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Business / Policy Watch

China to finance new farming practices

(Xinhua) Updated: 2014-02-21 18:31

BEIJING - China will offer customized financial services to new farming practices to push agricultural modernization, China's central bank said on Friday.

Financial institutions should give more credit support to innovative farming entities such as family farms and agricultural cooperatives by adjusting loan rates, maturity length and collateral, according to a statement released by the People's Bank of China.

The move is designed to promote moderate-scale farming operations and modern agriculture by easing financing difficulty for farmers.

Loans' maturity length can be extended up to 10 years if farmers plant fruits, trees and other crops with long growth circles, the statement said.

Diversified and innovative financing choices will be offered to meet different farming business needs, with support focusing on production materials and machinery purchase, land contracts and other infrastructure development.

Qualified family farms may enjoy specially designed approaches in the inter-bank market to sell bonds to investors publicly or privately , the statement added.

Last December's central agricultural work conference and the No. 1 central document on agricultural development issued in early January both highlighted the promotion of new farming business models and the need to encourage diversified agriculture practices.

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