Agricultural giant since 1983

Chapter 399 Loan Process
The establishment of an insurance company mainly engaged in agricultural insurance business involves many policy issues. If you take this matter to the leader, Li Lei will not be able to find it. Think tanks conduct research and analysis, and then make decisions based on their analysis, so Li Lei simply went to Tong Lao and Du Lao, the two biggest agricultural research experts, and asked them to have a look first.

After meeting the two, they talked about Li Lei's recent actions before Li Lei could open his mouth, "You and Minsheng have done a good job with this breeding loan. The impact of bird flu on the breeding industry is really too great, and many of them are at the grassroots level. The students who did the survey all mentioned this point, saying that some small farms encountered bird flu and hard-working chickens, and no one would want them immediately, even if they were not infected with bird flu, no one would dare to buy them!"

"It's thanks to Huinong's increased purchases, otherwise they would have to go bankrupt! There are also some who really encountered problems and had to destroy all chickens and ducks. Many people borrowed money to raise them. If they didn't breed If you help them turn around with a loan, there is probably only one way to go bankrupt, and even more serious, you may commit suicide. You have done a great job!" The two old people have done rural research for decades, and they often take students with them. I went to the countryside to do field surveys, and I know how vulnerable these farmers are in the face of risks, so I appreciate everything Li Lei has done before, and these measures have saved many people.

"I came here this time to talk to you two about this matter. In my opinion, this small trick is not enough!" Li Lei took out the materials he had prepared from his bag, and briefly understood them. Said, "From the perspective of countries with relatively developed farming industries such as the United States, Australia, New Zealand, and the Netherlands, there are many ways to reduce the risks faced by farmers!"

"First of all, it is technical. Cultivating improved varieties with stronger disease resistance, developing more effective vaccines and veterinary drugs, and promoting more scientific breeding methods can all reduce the possibility of breeding animals infected with diseases. We, Huinong, have also been doing this. , and has reached the international advanced level in many fields such as laying hens, broiler chickens, and pork pigs!" Li Lei is also quite proud of this, and he has been in the breeding industry for 15 years. Although he has the advantage of foresight, he can do it. Getting to this point is not easy.

But we can’t be complacent. Now he has only solved the problem of pigs and chickens. There are also many important economic animals such as dairy cows, beef cows, milk sheep, mutton sheep, and sheep that need him to overcome difficulties!Therefore, Li Lei has established new breeding bases in Tiannan Province, NMG, XJ and other provinces suitable for breeding cattle and sheep, purchasing equipment and recruiting talents, hoping to solve these problems as soon as possible.

"Well, I know this. Huinong really invests a lot in research and development. If you want to realize agricultural modernization, someone must stand up and do a good job in scientific research and public relations. I have been emphasizing with the above that we must provide support for such enterprises. , especially financial, policy, and legal support. Subsidies can help you reduce R&D investment costs, and policy promotion can help you recover R&D expenditures earlier! Laws can guarantee your legitimate rights and interests. Now that the country’s finances are still relatively difficult, this There are not small shortcomings in both aspects, but it will definitely get better in the future!" The two old people also know the importance of these, so they are also doing their own efforts.

"I also believe that the situation will get better and better!" Li Lei nodded. After entering the new millennium, the amount of agricultural subsidies has indeed been increasing. Although there are various problems in the distribution process, these subsidies are indeed real. Helped a lot of people.

Then he went on to say, "In addition to technology, these countries also have supporting policies and laws, and even some overcorrections. For example, Monsanto can register genes as trademarks. Of course, this is very beneficial to monopoly companies. Maybe this is why they The reason for its success! Large agricultural groups in Europe and the United States spend huge sums of money every year to promote the passage of regulations and policies that are beneficial to them.”

"In addition, there are financial support. The financial system can provide agricultural enterprises or individuals with relatively convenient financing channels through loans, bonds, and listing, so that they can easily obtain the funds needed for development! Although there are There are also many requirements, but it is definitely much easier than farmers, farmers, and agricultural enterprises in our country!"

