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Abstract

The necessity of the agricultural policy-based finance in terms of supporting the new village construction is analyzed: in the first place, the theoretical roots of agricultural policy- based finance supporting new village construction are “market failure” and “government intervention”; in the second place, the continual decline of agricultural and the “rural financial market failure” in recent years have become the objective evidence and historical mission for agricultural policy- based finance to support new village construction; in the third place, the combination of agricultural policy- based finance and new village construction is conducive to solving the “three agriculture” problems and facilitating the reform of new village construction. The feasibility of the support is analyzed: firstly, agricultural policy- based finance boasts the status and position of the “primary drive” in new village construction; secondly, the nation continuously deepens the reform of rural financial system and policy- based banks and strengthens the functions of Agricultural Development Bank, which provides policies for agricultural policy- based finance to support new village construction; thirdly, the 14 years’ reform and development of Agricultural Development Bank and the eleventh five year plan lay sound practical basis for the support of agricultural policy- based finance to new village construction. Based on the necessity and feasibility, the following six aspects are analyzed to fully display the function of the “primary drive” of agricultural policy-related finance to new village construction. Firstly, strengthening the credit and loan aid to grain and cotton and some other agricultural products in the circulation domain; secondly, strengthening the credit and loan aid to agricultural industrialization in processing field; thirdly, intensifying the credit and loan aid to agricultural comprehensive development, rural infrastructure construction, application and promotion of agricultural technology, agricultural production means and agricultural ecological construction; fourthly, intensifying the credit and loan aid to rural special group and regional development; fifthly, intensifying the credit and loan aid to agriculture and rural emergency response system and social security system; sixthly, strengthening the credit and loan aid to agriculture and the intermediary construction of rural financial services.

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