Microcredit has helped vegetable farmers realize their "dream of a new house".
The Longpo Village in Jinjiang Town, Chengmai County of Hainan Province is well-known far and near as the "vegetable village". Unlike other towns, farmers here don't grow vegetables locally.
"Most of our farmers have contracted land 70 to 80 kilometers away in Ding'an County to grow vegetables," said Huang Lixu, a villager from Longpo Village, opening the shiny iron gate of his new house and inviting the reporter in. "Why do you grow vegetables in other places?" the reporter asked, feeling confused.
"It's all about going out now! Rural microcredit has helped us a lot," Huang Lixu explained that there was little land in Longpo Village, with each household having less than three mu on average. The efficiency of growing vegetables was not high, and income didn't increase. Since 2009, more than 20 rural microcredit officers have gone down to the villages to teach farmers about credit knowledge and provide them with the idea of "borrowing money to contract land." Initially, the villagers couldn't quite accept this method, but Huang Lixu was the first to step forward and be the "first to try", borrowing 20,000 yuan from the agricultural credit cooperative to contract 13 mu of land in Ding'an County for growing winter melons.
Soon, Huang Lixu tasted the benefits of large-scale planting. In 2009, the acquisition price of winter melons reached 1.2 yuan per kilogram, and after deducting costs, his 13 mu of winter melons netted him over 60,000 yuan. "In the past, I grew some peppers and long beans at home. Because of the lack of land, I could earn no more than 30,000 yuan a year, and after daily expenses, there was hardly any money left!"
With better returns from growing vegetables, Huang Lixu began to plan significant events for his family. "My lifelong dream has been to build a two-story small building, bright and spacious, which can protect against wind and rain," Huang Lixu said, living in his ancestral home for over 40 years, the house had become dilapidated. If it weren't for the money he earned from growing vegetables, he would still be living in the old house. In October 2011, Huang Lixu's family moved into their new house, and shortly after, their ancestral home collapsed in a heavy rainstorm.
"My new house cost 200,000 yuan, all of which were earned from growing vegetables these years, and I am most grateful for the good work done by rural microcredit," Huang Lixu smiled standing in the living room of his new house, which was over 30 square meters. "Without the government's good policies, my 300-square-meter two-story small building wouldn't even have a shadow yet!"
Microcredit officer He Naichang told reporters that what farmers like Huang Lixu lacked mainly was capital for development. Due to the lack of collateral and guarantees, farmers found it difficult to successfully borrow from regular commercial banks. The emergence of rural microcredit broke through the "iron bucket" of difficulties in farmer loans, truly facing "agriculture, rural areas, and farmers." Farmers only needed five households to jointly guarantee, and they could borrow between 20,000 to 50,000 yuan from the agricultural credit cooperative, with a simple and quick loan process. Huang Lixu applied for loans every year and had borrowed over 80,000 yuan so far, becoming the "leader" of microcredit in Longpo Village.
"The farmers are honest and hardworking, and we don't worry about their repayment issues," said He Naichang. Even if there are special circumstances where they cannot repay on time, farmers can pay the interest first, and the principal can be repaid later. "The agricultural credit cooperative has equipped agricultural experts in each city and county, specifically helping farmers produce scientifically. This way, farmers don't lack funds or technology, and they receive sincere service."
According to reports, by the end of December 2011, the balance of rural microloans in Hainan Province was 4.53 billion yuan, with a total of 5.98 billion yuan in microloans disbursed, benefiting 445,000 households.
Huang Lixu himself became wealthy but did not forget others. With his help, more than ten households in Longpo Village successfully applied for microloans, embarking on the road to wealth and building new houses. Before leaving, the reporter learned that Huang Lixu expressed that he would continue to cooperate with the credit officers to help more farmers understand microloans. "They don't need to worry; I'll guarantee it!" Huang Lixu laughed.