"Yes, especially now that the financial system is undergoing reforms, it is understandable to focus on profits, but because of this, a large number of township outlets have been abandoned, which has indeed caused the problem of grassroots loan difficulties!" As an expert, especially a national think tank, rashly commented on other The field seems a bit inappropriate, regardless of Mr. Du's seniority, it is too deep, and this matter does have a great impact on agriculture, so Mr. Du said it.

"So I made suggestions to the higher-ups, to expand the role of rural credit cooperatives, and to ensure that farmers have at least one basic financing channel." He also discovered these problems during the research process, and has made his own efforts!

"In addition, financial institutions can also reduce their initial investment by purchasing large-scale equipment and leasing it to enterprises, farms, and breeding farms, so that they can spend less money to do more business. Although the expenditure has increased, but The profit margin has gone up!" Without these services, it may take 100 million to build a breeding farm and earn 20 a year after hard work; but with these services, you can use 50 funds to start a 200 million business, and then Earning 30 yuan a year is not a slight increase in profit margins.

"Our Shifeng Agricultural Machinery Factory under Huinong is also conducting some similar pilot projects, but because of the lack of supporting financial services, there is no way to expand it in the short term!" Li Lei introduced that this model will also be extended to agriculture on a large scale in the future. In the field of machinery, construction and other fields, machinery manufacturers have achieved higher shipments, and users spend less money on equipment, which is a good thing for them.

“Loans, bonds, and the stock market can provide financial support for companies or individuals, while insurance companies can reduce their operating risks. Whether it’s farms, farms, or agricultural product processing companies, European and American insurance companies have relatively mature insurance businesses. Although it costs money to buy insurance, the corresponding risk is greatly reduced! If there is bird flu and all the animals in the farm are destroyed, they can also get money from the insurance company. Not only will they not go bankrupt, they will also be able to Continue to operate!" After talking about advanced experience in other fields for a long time, Li Lei finally mentioned insurance.

"The development of domestic agricultural insurance is indeed relatively slow." Mr. Du talked about several attempts after the founding of New China, "I remember that the earliest was in July 1950, the Tianjin Branch of PICC started livestock insurance, and it was closed in May 7; In 1953, wheat and rice harvest insurance was piloted, and it was closed in 5; in March 1951, PICC launched live pig insurance, but it was closed at the end of the year."

"Then agricultural insurance stagnated for a period of time until March 1980 after the reform and opening up. After the domestic insurance business resumed for the second time, PICC Tianjin Branch launched a variety of breeding and planting insurance, and implemented promotion incentives. The policy has achieved some results so far, but compared with the needs of the majority of farmers, it is still far from enough!"

"Xiao Li is right. Farmers are the hardest, the most tired, and the least resistant to risks. It would be really unfair to them if all the risks were to be borne by them! We will study the materials you brought. , and then find a few experts in banking and insurance, and go to the countryside with them to investigate, and try to sort out a suitable report as soon as possible and send it up." Although Tong Lao is very old, he still has not changed the need to do things before doing things. The habit of going deep into the front line to do research.

"Just tell me what cooperation you need, and I will provide full support! In fact, we have done some research work in this area before, and the main participants can accompany you there!" Li Lei said quickly, he came to find these two For that.

The two old men are indeed old experts who have been immersed in agricultural research for decades. In addition to the benefits, they also saw the risks of large-scale promotion of financial and insurance supporting services. "It is definitely a good thing to do this, but we must also guard against possible problems. Convenience means become a new means of squeezing farmers, and they should not be allowed to become loopholes that affect financial security!"

Risks will not disappear but will be transferred. Financial and insurance supporting services can indeed reduce risks for farmers, but at the same time transfer risks to the financial market. For example, insurance companies will transfer their own compensation risks to other financial institutions through reinsurance. Does this method sound familiar?This is how the subprime mortgage crisis in the United States came about, except that it was a real estate storm.

