In 2022, the country has put forward higher and more specific requirements for the rural revitalization strategy, and the vast number of rural areas have ushered in a once-in-a-lifetime development opportunity. Policies release dividend signals, which are opportunities for market entities, and policy dividends should be grasped. At the same time, you must also understand the green channels, tax incentives, policy subsidies, fund guidance, etc. for rural revitalization projects. In 2022, the country has put forward higher and more specific requirements for the rural revitalization strategy. The vast number of rural areas have ushered in a once-in-a-lifetime opportunity for development. .
Government investment, subsidies, tax incentives
The "Rural Revitalization Strategic Plan (2018-2022)" issued by the Central Committee of the Communist Party of China and the State Council requires increased financial support for rural revitalization. Continue to support "agriculture, rural areas and farmers" financial services through policy tools such as incentives, subsidies, and tax incentives, and guide more financial resources to support rural revitalization.
Tax incentives are an important factor in supporting urban renewal strategies. Data from the State Administration of Taxation show that the amount of tax incentives for the country's implementation of poverty alleviation has increased from 26.3 billion in 2015 to 102.2 billion in 2020, with an average annual growth of more than 30%. The State Administration of Taxation issued the "Guidelines on Preferential Tax Policies to Support Poverty Alleviation" on June 19, 2020, which include supporting infrastructure construction in poverty-stricken areas, promoting the development of agriculture-related industries, stimulating the vitality of entrepreneurship and employment in poverty-stricken areas, promoting the development of inclusive finance, and promoting " 110 preferential policies have been implemented to promote poverty alleviation in six aspects: old, young, border and poor ” areas, accelerating development and encouraging social forces to increase donations for poverty alleviation. In view of limited space, some tax benefits will be excerpted and displayed.
Tax concessions for infrastructure construction
1) Three exemptions and three halvings: corporate income tax on public infrastructure projects supported by the state, corporate income tax on investment and operation income from rural drinking water safety projects new projects, biogas comprehensive development and utilization enjoy corporate income tax .
2) Exemption from value-added tax: transfer of land use rights, transfer of contracted land, leasing of state-owned agricultural land to agricultural producers for agricultural production; self-produced agricultural products sold by agricultural producers; agricultural services; entrepreneurship of disabled people; financial institutions to Small loan interest income from farmers, small and micro enterprises and individual industrial and commercial households, etc.
3) Exemption from urban land use tax : land for water conservancy facilities, land directly used for agriculture, forestry, animal husbandry and fishery production, agricultural product wholesale markets, farmers' markets, etc.
4) Exemption from deed tax: construction of rural drinking water safety projects bears land use rights, rural collective economic organizations joint-stock cooperative system reform, rural collective economic organizations liquidation and capital verification, relocation poverty alleviation project implementation entities obtain construction land, rural land, House title confirmation, registration, etc.
Government investment and subsidies
It is estimated that rural revitalization requires at least trillions of investments. The national finance is the primary financial support for rural revitalization. So what fields does such a huge amount of funds involve? The "Key Points of Rural Industry Work in 2021" lists 12 agricultural projects that will become key national support targets. Some key government investment projects will be selected and displayed.
1) Agricultural industrialization joint project: focus on investment in agricultural industrial consortiums led by leading enterprises in the region, followed up by family farms and farmers' cooperatives, and participated by farmers, so that they can give full play to their respective advantages, achieve clear division of labor, complement each other's advantages, Sharing risks and sharing benefits.
2) Agricultural Industry Strong Town Project: Relying on the resource advantages of rural areas, we will focus on supporting the construction of a number of strong agricultural towns with good basic conditions, outstanding leading industries, and good driving effects with an output value of over 1 billion yuan. Currently, two batches have been identified in 2018 and 2019, and the third batch of industrial strong town projects from 2020 to 2021 is being applied for. The goal is to build 300 strong agricultural industry towns by 2021.
3) Agricultural primary, secondary and tertiary industry integrated development pilot area project: In 2021, the Ministry of Agriculture and Rural Affairs will identify a group of "rural primary, secondary and tertiary industry integrated development pilot areas", focusing on supporting and creating resource gathering areas and logistics nodes. Cultivate an industrial cluster that integrates "production, circulation, logistics, experience, branding, and e-commerce".
4) primary processing of agricultural products project: focus on supporting the construction subsidies for primary processing facilities of agricultural products, encourage and support farmer cooperatives and family farms to develop facilities such as preservation, storage, grading, packaging, etc., while supporting the development of grain flour, bean sprouts, and meat transformation. Various localities provide subsidies for primary product processing projects such as intestines, milk-to-cheese, vegetables-to-meal, and fruit-to-juice.
5) Rural Entrepreneurship and Innovation Project: Cultivate and identify a group of national rural innovation and entrepreneurship mentors, support local farmers to start their own businesses, guide young people to return to their hometowns to start their own businesses, and include the project for returning farmers to start their own businesses into the scope of one-time subsidies.
