International Agriculture and Trade Outlook No. (WRS-0601) 22 pp

January 2006

New Directions in China's Agricultural Lending

China has substantially boosted lending to farmers and agribusinesses in recent years. The balance of loans to farmers doubled between 2001 and 2005. Loans for agribusinesses and rural infrastructure rose as well. Rural credit cooperatives and banks that lend to agriculture are being reformed and commercialized but agricultural lending is still largely policy-driven. The boost in farm lending is one of several policy initiatives to aid farmers.

Keywords: China, agricultural, loans, rural, finance, banks, credit cooperatives, investment, policy, farms, farmers, micro loans

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