Farm businesses warned of financing scams

The Ministry of Agriculture and Rural Affairs has warned agricultural businesses about scams involving individuals and institutions falsely claiming to be affiliated with the ministry to solicit fees for project financing.

Fraudsters have promised government funding covering all or most project costs, large low-interest loans with no repayment obligations, capital advances from State-owned enterprises and guaranteed purchases of all products, the ministry said.

Some scammers have also claimed they could secure project approvals through special channels in exchange for upfront fees. Others have fabricated application procedures and ministry inspections to make their schemes appear legitimate or sought to involve local governments in providing land or arranging advance funding.

The ministry clarified that its agricultural and rural infrastructure financing project database is a public service platform that provides policy information, project management services and financing connections. All services are free of charge to agricultural businesses, it said.

The ministry also stated that it has no programs or special funds bearing the names "national agricultural reinvestment special support loan" or "vertical AI shrimp farming special fund project".

Businesses seeking financing can contact local banks or rural credit cooperatives, or apply through the project database section of the ministry's official service platform.

The platform works with 21 banks nationwide, including the China Development Bank, the Agricultural Development Bank of China, the Export-Import Bank of China and major commercial lenders. Five systemically important city commercial banks, including Bank of Beijing, Bank of Ningbo and Bank of Shanghai, are also eligible to participate.

All agricultural lending products offered by participating banks are subject to strict application, approval and fund oversight procedures, the ministry said.

"There are no schemes offering exceptionally large loans with no eligibility requirements or repayment obligations," it said.

The ministry warned that such scams disrupt market order and harm agricultural businesses, urging them to remain vigilant, reject claims of special access to government funding and refrain from paying upfront fees in exchange for promised financing.

zhaoyimeng@chinadaily.com.cn