6) New Business Entity Cultivation Project: Select and promote the top 100 leading enterprises in the national agricultural industry, and cultivate a group of large-scale agricultural enterprise groups with bases, processing, and brands.
7) agricultural product processing park project: recommend and invest in the construction of a number of agricultural product processing parks with an output value of over 10 billion yuan, support the construction of international agricultural product processing parks in Zhumadian, Henan and Zhaodong, Heilongjiang, and guide a number of regional agricultural product processing parks.
8) Lighting project: In addition to the 12 agricultural projects proposed in the "Key Points of Rural Industry Work in 2021", in order to speed up the pace of rural revitalization, strengthen urban lighting, and enhance the image of the city, various regions have introduced "rural revitalization to bring light, brighten The "lighting project" that "warms people's hearts through chemical engineering" is also a highlight worthy of attention.
Chaozhou City in Guangdong Province, Wenchang City in Hainan Province, Loudi City in Hunan Province, Ji'an City in Jiangxi Province, etc. have issued notices on the construction of lighting projects, stipulating the scope of application, financial allocations, electricity subsidies, etc. of lighting projects. Taking Wenchang City in Hainan Province as an example, the municipal finance department is responsible for allocating subsidy funds for lighting facilities. Residential quarters and supporting facilities and other types of buildings subsidize 50% of electricity bills; enterprises invest in construction or public facilities entrusted by the government to manage enterprises subsidize 60% of electricity bills and 20% of maintenance fees; shopping malls, hotels and supporting facilities and office buildings and other business operations 30% subsidy for electricity bills for building lighting facilities.
The key points of rural revitalization industry work will help improve the modernization and informatization of my country's agricultural industry. With the promotion of policies, some industries will also usher in new development opportunities. Pay attention to key support areas for rural revitalization, understand policy subsidies, and seize opportunities!
Rural Revitalization Industry Fund
The No. 1 Central Document pointed out that fiscal investment should play a leading role, support the establishment of rural revitalization funds in a market-oriented manner, leverage the participation of financial capital and social forces, and deepen rural financial reform. Therefore, it is crucial to vigorously implement the rural revitalization strategy and the rural revitalization industry fund. Different from the poverty alleviation stage, rural revitalization actually puts more emphasis on the optimization of resource allocation. The development requirements and goals are also higher than those of poverty alleviation, and the regions and industries involved are wider.
The Rural Revitalization Fund is not limited to agriculture. The target group it points to is "industries suitable for local rural development." If poverty alleviation is more inclined to public utilities, with equity as the main goal, then the rural revitalization fund provides a market-oriented opportunity. In the rural revitalization fund, more emphasis is placed on the guiding role of the government. Government finance serves as an introduction to set up corresponding profit-sharing and fault-tolerance mechanisms. On the other hand, it also presets "firewalls" for possible risks to mobilize social capital participation. of positivity.
Rural Revitalization Fund operates in various ways, including but not limited to parent-child funds, equity direct investment, investment and loan parallelism, etc.
mother-child fund
has both a mother fund and a sub-fund. The sub-fund investment can be all from the mother fund, or the funding sources can be diversified.
Example 1: Zhangjiakou Green Development Fund of Funds entrusted Shuimu Capital as the trustee management institution, and publicly solicited the first batch of sub-fund management institutions from the public to jointly establish sub-funds. 80% of the total capital subscribed by the parent fund is invested in sub-funds registered in the area of Zhangjiakou City and comply with relevant regulations, and the remaining 20% is invested in sub-funds in the form of market-oriented investment.
Example 2: Guangzhou Zengcheng Rural Revitalization Fund: The Guangzhou Zengcheng Rural Revitalization Fund was established as early as 2018. As a pioneer, the total scale of the fund is 5 billion yuan, and the first phase raised 500 million yuan. It is funded by government-guided funds and social capital at a ratio of 1:1.5. It is jointly funded by the Zengcheng District People's Government and 49 private enterprises in Zengcheng District. It is mainly invested in projects related to rural revitalization industries, focusing on local rural revitalization projects in Zengcheng.
Example 3: Jiangsu Province has established two tens of billions of government funds, the Jiangsu Province Rural Revitalization Investment Fund and the Jiangsu Province Chemical Industry Structural Adjustment Investment Fund. The initial scale of the two funds is 10 billion yuan, and neither has an entity. The provincial government investment fund directly contributes to establish or participate in sub-funds to achieve investment operations, and promotes the participation of city and county funds and social capital at the sub-fund level. , play a guiding and leveraging role.
Direct equity investment
The Rural Revitalization Fund will make direct equity investment in companies with listing potential in accordance with the practice of the venture capital industry. In principle, the Rural Revitalization Fund does not become the largest shareholder and does not participate in the operation and management of enterprises.
Parallel Investment and Loan
For invested enterprises that meet the agricultural credit guarantee support policy, the Rural Revitalization Fund will cooperate with the province’s agricultural guarantee loans to issue agricultural guarantee loans while investing. Investment and loans will support the development of the enterprise in parallel.
