China Sets 2030 Plan to Fund Food Security and Rural Modernization

BEIJING, Sept 7 (Reuters) - China unveiled a plan on Monday to bolster funding for rural revitalisation, aiming by 2030 to establish a more sustainable and efficient investment system combining fiscal support, credit, insurance, bonds and private capital to strengthen food security and modernise rural areas.

The plan calls for agriculture and rural areas to receive priority in budget allocations, as well as increased compensation for major grain-producing regions, the agriculture ministry said in a statement.

It also allows local governments to use eligible proceeds from special and general bonds for rural infrastructure, industrial development and public-service projects.

Banks will be encouraged to step up lending to major grain- and seed-producing counties, with financing focused on grain production and supply security, rural industries, infrastructure and agricultural technology innovation.

Authorities will also promote loans backed by livestock, farm machinery, agricultural facilities and warehouse receipts.

China will also expand agricultural insurance, including full-cost and planting-income coverage for staple crops such as rice, wheat, corn and soybeans, and improve loan guarantees and risk-sharing mechanisms for agricultural borrowers.

The policy encourages private capital to participate through rural revitalisation funds and other market-based channels, while also supporting bond issuance, listings by eligible agricultural firms and infrastructure real estate investment trusts (REITs).

 It also calls for rural collectives to better utilise land, assets and resources, including through partnerships with businesses on renewable-energy projects.

The plan also calls for stronger oversight of rural investment projects and related funding.

(Reporting by Liz Lee and Beijing newsroom; Editing by Tom Hogue and Stephen Coates)