Fujian at Work: New loan policy in Gutian County helps farmers grow edible fungus

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One of the biggest challenges that Chinese farmers face is getting enough money to finance growing their crops. In Gutian county of Ningde, Fujian Province, the local government has launched a new rule to tackle farmers' concerns. As CGTN's Zhao Yunfei reports, the reform has liquidized farmer's fixed property.

An innovative method of loaning is in play in Gutian, Fujian Province, a county famous for tremellas, or edible fungus. Tremella planting is Gutian's major industry, 300 thousand people make a living by growing them. But a steep cost is involved.

GONG JIANFENG, DEPUTY MANAGER BANK OF CHINA, GUTIAN COUNTY BRANCH Through activating property in the experimental area, the farmers' financing channels are expanded. It further develops the industry and increases farmers' income.

Usually, farmers' houses and property operating rights on contracted rural land can't be used as collateral in a loan. But the Gutian local government overturned this recently, allowing farmers to use the two items when applying for loans.

CHEN ZEJI FARMER In the future, we plan to grow tremellas in a scientific way. My son is attending college in Beijing and he will help me build a planting base once he comes back.

To streamline the process, a cooperative was founded, helping farmers get loans from the bank, and playing the role of guarantor. The cooperative also helps farmers grow and sell their product in a scientific way.

XIE ANJI, MANAGER GUTIAN NONGFENG EDIBLE MUSHROOM COOPERATIVE Edible mushroom-growing is Gutian's industry. We use it to help the county with poverty relief.

ZHAO YUNFEI NINGDE In the past few years, 30,000 people in Ningde have risen above the poverty line. About 15 thousand more are expected to do so by the end of this year. The local government is prioritizing Gutian county, keeping watch on its tremella project. Zhao Yunfei, CGTN, Ningde, Fujian Province.