Agricultural mortgage loans have an important role in the development of mortgage loan financing. Before the onset of industrial revolution, people used to opt for rural mortgage loans on a regular basis. However, after the industrial revolution and the development of real estate properties, the mortgage companies shifted their stress from a rural mortgage loan to a residential property mortgage or home mortgage loan. The downfall in agricultural growth has further pushed the market farther away from the agricultural mortgage loans.This situation has led the governmental economic policies to take serious steps for reviving agricultural mortgage finance. The efforts from both the governmental and private financial sectors have built new structure of agricultural loans, keeping in mind the changing demands of the new age farmers.A mortgage loan is a kind of loan that can provide you with a considerable amount of money by taking any property as the security of that loan. An agricultural mortgage loan is one which uses the borrower’s agricultural property as the collateral for the loan. This means, if after taking an agricultural mortgage loan you fail to pay it off, then the agricultural property that has been given as the security for the loan, can be seized by the lender.The agricultural mortgage loans can help you in both purchasing a new property and developing the existing one. The lenders offer this loan to buy new lands for farming, or to buy new machineries to improve the production rate of the current business. Few rural mortgage loans offered by the rural mortgage lenders provide a lump sum to start agricultural business with lower interest rates. This is done mainly with an aim to encourage people to invest in agricultural business and thus to strengthen the national agricultural growth. There are specialized agricultural mortgage lenders for this particular proposition.The interest rates offered by a lender can be of varied interest rates and of different term periods. The principal amount is generally decided through a property evaluation of the rural land by the lender. In most of these cases, any location with good commute flexibility plays a more important role than the total production value of the land or property. The mortgage interest rates can be both of fixed rate and variable rate. The repayment options also can be of different types; for example you can choose interest only mortgage loans to pay only the interest amount for initial period. The tenure period can be stretched from one year to 30 years.A rural mortgage loan is highly flexible and comes up with loan refinancing option. As you refinance a loan you take a new loan to avail more suitable terms and conditions than the previous loan. This applies in case of tenure period or interest rate or other rules and regulations. For example, if your current mortgage loan has a high interest rate, you can refinance mortgage loan to avail a lower interest rate. With a refinance loan you can also stretch up or shorten the tenure period of your existing agricultural mortgage loan. However it is always advisable to do a thorough research and opt for a suitable lender before choosing the best of the agricultural mortgage loans.
As a very important role of world economy, China has made a tremendous achievement of utilizing foreign investment since the reform and opening up. China’s agriculture began to utilize foreign investment in the end of 70’s, when the reform and opening up just started. Agriculture is one of the earliest industries to utilize foreign investments. The new government has been paying unprecedented attention to agriculture due to its strategic position in the development of economy in China. Then Documents about agriculture has been issued again by the authorities in 2005. Solving the problems facing agriculture, rural areas and farmers has been the most important task for the government. Therefore, under the background that more and more attention has been paid to agriculture, it has both theoretical and practical significance to study how to expand, introduce and utilize foreign-investment effectively and efficiently to promote agricultural modernization, industrialization and internationalization.This article is composed of four parts to discuss the central topic “Utilization of Foreign Investments in Agriculture of China”.1. The background, purpose, significance, content and methodology of this study are introduced and an overview of the past and current studies and researches is presented. Besides, the basic theories of agriculture utilizing foreign investments are summarized.2. The characteristics of agriculture utilizing foreign investments in China are summarized according to its development, status quo and problems existing in the developing process. Moreover, the model of FDI’s contribution to agriculture economic growth is set up to analyze relations between agricultural GDP and FDI in agriculture. Also, we sets up a multivariate regression model of FDI and its influence factors such as the level of agriculture economic development, human capital, the extent of agricultural internationalization and investment climate, etc. The quantitative analysis can provide the data support for government policy.3. Through introducing the international experiences and lessons of agriculture utilizing investment in developed countries (America and Korea) and in developing countries (Thailand, India, Brazil and Indonesia), some inspirations have been drawn for investment utilization in our agriculture.4. Based on the theoretical and empirical analysis of the status quo, problems and the influence factors of agriculture utilizing foreign investments, learning its international experiences and lessons, we comes up with some concluding remarks and policy suggestions as follows: agriculture in China should further strengthen the development and exploit market potential; improve agricultural investment climate and upgrade the superiority of introducing foreign capital; intensify high-quality foreign investments introduction and increase the utilizing efficiency; enhance the supervision and control of both domestic and foreign markets as well as establish and consummate rules and regulations.