Enterprises are the main force in the rise of seed industry innovation, but many breeding enterprises are faced with the shortage of funds caused by the long seed breeding process, large investment in research and development, and long capital turnover period, coupled with the lack of corresponding collateral, it is often difficult to "emergency" in the traditional way of loans, which has also become a problem restricting the development of seed enterprises.
In recent years, it has become more and more common for seed enterprises to pledge variety rights to banks for financing in order to revitalize funds. Xinjiang, Fujian, Henan, Sichuan, Chongqing, Hainan, Shandong, Yunnan and other places have examples, and industry insiders have also actively contributed ideas to accelerate the establishment of a pledge financing system for new plant variety rights.
How's that going? Let's take a look!
01
Variety pledge mortgage becomes a "trend"
The "mortgage" was granted a loan of up to 50 million yuan
01
For the first time in China, the pledge financing of new plant variety rights (agricultural seeds) obtained a credit line of 50 million yuan
In January 2021, in order to solve the problem of shortage of funds for spring ploughing production, the Xinjiang Autonomous Region Administration for Market Regulation helped enterprises use the "Jiushenghe" series of trademarks and 7 patents for combined pledge financing. Agricultural Bank of China Co., Ltd. Changji Branch took the initiative to contact the company, and after repeated evaluation and inspection, it was willing to give it a loan in the form of pledge of new plant variety rights of Jiushenghe seed industry.
After authoritative evaluation, Jiushenghe Seed Industry has obtained a credit line of 50 million yuan for 5 new varieties of corn seeds with high quality and high yield, and has successfully obtained a credit line of 50 million yuan in Changji Branch of Agricultural Bank of China. On January 8, the relevant persons in charge of Jiushenghe Seed Industry and Changji Branch of Agricultural Bank of China went to the Plant Variety Protection Office of the Ministry of Agriculture and Rural Affairs to jointly handle the registration of the pledge of new plant varieties, and the loan has been in place.
Jiushenghe Seed Industry New Plant Variety Right Pledge Financing is the first case in Xinjiang and the first case in the country of agricultural seed variety right pledge financing, which opens up a new channel for the financing of agricultural enterprises and provides reference for the financing of more and more outstanding agricultural enterprises in the country.
02
The country's first pledge loan for new varieties of flowers and plants, with two certificates of new varieties of flowers and plants as pledges, obtained a loan of 400,000 yuan
In June 2021, Sanming Sencai Ecological Agriculture Development Co., Ltd. obtained a loan of 400,000 yuan from Sanming Branch of the Postal Savings Bank with two certificates of new varieties of flowers and plants as pledges. This is the country's first pledge loan for new varieties of flower plants.
Sencai Ecological Agriculture Development Co., Ltd. is a company specializing in the cultivation, planting and sales of flowers, Chinese herbal medicine, through technology research and development, the company selected and bred "Shayang Jasper" and "Yaochi Moonlit Night" two flower varieties, obtained the national plant variety rights protection. After a detailed investigation and evaluation, the Sanming Branch of the Postal Savings Bank agreed to provide the loan in the form of a pledge of the right certificate of new varieties of flowers and plants, and jointly registered the pledge with the Office for the Protection of New Plant Varieties of the Ministry of Agriculture and Rural Affairs.
03
Henan Zhengzhou Airite "popcorn" corn variety pledge financing of 2 million yuan
Zhengzhou Airite Biotechnology Co., Ltd. introduced burst corn germplasm resources from North America and South America, developed and cultivated new varieties of burst corn in combination with modern breeding technology, and carried out large-scale experiments and promoted planting in Inner Mongolia, Xinjiang and other places.
On January 10, 2022, in order to solve the problem of R&D investment and capital for expanding production, after evaluation by relevant experts, Airite Company completed the pledge filing with the Plant Variety Protection Office of the Ministry of Agriculture and Rural Affairs with the right to the corn variety "Airite 501" as a pledge, and successfully obtained a loan line of 2 million yuan from Braim Trust Co., Ltd. This is the first pledge financing loan for plant variety rights completed by Henan.
