Suggestions on the Implementation of Agricultural PPP Have Been Introduced.

The Ministry of Finance and the Ministry of Agriculture have released the Opinions on Further Promoting the Implementation of Government and Social Capital Cooperation in Agriculture, and focused on guiding and encouraging social capital to participate in six key areas: agricultural green development, high standard farmland construction , modern agriculture industrial park, pastoral complex, agricultural products (9.000, 0.15, 1.69%) logistics and trading platform and "Internet +" modern agriculture, reported by Economic Information Daily.

The Suggestions put forward requires reasonably sharing the risk, ensuring an appropriate return for fair competition, strict debt management, information disclosure, and strict performance supervision, which include " encouraging farmers, professional cooperatives and other new agricultural management entities to participate in the PPP project", " ensuring the equal participation of various market players in the cooperation of agricultural PPP project, the elimination of local protectionism and all kinds of stealth threshold", and "forbidding disguised debt such as government repurchase arrangement and commitment to fixed return.”

In terms of the policy support, the implementation suggestions must be clear, the responsibility of the leadership must be improved, the way of capital investment must be optimized, the capital investment mechanism in the field of agricultural public services must be explored and innovated. We will also play the guiding role, broaden the financial supporting channels, give full play to China PPP funds and local PPP funds to exemplify more financial institutions, insurance funds to promote financing support for agricultural PPP projects and optimize the pricing mechanism. We will actively promote price reform in the field of the agricultural and rural public services to explore the establishment of Sewage Waste Disposal System for Farmers ,to strengthen the guarantee of Project land and take the need of agricultural PPP project into consideration in the long-term planning of local land use and give priority to provide effective land protection of the project-used land.

Experts believe that the PPP model is a long term project with low profits of public service attributes that government can not solely afford. And the agricultural industry construction happens to coincide with the characteristics of the PPP mode with huge market.

“The reform of financing system of the rural investment is the focus of The Three Agriculture-Related Issues, because the main entity of the current agricultural investment is finance. More social capital, financial capital investment must be invested in agriculture with the finance as the lever, which is also the policy direction of  our country. “

Security companies or insurance companies can be established through capital infusions by our government. If any risks exist after the investment of social capital , these companies can pay part of it. Therefore, banks, finance and other parties can be mobilized to attract more capital investment in agriculture. Said Li Guoxiang, the researcher of the Chinese Academy of Social Sciences Institute of Rural Development