it will inevitably increase the investment risk and increase the difficulty of risk management.

Judging from the current situation in China, the direct basis for project financing mainly includes: Interim Provisions on Foreign Investment Concession Projects promulgated by the State Planning Commission, Notice on Relevant Issues Concerning Foreign Investment Absorption by BOT promulgated by the Ministry of Foreign Trade and Economic Cooperation, and Notice on Relevant Issues Concerning the Examination and Approval Management of Pilot Foreign Investment Concession Projects promulgated by the State Planning Commission, the former Ministry of Electric Power and the Ministry of Communications. These regulations come from different government functional departments, lack unity and even appear contradictions. On the one hand, these regulations are aimed at foreign-invested projects, and their legal status is not enough for foreign investors. On the other hand, there is no legal basis for domestic enterprises to participate in project financing.

(2) The underdeveloped financial market has restricted the realization of risk avoidance means.

For developing countries like China, absorbing overseas funds is the original intention and main financing channel of project financing. Project financing usually mainly uses foreign exchange for financing and RMB for income, so it is difficult for the project to achieve foreign exchange balance. Whether RMB can be converted into hard currency is a matter of great concern to foreign investors. On the one hand, China is a country with foreign exchange control, and the import and export of foreign exchange under capital account is strictly restricted. In this way, the non-convertibility of RMB undoubtedly increases the foreign exchange interest rate and exchange rate risk of foreign investors, and also increases the difficulty of risk management.

On the other hand, there is a large demand for project financing funds, and reasonable design of financing channels and financing methods is the premise of project success. Multi-channel financing is conducive to reducing the risk and cost of project financing. In project financing, all kinds of loans are undoubtedly the main way of project financing. In western developed countries, issuing stocks and bonds is also common. In our country, the restrictive policy of issuing stocks and bonds has strict regulations on issuers or issuers, which makes these financing methods difficult to realize. China's underdeveloped capital market makes the project financing channels blocked, which directly increases the financing risk of the project company; China's financial service market has not been fully opened, and there are few means to avoid foreign exchange interest rate and exchange rate risks by using financial instruments, which undoubtedly limits the reasonable avoidance of financing risks.

(C) the purpose of the examination and approval management is not standardized, increasing the risk of approval of financing projects.

Project financing is mostly used for infrastructure projects involving the national economy and people's livelihood, and the approval management of the host government is generally strict. Because the implementation of financing projects involves a wide range, many participating departments, and its approval procedures are complex, involving many different approval departments. The smooth implementation of the project requires all competent departments to follow unified regulations, otherwise the lack of connection between different competent departments may delay the project approval, thus increasing the risk of the project.

In China, due to the lack of basic laws on project financing, the relevant regulations of various ministries (as mentioned above) are neither unified nor authoritative, and it is difficult to cover all aspects of project financing, resulting in the policy of project approval management is not operational. From the actual situation, China's management of project financing basically refers to the existing foreign laws or regulations, and at the same time refers to some international practices. This situation can not meet the needs of such a complex system engineering as managing financing projects, and artificially increases the risk of approval of financing projects.

Third, the main countermeasures to promote the development of project financing risk management in China

(1) Improve the legislative level of project financing and improve relevant policies and regulations.

In view of the particularity and complexity of project financing, China should adopt the form of special legislation to unify some issues of project financing; Other issues involved in project financing are regulated by relevant supporting laws, with the special law of project financing as the core. The single-line method of project financing should pay attention to distinguishing project financing from other forms of investment, clearly stipulate the principles that project financing should follow and the procedural rules that should be followed in each link, and make special provisions for areas that are not stipulated or conflict in the current laws.

(2) Accelerate the reform of the financial system and further open the financial and insurance markets.

As a high-risk financing method, the degree of marketization in the financial field of the country where the project is located will directly affect the realization of risk management means such as project risk prediction and transfer avoidance. Developed financial markets and flexible financial instruments are the necessary conditions for the smooth implementation of project financing risk management. Therefore, China should vigorously develop commercial banks, establish and improve a multi-type and multi-level financial institution system, and formulate corresponding policies to broaden the business scope of commercial banks and encourage domestic commercial banks to participate in project financing. At the same time, gradually open the financial service market, create a variety of financial instruments, and avoid interest rate and exchange rate risks; Speed up the development of the insurance industry, and make it possible to improve the project financing guarantee mechanism; Implement special policies on foreign exchange management of project financing to solve the problem of foreign exchange balance of project financing.

(3) Give full play to the macro-management role of the government, establish specialized competent institutions and strengthen management.