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Section 167 Small Loans

 Chapter 167 Small Loans

"The difference is huge." Wu Nanhai explained that there are actually many types of landlords. Most of the landlords we are familiar with are landlords who exploit the land through the tenant farming model - these landlords directly divide the land into small pieces and give it to tenants. According to China

In the traditional landlord-tenant relationship, once the land is tenanted, it is the tenant's business what to plant and how to plant it. As long as the tenant can pay the rent, the landlord has no right to interfere with the tenant farmer's production activities. Sometimes he even loses the right to change tenants.

Therefore, they were not interested in improving agricultural technology and focused mainly on how to deal with tenants and make them pay rent on time and in full.

"In comparison, landowners are a bit like modern agricultural capitalists. They hire long-term and short-term workers and pay wages. Some are even tenants themselves, so they have a strong need to obtain high profits from the land - because they cannot simply

To obtain profits by raising rents, they have to ask for more output from the land - their demand for agricultural technology is stronger."

"Tenant? If you are a tenant, how can you still be a landlord?"

"Haha, you didn't know that during the land reform there was a term called tenant-rich farmer. In fact, it is inappropriate to call this kind of person a landlord. They are professional land managers who usually have a large amount of capital or specialized technology.

Landowners directly lease large areas of land and make profits by planting high value-added cash crops.”

"That's right." Wan Lihui nodded, feeling a little ashamed, "I'm still a farmer -"

"Haha, the rural society you were born in is no longer like this." Wu Nanhai said, "The Guangdong, Fujian, Jiangsu and Zhejiang regions in this time and space are the era of the rise of commercial landlords, but they mainly plant cash crops.

There are very few commercial landowners who only grow grain. They are the ones we want to support."

"Operational landlords are very capitalist," Ye Yuming said. "They are representatives of the advanced productive forces of this time and space."

"So our agricultural policy is to support commercial landlords, protect owner-peasants, squeeze out tenant landlords, and gradually make them disappear or transform into commercial landlords."

"What about the tenants? If the tenant landlords are eliminated, the tenants will lose their living space. The executive committee does not intend to carry out land reform. How to solve the land problem of these people? Under the tenant system, at least they still have a way to survive. If the tenant landlords are eliminated

If they don’t do it, won’t they even have a hard time eating?”

"There is a lot of wasteland in Lingao. We distribute seeds and farm cattle to help them open up wasteland and organize them to build water conservancy..."

Wu De directly objected: "This great effort has only created a new group of small farmers in Lingao. We do not need to expand the grassroots farmers here - it is of no use to us."

"This is not bad. Small farmers will work hard to defend their land and homes."

"The working class will also be very desperate, and the working class has nothing. They will not think about going back to sow seeds in the spring and harvesting in the autumn." Wu De said jokingly, "Well, in fact, ordinary people do not have to have anything to defend their homeland.

Fifty acres of land can be cultivated - as long as this society is rich, stable and happy for you."

"As for absorbing excess labor, there are many solutions. The simplest solution is to be solved by industry." Wu De continued, "Then there is agriculture itself. We don't need farmers, what we need are agricultural workers. Except for a few crops, other crops

All are intensively cultivated on large areas of land."

Wen Desi coughed and was about to speak when he saw Li Quan from the farm holding a plate and coming in cautiously. This little girl, who had been taken in by Zhang Xingjiao from Goujiazhuang with her mother, had been raised on the farm for more than half a year.

She has become a very cute loli, wearing two black whips, wearing a clean thin silk shirt, and her big eyes are twinkling.

"Commander Wen, please have tea," Li Quan said with a sweet smile. She was young, but she was quite familiar with the main figures in the time travel group - these were all "big shots" who often appeared in the farm.

"Okay, thank you." Wen Desi picked up the porcelain tea cup. The little girl smiled and brought the tea cups to everyone one by one. It is probably rare to see such a cute little girl, and everyone's greedy eyes fell.

There was a little girl on her whose face turned red and she hurriedly retreated.

Wen Desi gave a cold "hum".

"This kid Li Quan is currently studying in a national school. She is very smart. Xiao Zishan wrote a letter of recommendation for her and plans to let her go to a military and political school..." Wu Nanhai looked around and summoned up the courage to whisper.

"Going to a military and political school? Too young!" Wen Desi was puzzled. He didn't understand what Wu Nanhai meant by this for a while.

"I won't be too young in a few years." Wu Nanhai's face turned a little red and he didn't seem to want to say this. At this time, Ye Yuming started to speak again, so he had to interrupt. Ye Yuming was now introducing the target.

Measures taken by small farmers and small landowners.

For this group, Tiandihui mainly promotes livestock planting technology and engages in contract farming, and the Agricultural Committee underwrites all the sales.