If a large-scale risk is encountered, it will cause a chain reaction. For example, Zhengbang Technology, a leading pig raising company in the future, has encountered similar problems.

In 2020, affected by the upward trend of the pig cycle, Zhengbang’s agricultural and animal husbandry business has an unprecedented improvement. The revenue of the year exceeded 500 billion yuan, and the net profit reached nearly 700 billion yuan. The stock price also rose accordingly. The market value was once close to [-] billion yuan. Changlin Yinsun's net worth soared, and he was once the richest man in Jiangxi.

Zhengbang Technology is obsessed with success and ignores that the pig cycle will also go down. They chose to expand aggressively and carried out two fixed increases in 2019 and 2021 respectively. The price is 2021 yuan, which is mainly used for 75 projects+ such as the construction of a planting and breeding combination base for 13.16 pig fattening farms in Zhanhua Zhengbang and supplementary working capital.

As a result, after entering 2021, the hog futures price index plummeted from 29226 points at the beginning of the year to 13485 points in early October of that year. Such market changes have put huge operating pressure on listed pig companies that have aggressively expanded their production capacity. Bear the brunt of it.

The stock price of Zhengbang Technology fell from about 2021 yuan per share at the beginning of 16.9 to 9.66 yuan at the end of the year. Among them, the previous cooperation model of paying according to the construction progress node has gradually made Zhengbang Group unable to bear it.

In order to alleviate the crisis, Zhengbang started from two aspects at the same time. On the one hand, it reached an agreement with the contractor, allowing the contractor to work with a loan, and Zhengbang will return the principal and interest after one year; Breeding loans, pay a deposit, otherwise they will not give them piglets, and even let their employees forge contracts to borrow breeding loans to supplement working capital, hoping that the market will improve and then turn around.

However, these methods did not overcome the turmoil, and instead caused more serious problems. The pigs raised by the surrogate households ran out of feed and could not be sold. Watching the pigs in the pigsty go crazy and kill each other, Zhengbang Technology has suffered a huge loss of more than 100 billion, and it is about to be delisted, and the boss is also on the list of restricted high consumption.

Li Lei is also very familiar with the issue of how large companies in later generations exploit loopholes. He described the methods used by Zhengbang Technology and other companies in the future. These contents are also included in the materials he submitted, and he even found several foreign companies For similar cases, I hope that the two experts will include these when submitting the report, and limit these illegal methods from the very beginning, so as to reduce the risks that front-line farmers may encounter.

"If these contents are handed in, you Huinong will suffer the most, don't you feel bad at all?" The two experts looked at each other, and then they both laughed; keeping these loopholes is very important to a big company like Huinong. It's good, they can transfer the risk to other people, but now there are no such good things.

"For us Huinong, the stability of the industry is more important. If the industry is stable, Huinong can make use of its technological advantages and scale advantages to make money. If the entire industry collapses, Huinong will not be spared; Lu Xun once I once said, "There is a skill in mischief, and it is also effective, but it is limited, so there has never been one who has achieved great things with it!" This is exactly what Lu Xun said, "We Huinong will not do the thing of losing watermelon and picking sesame seeds!"

"If all agriculture-related enterprises were like you, then farmers in our country would have a much better life!" The two experts sighed at the same time. It is simply too conscientious.

The two experts were very old, and they were tired after talking for so long, and Li Lei didn't want to bother them too much, so he took his leave first and left.

The next day, Li Lei went to Minsheng Bank to check again. The distribution of breeding loans was going well, and he was quite relieved that many farms were brought back from the brink of bankruptcy.

In the evening, I had a meal with several directors and asked them to introduce some insurance experts. Both banking and insurance belong to the financial industry, and they often jump around when they reach the top. I work in a bank today and an insurance company tomorrow. , so they knew a lot of experts, and they immediately made an appointment for Li Lei.

It's just that these experts are relatively busy, and they don't have time to come until after get off work, so after waking up, Li Lei went to the business offices of Minsheng and Xinhe Cooperation in the suburbs to see how they issued breeding loans.

(End of this chapter)