04
With the income generated by the "Crop Variety Approval Certificate" as a pledge, Sichuan seed enterprises obtained a "Seed Industry Variety Right Pledge Loan" of 20 million yuan.
In February 2022, Agricultural Bank of China Mianyang Branch successfully issued a "seed variety right pledge loan" of 20 million yuan to Sichuan Guohao Seed Industry Co., Ltd. The financing model innovatively introduces the pledge of the income generated by the "Crop Variety Approval Certificate", registers and establishes a pledge in the movable property guarantee registration and publicity system of the Credit Information Center of the People's Bank of China, and issues pledge loans to seed enterprises, which effectively solves the problem that the value of seed products cannot be quantified due to the lack of connection between products and business cycles of seed enterprises.
Mianyang is one of the three "national hybrid rice seed production base cities", and the hybrid rice seed production area is stable at 15-180,000 mu all year round, accounting for about 15% of the country and about 40% of the province; Among the 9 national hybrid rice seed production bases in Sichuan Province recognized by the Ministry of Agriculture, Mianyang accounts for 4. Due to the general lack of effective collateral recognized by financial institutions, seed enterprises have difficulty in financing through bank loans. The country's first "seed industry variety right pledge loan" provided a replicable and easy-to-promote business example for supporting the city's backbone key seed industry enterprises.
05
Chongqing is implementing a pledge loan for the right to new plant varieties, and Zhongyi Industry has obtained the first loan of 3 million yuan
On March 17, 2022, Agricultural Bank of China Chongqing Branch issued a loan of 3 million yuan to Chongqing Zhongyi Industry Co., Ltd. It is reported that the loan will be used for the cultivation and innovation of new crop varieties, such as rapeseed varieties with ultra-high oil content, functional rice, special rice and high-yield and high-quality rice varieties.
Zhongyi Industry is the largest seed industry company in Chongqing, and has successively cultivated more than 50 new varieties of Q excellent series hybrid rice, corn and Qingyou series of ultra-high oil content (over 50%) rapeseed, including more than 10 hybrid rice varieties approved abroad, with a cumulative promotion area of more than 250 million mu, which has made important contributions to ensuring Chongqing's food security and seed industry development.
06
Henan seed variety right "mortgage" to obtain a loan of 3 million yuan
In September 2022, Henan Dacheng Seed Industry Co., Ltd. successfully obtained a pledge loan of 3 million yuan from Zhongyuan Bank with the pledge of new varieties such as Chengyu 668, Chengyu 828 and Chengyu 888.
Dacheng Seed Industry is controlled by Henan Jifeng Seed Industry Group Co., Ltd., is a corn, wheat, soybean, peanut and rape and other major crop seed breeding, production, processing, sales and technical services based on the integration of breeding, breeding and promotion of high-tech enterprises, currently has more than 300 acres of scientific research and test base, varieties covering Huanghuaihai, North East China and other major corn and wheat producing areas.
07
The loan approval was completed within a week, and the country's first 'corn inbred line' plant variety right pledge financing landed in Hainan
In November 2022, "NG7612", "NG7613", "NG7706", "NG7710", "NG7807" and other new plant variety rights were written in black and white into the loan contract signed by Xinrui Hengfeng (Hainan) Agricultural Technology Co., Ltd. and Bank of China Co., Ltd. Hainan Branch, marking the landing of the first pledge financing loan for new plant variety rights in Hainan Free Trade Port. After receiving the loan application materials from Xinrui Hengfeng from the bank, the loan approval was completed in only one week.
It is understood that this is the country's first 'corn inbred line' plant variety right pledge financing. As a new technology company focusing on the innovation and development of corn germplasm resources, Xinrui Hengfeng provides excellent germplasm for units and R&D institutions in the field of seed industry across the country, and has applied for new varieties of corn inbred plants in the past three years.
