1、 What is agricultural supply chain finance

Agricultural supply chain finance is a financial model that combines financial services with agricultural supply chain to provide financing, settlement, insurance, guarantee, leasing and other services for agricultural production, circulation, processing, sales and other links.

By optimizing the flow of funds and information, and reducing operating costs and risks, agricultural supply chain finance can promote the coordination and cooperation of the agricultural supply chain, improve efficiency and transparency, and thus help the development of rural economy.

Agricultural supply chain finance provides more opportunities and resources for agricultural related enterprises, and brings more benefits and benefits to the society.

This paper will discuss the characteristics, financing mode, problems and challenges of agricultural supply chain finance.

2、 Functions and characteristics of agricultural supply chain finance

zero one Upstream and downstream synergy

Agricultural supply chain finance can coordinate production, circulation, processing, sales and other links to promote cooperation and mutual benefit between supply and demand parties.

zero two Risk assurance

By providing financial services such as insurance and guarantee, agricultural supply chain finance can reduce the risks of agricultural enterprises and improve their payment ability and credit.

zero three Capital turnover

Agricultural supply chain finance can provide more flexible and sustainable financing services, accelerate the capital turnover of agricultural enterprises, and improve efficiency and income.

zero four Digital management

The agricultural supply chain finance uses information technology to comprehensively control the supply chain by means of digital management to improve management efficiency and transparency.

zero five sustainable development

Agricultural supply chain finance attaches importance to sustainable development. Through optimizing resource allocation and management, it can realize environmental protection and energy conservation of agricultural supply chain and promote sustainable development of rural economy.

III Financial financing mode of agricultural supply chain

01 Government led supply chain finance

Government led supply chain finance refers to government funding or providing guarantee to support agricultural enterprises and financial institutions to carry out agricultural supply chain finance.

This model focuses on supporting small and medium-sized enterprises and people in poor areas, helping them to carry out collective and individual business activities, and improving their financing and lending capabilities. Specific measures include government providing discount loans, guarantees, insurance, etc.

02 Core enterprise led supply chain finance

The supply chain finance of core agricultural enterprises refers to the cooperation between core enterprises and banks or guarantee institutions, which provides financing support for small and medium-sized enterprises by financing the receivables of suppliers or distributors as core assets.

At the same time, they can also directly provide financing services for enterprises in the supply chain by establishing their own online platforms or establishing strategic cooperation with third-party Internet platforms, thus bringing optimization and promotion to the development of the entire agricultural supply chain finance

zero three Big data Internet supply chain finance

Big data Internet supply chain finance refers to providing financing services for enterprises in the agricultural supply chain through the analysis of agricultural product information, supply chain data and market demand with the help of the Internet and big data technology.

The data supports the whole process of risk assessment, pricing and supervision in this model, helping institutions to achieve more accurate and efficient financing.

4、 Problems and challenges

For domestic agricultural supply chain finance, there are also the following major problems and challenges:

zero one Inadequate risk management

Due to the long agricultural industry chain and insufficient enterprise collaboration, risk management has become a public problem. The risk pricing of agricultural supply chain enterprises is still immature, unable to effectively manage risks, and lack of refined disassembly.

zero two Insufficient attention to capital market

At present, the attention of the capital market is far from meeting the needs of the agricultural industry, and financing is still difficult and expensive. At present, investors at home and abroad pay relatively little attention to agricultural supply chain finance.

zero three Weak internal operation system

Because many agricultural supply chain enterprises are small in scale, relatively backward in operation, and the internal operation system is not perfect, it is difficult to connect and finance with financial institutions, and it is also difficult to effectively manage and respond to risks.

zero four Low level of scientific and technological innovation

At present, the scientific and technological innovation level of China's agricultural supply chain finance is not high enough, and there is a lack of support in technology and software applications, which leads to the low degree of digitalization and intelligence of the agricultural supply chain, affecting its efficiency and accuracy.

zero five The policy and regulatory environment are not perfect

The policy, legal and regulatory environment needs to be further improved for the development of agricultural supply chain finance, including financing policies, credit enhancement policies, property rights protection policies, market supervision policies, etc.

In recent years, the development of domestic agricultural supply chain finance has shown a trend of rapid growth, but it is still in the primary stage as a whole, with many problems and shortcomings.

On the one hand, the development level and financing demand of agricultural enterprises are large, but the actual financing supply is limited, and the source of funds is single, which is difficult to meet the market demand.

On the other hand, due to the high transaction cost of supply chain, opaque information and other issues, many financial institutions lack in-depth understanding and investment in agricultural supply chain finance, resulting in low market efficiency.

In general, domestic agricultural supply chain finance still has shortcomings in information sharing, risk management, cooperation mechanism, etc. It needs further reform in policies and systems, improve market transparency, reduce transaction costs, and further promote the rapid development of agricultural supply chain finance.

5、 Dijiu Group

In order to help the upstream and downstream enterprises in the agricultural product supply chain develop healthily, Dijiu Group has set up a special fund, namely the Yi Chuang Fund, to help small and micro projects, entrepreneurial teams, scientific and technological products, cooperation projects, etc. in the agricultural product supply chain to obtain sufficient financial support at a lower cost.

Dijiu Group has rich agricultural industry resources and industry experience. The SAAS intelligent digital service platform developed by the Group itself, supported by scientific and technological means, digitises every port in the agricultural process to achieve digital management of the whole process.

At the same time, through the establishment of an asset database and a multi scenario, multi-dimensional risk control model, real-time monitoring and risk early warning can be achieved to solve the financial problems of difficult and expensive loans for agricultural production and operation entities, provide more targeted comprehensive financial services for farmers, and promote the healthy development of agricultural industry.