Modern agriculture is characterized by intensive production, scaled operation, and concentration of capital investment. Due to its advanced forms of production, expansion of scale, and increased labor costs, modern agriculture demands large investments to support production. Meanwhile, new operation entities nurtured in the agricultural modernization process, including professional farmers’ cooperatives, family farms, etc., call for innovative financial services and products that can meet the 3 needs of different production entities in various fields. With regards to the establishment and effectiveness of agricultural financial operation units, a sound institutional system and well-rounded operation monitoring mechanisms are urgently needed.
Proactive guidance and strong policy support for certain regulatory issues, such as rural land transfer and rights validation, collaterals recognition and innovation, government and private institution guarantee mechanisms, etc., are also crucial for the development of agricultural modernization and finance. A unified design and planning process is also needed for the construction of the rural credit system. In summary, to support agricultural modernization through financial instruments, modern finance needs to be combined with modern agricultural operation; and special attention must be paid to this connection and the supporting measures for modern agriculture and finance.