Farmers in Gutian county benefit from loan reform

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Financing has been one of the major challenges faced by Chinese farmers when seeking further development. Gutian, a county of Ningde City in eastern China’s Fujian Province, addressed the concern with a pilot reform.

Since 2016, China carried out some pilot reform projects which overturn previous rules of not allowing farmers to use their contracted rural land use rights and property as collateral to get loans.

Gutian, which has a traditional industry of tremella planting, benefited from the pilot reform.

Many local families make a living on the white flower-like fungus. The reform liquidized farmer's fixed property to cover the high cost of planting.

“Through activating property in the experimental area, the farmers’ financing channels are expanded. The industry has made further development and farmers’ income increased,” said Gong Jianfeng, Deputy Manager of Bank of China’s Gutian County Branch.

To streamline the process, a cooperative was founded for farmers to get loans from the bank and being the guarantor. The cooperative also helped farmers increase their efficiency in planting and selling.

“Edible fungus-planting is Gutian’s major industry. We use it to help the county to lift itself out of poverty,” said Xie Anji, manager of Gutian Nongfeng Edible Mushroom Cooperative.

In the past several years, 30,000 people in Ningde have risen above the poverty line. About 15,000 more are expected to do so by the end of this year.