Support capital for farm economy

(Baonghean) - With timely support in terms of capital, the banking sector (especially the Bank for Agriculture and Rural Development system) has helped many farm economic models have favorable conditions to invest in production development, and strive to do business effectively...

Through capital from the banking sector, farm owners in Tan Ky have invested in economic development very effectively. Mr. Nguyen Trong Huong's family in Dong Tam hamlet, Nghia Hoan commune has a farm of 29.4 hectares, including 12.4 hectares of rubber, 5.2 hectares of forestry trees, 2 hectares of fruit trees and 5.6 hectares of ponds for raising fish and ducks. During the investment process, the bank always accompanies and supports capital in a timely manner. Or at the livestock farm model of Mr. Le Manh Hung in Nghia Dung commune, along with bank loans and his own capital, he has invested more than 1.5 billion VND to build the farm. On an area of ​​4.1 hectares, he raises super lean pigs, supplying the market with 250 tons of pork each year. Ms. Tran Thi Nga in Tan Phu commune invested more than 2.3 billion VND (of which her own capital is more than 1.7 billion VND) to build a concentrated livestock farm, annually selling 675 pigs... Tan Ky Bank for Agriculture and Rural Development prioritizes capital for agricultural development investment (accounting for 86%), especially for economic models of forest plantations, rubber plantations, and concentrated sugarcane plantations in key economic zones of the district such as in Tan Long, Tan Phu, Giai Xuan, Tan Xuan, Ky Son communes...

Farm economic model of Mr. Nguy Dinh Hoai's family in hamlet 3A, Nam Cuong commune (Nam Dan).

The economic model of gardens, hills and farms in Thanh Chuong has developed quite strongly and one of the important factors that positively impacts this movement is the support capital from the banking sector. The Bank for Agriculture and Rural Development, Thanh Chuong branch, plays a pioneering role in investing capital for farm economic models. Mr. Phan Dinh Lam's family in Hamlet 1, Hanh Lam Commune (Thanh Chuong) operates a farm economy on an area of ​​72 hectares. With such a large scale, the family's capital is only 300 million VND. Therefore, Mr. Lam's family applied for a loan from the Thanh Chuong Agricultural Bank and was supported with a loan of 500 million VND to invest in afforestation, tea planting and livestock development. From this capital, the family has the conditions to develop the economy, each year the family sells 76 - 100 tons of fresh tea buds, hundreds of tons of acacia... Thanks to effective business, the family has accumulated and proceeded to repay the bank. Mr. Lam said: "Because of the large-scale farm economy and high investment costs, we are in need of borrowing about 1 billion VND more with a longer loan term."

Mr. Hoang Thien Thuy, Director of the Thanh Chuong branch of the Agricultural Bank, said: “The models of garden and farm economy in Thanh Chuong have a great demand for loans. Based on the assessment and survey of the actual situation of each specific area and the farms with approval decisions of the district... the banking sector determines the investment capital needs for each model. With that approach, the District Agricultural Bank has resolved capital sources for 76 farms with outstanding loans of more than 7.6 billion VND, including 7 crop farms with outstanding loans of 200 million VND, 69 mixed livestock farms with outstanding loans of 7.3 billion VND...”. Thanks to timely capital supply, Thanh Chuong has many very effective business models such as: Mr. Nguyen Van Loi's family in Phuong Dinh hamlet, Dong Van commune received a loan of 2.9 billion VND from the bank to invest in building a comprehensive farm economic model, raising 5 boars, 103 sows, 850 pigs, building 3.5 hectares of ponds and tanks to raise fish and eels, with a total annual income of 4 - 5 billion VND. Or Mr. Tran Huu Tap's family in Suon hamlet, Hanh Lam Tea Enterprise, borrowed capital from the bank to invest in planting 42.5 hectares of tea and oranges, yielding more than 1 billion VND per year...

Through credit institutions, the banking system has actively supported capital for the development of farm economic models, in which the Agricultural Bank of Vietnam, Nghe An branch, has paid great attention and promptly prioritized capital for farm economic models. Mr. Phan Hau Toan, Deputy Head of Credit Department, Agricultural Bank of Vietnam, Nghe An branch, said: “Implementing Decree 55/2015/ND-CP and Circular 10/2015-TT-NHNN on credit policy for rural agricultural development, we have increased the loan level, expanded the lending subjects, and unsecured loans to create conditions for farm owners to easily access capital sources. At the same time, Agribank Vietnam issued Decision No. 14 dated January 9, 2015 on “Issuing loan products for households and individuals through joint groups”, so the Branch has promptly proposed appropriate and effective solutions to implement farm economic loans. Therefore, the total outstanding loan balance for farm economy as of August 31, 2015 was 36,221 million VND, an increase of 5,786 million VND compared to 2014, an increase of 19%, of which short-term outstanding loan balance was 23,274 million VND, accounting for 64.3% of the total outstanding loan balance for farm economy.

Although there have been positive results in supporting capital for farm economic models, in reality, there are still many households that have not accessed bank loans. The reason is that the number of farms in the province is quite large but the production scale is small, not meeting the criteria for determining farm economy according to Circular 27/2011/TT-BNNPTNT dated April 13, 2011 of the Ministry of Agriculture and Rural Development. In particular, spontaneous livestock farms do not have a specific production process, input costs such as breeding animals and feed often fluctuate, the output market is unstable, there is no connection in the product consumption stage, and traders often force down prices, so economic efficiency is not high. For farm owners who meet the criteria according to Circular 27/2011/TT-BNNPTNT dated April 13, 2011, the coordination of the chain between departments from production to product consumption is still spontaneous and individual. Many farms have not been granted certificates, land is rented for short terms, and lacks stability, causing difficulties in investing capital for long-term farm operations. Many farms are not eligible for bank loans and cannot take advantage of the loan guarantee mechanism according to the credit policy for agricultural and rural development of Decree 55/2015/ND-CP of the Prime Minister.

Currently, in Nghe An, there are more than 4,274 farms and family farms. The average investment capital of a farm economic model is 875 million VND, of which equity capital accounts for 59.6%, the rest is borrowed capital. Although there has been great support in terms of capital for the development of farm economic models, in reality, bank loans have not met the investment needs of the people, so it is necessary to have solutions for investing in loans suitable for this model.

Hoang Vinh