This kind of business is not simply about sending chickens and ducks directly to farmers, but a small loan business.

"I suggest leaving this matter to the Delong Grain Company," Ye Yuming said. "If Delong feels that the business is too amateurish, it can be delegated to the Agricultural Committee to handle it..."

"It's okay. Delong itself is a financial institution, and it is also its duty to engage in small loans." Yan Ming said, "This is better and easier to calculate."

He proposed that during the issuance process, grain circulation coupons should be issued directly, and the lender would use the grain circulation coupons to purchase a number of poultry and raise them back. The amount of this kind of loan is very small, and the value is only five to ten chickens.

Small loans.

Farmers buy chicks from Tiandi Association and raise them, then submit 20 eggs to Tiandi Association as the principal and interest of the chicks. Tiandi Association then purchases the chickens at the price of a number of circulation coupons for each egg. When the laying hens are old,

, and can be sold to food factories to make chicken products.

"We can jointly open small food processing factories with local large landowners. We provide the technology and they are responsible for the management. The downstream raw materials are controlled by the Tiandihui, and the upstream sales are controlled by the Ministry of Commerce. Even if the factory belongs to the large landowners, they are just

It’s just a processing factory, it can’t be bothered.”

Ye Yuming explained his plan in one breath.

"There is a process problem here," Wu Nanhai said. "The loan they received was a tradable voucher, and what they returned to the farm were eggs. But the farm cannot use eggs to repay the loan from the grain bank."

"I think let's forget it." Wen Desi said, "Let's not talk about the comparison between physical loans and monetary loans here. Have you ever seen poverty alleviation in poor areas? First, poverty alleviation funds are directly distributed, and farmers receive them directly.

All the money was spent. Later, it was changed to giving chickens, pigs, sheep, etc., and they were slaughtered and eaten within a few days. Then they were said to have died of illness. What do you want to do? Do you want to pursue the money? "Who?

There is no guarantee that farmers in this time and space will be more honest and trustworthy than farmers in another time and space.

"So instead of using it as a loan, it is better to use it as a futures model. First, provide high-quality varieties for free, and then sign a contract with the farmers to purchase them at a negotiated price and pay a certain deposit in advance. At least in this way, the poultry will not be eaten directly.

In addition, poultry breeding has certain risks. Once poultry gets sick, they will die in large numbers. It can easily cause farmers to go bankrupt because they cannot afford the repayments, causing resentment. This will affect the reputation of the public and the local social stability, so the breeding of livestock and poultry should be

Put it later, let’s spread the good crops first and then talk about it.”

"This can be said to be a micro-loan. I think if there are less than 10 chickens, it won't bankrupt people, right? If they all die and can't pay back, they can be sent to a labor camp to work for a month to pay off the debt." Ye Yuming

He said, "If you are still worried that it is inappropriate, let the employees' families do the breeding first. Besides, those given for free will be eaten by others and then die of illness."

"If the farmer feels that the benefits of completing the contract can be greater than simply eating the chicken and drinking the deposit, he will do it well." Wen Desi shrugged, "Of course, some people in long-term poverty areas will not think so.

Yes. If the people in Lingao are still relatively enterprising working people, contract farming should be able to be promoted - I am opposed to small loans mainly because of two concerns: First, the local people may not have the concept to borrow money to operate;

Second, loans are always easy to combine with things that have negative effects such as loan sharking. It is difficult to promote it."

"Mr. Wen, you are overthinking the concept of lending. Not only do rural loans in Lingao exist, but they also come in quite diverse forms." Yan Ming has conducted a survey and found that small-scale lending in local rural areas is quite common. This method is commonly used by farmers.

Fertilizers and farm tools were purchased to make ends meet during the lean years. Lenders were mainly made to local wealthy landowners, mainly in kind. The interest rates varied, with some local gentry earning less than one and a half cents per annum.

Clan mutual-aid loans also include usury loans with a monthly interest rate of 1 penny.

"Generally speaking, farmers still have a certain awareness of borrowing. If our loan interest rates are low, farmers will be willing to borrow money. If you want to further avoid risks, you can set a standard to evaluate customers and implement risk control." Yan Ming said.

He is very interested in small agricultural loans - after all, this will be the first loan business he has handled. Although the business is small, it has a beginning after all.

"If this is the case, we will not be able to increase the income of local farmers and win over the people. The poor people will get nothing..."

"We need to take into account both," Wen Desi said after careful consideration. "We will not issue loans to poor farmers who are really poor and have no money. Loans should be based on small farmers. The standards should be lowered, and the coverage should be wider, so as to benefit the public as much as possible.

"


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