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Obstacles to the Mortgage Financing of Forest Rights and its Countermeasures

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  • Wei, Xin
  • Ge, Jinchun

Abstract

Current status of the mortgage financing of forest rights is introduced. Significance of the development of mortgage financing of rural forest rights is analyzed, indicating that the mortgage financing of rural forest rights is an inevitable trend of rural reform development, Mortgage financing of forest rights in rural China is an effective vector for the farmers' income increase project with financial support, explores the great potential of forest resources, promotes the coordinated development of forestry and financial services. Major obstacles for the mortgage financing of forest rights at present is pointed out. which are the high assessment fees. the complex mortgage valuation. the unsound element market of forestry, and the lack of risk protection mechanism. Countermeasures for the development of mortgage financing of forest rights is out forward. For instance, both government and Forestry Bureau should strengthen the circulation services, establish smooth evaluation mechanism, establish companies for rural assets platform, increase the interest subsidies for forest right mortgage and the risk compensation, strengthen the team construction and improve the service system.

Suggested Citation

  • Wei, Xin & Ge, Jinchun, 2011. "Obstacles to the Mortgage Financing of Forest Rights and its Countermeasures," Asian Agricultural Research, USA-China Science and Culture Media Corporation, vol. 3(05), pages 1-4, May.
    • Handle: RePEc:ags:asagre:117429
    DOI: 10.22004/ag.econ.117429
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    Cited by:

    1. Starfinger, Marcel, 2021. "Financing smallholder tree planting: Tree collateral & Thai ‘Tree Banks’ - Collateral 2.0?," Land Use Policy, Elsevier, vol. 111(C).

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    Keywords

    Agribusiness;

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