08
The "double pledge registration" risk control model handled a pledge loan of 1.1 million yuan for the right to new plant varieties for seed enterprises
In December 2022, China Everbright Bank Tianjin Branch innovated the collateral management model of "rights to new plant varieties", adopted the unified registration and publicity system of movable property financing of the People's Bank of China and the risk control model of "double pledge registration" of the system of the Agriculture and Rural Affairs Committee, and handled a pledge loan for the right to new plant varieties for a seed technology company in Tianjin, and successfully invested RMB 1.1 million in the loan.
According to reports, when it learned that breeding enterprises had financing needs, Everbright Bank Tianjin Branch conducted in-depth research in many aspects, tailored exclusive financial products to support agriculture, actively explored the feasibility of using the right to new plant varieties as collateral, and innovatively adopted the "double pledge registration" model to ensure the legal effect of the pledge target, while also enhancing the availability of collateral disposal, effectively improving the recognition of the right to new plant varieties as a valid pledge in the credit management of financial institutions, and accurately "drip irrigating" credit funds in a timely manner To customers in the field of agriculture.
09
Yunnan's first pledge loan for new plant variety rights was launched, and a timely loan of 5 million yuan made the company's cash flow "lively".
In December 2022, Yunnan Jinrui Seed Industry Co., Ltd. obtained a loan of 5 million yuan from Huaxia Bank Kunming Branch by pledging the rights of three new plant varieties. This is the first pledge loan for the right to a new plant variety in Yunnan Province.
September to November is the season for seed purchases. However, under the influence of a variety of factors, Jinrui Seed Industry encountered problems in capital turnover, and the person in charge of the company was so worried that he couldn't sleep.
After the staff of the Economic Development Branch of the Kunming Municipal Administration for Market Supervision and Administration and the Economic Development Branch of Huaxia Bank came to the enterprise for investigation and research, they proposed that they could use the pledge loan of the right to new plant varieties, which solved the urgent need for capital turnover. This timely loan of 5 million yuan has made Jinrui Seeds' cash flow "lively", not only has money to buy seeds from farmers, but also can continue to invest in research and development.
10
It took one day to issue a loan of 3 million yuan for the enterprise, and injected new momentum into the development of the enterprise with the financial "timely rain".
On July 4, 2023, Yanzhou Rural Commercial Bank issued a pledge loan of 3 million yuan for Shandong Yanfeng Seed Industry Co., Ltd. for the "right to new plant varieties".
It is understood that Shandong Yanfeng Seed Industry Co., Ltd. is a collection of seed scientific research, production, sales, technical services in one of the enterprises, the company has wheat and corn breeding base, currently has 2 new plant variety rights certificates. Since 2023, the company's working capital has also increased due to the expansion of grain storage and cultivation.
Just when the person in charge of the company was worried about the shortage of funds, the account manager of Yanzhou Rural Commercial Bank learned about the company's capital needs through door-to-door marketing, and immediately recommended the exclusive credit product of "pledge loan for new plant variety rights" for him. The account manager worked on the spot, and successfully issued a loan of 3 million yuan for the enterprise in only one day, which ran out of the acceleration of rural commercial loans, and injected new momentum into the development of the enterprise with financial "timely rain".
11
The pledge of new variety rights received a loan of 1.5 million yuan to solve the problem of insufficient funds in the promotion of new varieties
In January 2024, the Shaanxi Branch of the Agricultural Bank of China issued a loan of 1.5 million yuan to Shaanxi Yangling Guorui Agricultural Technology Co., Ltd. to pledge the rights of new plant varieties, marking the successful landing of the first loan pledged by the rights of new plant varieties in the financial system of Shaanxi Province.
▲The person in charge of the enterprise introduced tons of packaged seeds planted from the experimental base to the staff of the Agricultural Bank of China Photo/Zhang Shibo
Wang Xinhong, general manager of Shaanxi Yangling Guorui Agricultural Technology Co., Ltd., said that after the variety is approved, it needs financial support, and the Agricultural Bank of China has solved the urgent need for the enterprise through the pledge of variety rights. Wang Dong, president of the Yangling Demonstration Zone Branch of the Agricultural Bank of China, said that he would take the opportunity of the pledge loan for the variety rights of seed enterprises to further broaden the financing channels of seed enterprises and contribute financial strength to the revitalization of the seed industry.