Capital is the backbone of promoting industrial development. In recent years, large-scale national funds have been established for the mixed reform of state-owned enterprises, military-civilian integration, and manufacturing development, which have played a strong role in promoting the transformation and development of China's economy. The government should attach great importance to the rural revitalization fund, establish a trillion-level rural revitalization guidance fund, send a strong promotion signal to society and the market, and guide social capital to actively participate. Through the guidance of the National Rural Revitalization Fund, 3-5 times the social capital participation will be leveraged. National and local-level rural revitalization funds must adhere to the principles of "government guidance, market-oriented operations, scientific decision-making, and risk prevention" and should not take profit as the main purpose. On the other hand, the government should encourage marketization and social capital investment in rural revitalization.
Bank loan support
Finance is an important element of rural revitalization. In recent years, the central government has continued to increase support for rural medium- and long-term credit loans and lowered credit service thresholds and interest rates. The China Banking and Insurance Regulatory Commission issued the "Notice on the Banking and Insurance Industry Serving Rural Revitalization and Assisting Poverty Alleviation" in 2019 to assist rural revitalization from the following aspects:
1. Developmental and policy banks must increase their support for rural areas Provide medium- and long-term credit support for major revitalization areas and weak links, without increasing the hidden debt of local governments, give full play to the leading role of finance, do a good job in project review and control, conduct business in a market-oriented manner, and increase high standards in rural areas Medium and long-term credit support in fields such as farmland, transportation facilities, water conservancy facilities, power grids, communications, and logistics.
2. Expand the scope of collateral. We will launch pilot projects for mortgage loans on farmers’ housing property rights and collective commercial construction land use rights. Promote mortgage loans for agricultural production equipment, transportation tools, and factory buildings, and explore the mortgage of housing and live livestock and poultry, mortgage of breeding farms, pledge of business rights and ticket charging rights in rural scenic spots, pledge of deposit certificates, and pledge of accounts receivable. Loan and order financing.
3. Appropriately relax the loan terms and interest rates for deeply impoverished areas and special poor groups. The insurance premiums for fiscally subsidized agricultural insurance in deeply impoverished areas will be reduced by another 10-30% on the basis of the 20% reduction.
4. Improve loan services for special groups. Increase the allocation of student loans. For the elderly who have the ability to work, the age limit for loans for the elderly will be relaxed on the premise that the risks are controllable.
Although my country has proposed the rural revitalization strategy for a relatively short period of time, based on the importance of the rural revitalization strategy, many regions have conducted useful explorations in the implementation of the rural revitalization strategy.
Taking Guangzhou as an example, it has made its own explorations and achievements in local financial support for rural revitalization. In order to solve the imbalance of rural financial services, improve and enhance the level of "agriculture, rural areas and farmers" financial services, and support the implementation of rural revitalization in Guangzhou, the Guangzhou Municipal Local Financial Supervision and Administration Bureau issued the "Notice on the Implementation Opinions of the Financial Support Rural Revitalization Strategy" in 2019. Requirements:
1) Improve the modern rural financial service system, establish characteristic "agriculture, rural areas and farmers" financial services, support the layout of other commercial banks in rural areas, and expand the coverage of rural service outlets. Support Guangzhou Rural Commercial Bank in carrying out work such as the listing of A shares, and increase financial support for "agriculture, rural areas and farmers". Support rural banks in Guangzhou to increase their capital and shareholdings, and guide financial leasing companies to carry out financial leasing business for agricultural facilities.
2) Explore the re-lending model of "one credit grant, multiple disbursements", which can fully play the role of supporting agricultural re-lending, re-discount and other monetary policies.
3) Support high-quality agricultural enterprises to list stocks issued by overseas securities exchanges or go to the "New OTC Market" and the Guangdong Equity Exchange Center for financing. Relevant departments have established a database of agricultural-related reserve companies for listing and listing, and provided targeted guidance to key agricultural-related enterprises to accelerate the pace of restructuring and listing.
4) Support the development of characteristic towns, develop special financial products for characteristic towns, provide differentiated financial services, and promote tourism development and construction loans, tourism enterprise construction land use rights mortgage loans, and farmhouse operating loans, etc.
The country has put forward higher and more specific requirements for the rural revitalization strategy. The "Key Points of Rural Industry Work" released by the Ministry of Agriculture strives to enrich rural economic formats, build a modern rural industrial system, broaden farmers' income channels, and promote the integrated development of rural primary, secondary, and tertiary industries. For rural areas, a once-in-a-lifetime opportunity for development is ushered in. The policy releases dividend signals, which is an opportunity for market entities, and they should seize the policy dividends.
Learn about the green channels, tax incentives, policy subsidies, fund guidance, etc. for rural revitalization projects. The state and government should strengthen planning and top-level design, improve policy support, integrate resources and funds through multiple channels, and help rural revitalization!
Source: Sannong Project Information