12
Qingdao issued the first pledge loan for the right of new plant varieties, and granted a credit of 5 million yuan to the enterprise and successfully disbursed the loan
On May 3, 2024, Qingdao's first pledge loan for "new plant variety rights" was successfully disbursed in Pingdu, creating a new model for the development of financial services seed industry enterprises by "realizing" intellectual property rights.
Qingdao Huashi Seedling Co., Ltd. is a professional peanut seed enterprise integrating breeding, multiplication, promotion and service. As the peanut sowing season approaches, the processing machinery in the company's production workshop is running efficiently, and workers are selecting and packaging rice, where an average of nearly 20 tons of peanut seeds roll off the production line every day. Not long ago, the company was facing difficulties due to insufficient liquidity and significant capacity restrictions.
Agricultural Bank of China Pingdu City Branch staff door-to-door investigation and exchange learned that the enterprise has just obtained a new plant variety right patent, after in-depth analysis of the company's business situation, research and development strength and intellectual property rights, decided to tailor a credit scheme for the enterprise, and finally "Shihua No. 1" peanut new variety rights as collateral, for the enterprise credit of 5 million yuan and successfully loaned.
02
Continue to make efforts in three aspects
Accelerate the establishment of a pledge financing system for the right to new plant varieties
Accelerating the establishment of the variety right pledge financing system is an important measure to develop and improve intellectual property pledge financing, a major demand for solving the financing difficulties of seed industry enterprises and supporting the development of advantageous seed industry enterprises under the background of seed industry revitalization, and a realistic path to promote the rapid transfer and transformation of seed industry scientific and technological achievements and accelerate the construction of a seed industry power.
At present and for a period of time in the future, the demand for variety right pledge financing will be increasingly strong for expanding and strengthening mainland seed industry enterprises, but the existing laws and regulations, policies and systems and practical exploration are difficult to meet the growing development needs, and it is urgent to accelerate the establishment of a variety right pledge financing system.
There are still three major problems in speeding up the establishment of a variety right pledge financing system. First, there is a legal basis for the pledge of variety rights, but the supporting policies and system construction are not perfect. Second, the practice of variety right pledge has achieved initial results, but the difficulty in assessing the value of variety right is an important factor affecting the wide application of variety right pledge. Third, seed enterprises have a strong demand for variety right pledge financing, but there are still barriers to variety right pledge by financial institutions.
How to speed up the establishment of a pledge financing system for new plant variety rights?
1) Establish a special registration and management system for variety right pledge contracts. First, it is recommended to refer to the patent right pledge registration management system to establish a special variety right pledge contract registration management system. Second, it is recommended to formulate a unified national registration procedure and registration content, and reasonably formulate the charging standard, so as to facilitate the parties to carry out security registration, which can ultimately effectively reduce the pledge cost of the parties, improve the efficiency of pledge setting, promote the establishment of variety rights and pledges, and maintain the security of creditor's rights.
2) Establish a value evaluation system for variety rights. The first is to construct a value evaluation system for variety rights, which is determined by the impact of the intangibility, timeliness and regionality of variety rights on the value of variety rights and the interests of the pledgee. The second is to establish and improve the appraisal agency, cultivate a team of professional appraisal talents, and establish a dynamic evaluation mechanism for the value of variety rights. The third is to establish a dynamic value assessment mechanism. During the pledge of variety rights, when there is evidence to prove that the value of the pledged variety rights may change, the financial institution has the right to require the pledgor to evaluate the value of the variety rights.
3) Actively promote the construction of a pledge financing system for variety application rights. The right to apply for varieties and the right to varieties are both property rights, and their property content can be transferred, so there is still a dispute over whether the right to apply for varieties can be the subject of pledge rights for pledge financing. In order to maximize the superiority of the variety right protection system, broaden financing channels, and ensure the realization of creditor's rights, it is recommended to actively promote the construction of a pledge financing system for variety application rights, and clearly stipulate in laws or administrative regulations that variety application rights can be pledged for financing.