Support for Private Financial Institutions in the Agricultural, Forestry and Fisheries Sectors

The AFFF Unit works to create an environment that encourages private financial institutions to actively provide financing to agricultural, forestry and fisheries businesses by providing information concerning risk assessments as well as by supporting financing and securitization.

Signing of Memoranda for Business Cooperation

Starting with the Kagoshima Bank in April 2004, the AFFF Unit has signed business cooperation memoranda with private financial institutions in order to support entry by private financial institutions into the market of lending to the agricultural, forestry and fisheries sectors. The support has included study sessions, joint operations and cooperative loans.

Financial Institutions under Business Cooperation with JFC (as of March 31, 2014)

Agricultural Credit Risk Information Service

Images of Scoring Results Obtained Using ACRIS

The Agricultural Credit Risk Information Service (ACRIS) is an agricultural scoring model designed by the AFFF Unit to facilitate the active entry by private financial institutions into the market of agricultural loans (a fee-based membership service).

The AFFF Unit positions ACRIS as a tool for stimulating agricultural lending, and is strengthening its business collaboration with ACRIS members such as financial institutions and tax accountants.

The accuracy of the model is examined annually, and improvements are made to reflect economic conditions and other factors if necessary.

Securitization Support

The AFFF Unit established a credit supplementation program (securitization support operation) to encourage private financial institutions to provide agricultural lending. This program has been in operation since October 2008. By using this program, private financial institutions can transfer credit risks worth up to 80% of the loan amounts or a maximum of 50 million yen to JFC.

As of the end of FY2013, a total of 82 financial institutions had signed a basic agreement with the AFFF Unit. Fifty of these financial institutions developed new loan products for farmers that incorporated credit supplementation under this program.

â–¼Financial Institutions under Basic Agreements with JFC (As of March 31, 2013)
  Banks Credit unions Credit cooperatives Total
Hokkaido 1 9 1 11
Tohoku 7 4 1 12
Kanto 2 2 1 5
Chubu 6 7 2 15
Kinki 5 4 0 9
Chugoku 2 4 0 6
Shikoku 5 2 0 7
Kyushu 9 8 0 17
Total 37 40 5 82
(Of these, institutions that developed new products) (27) (22) (1) (50)

Providing Investment Support to Agricultural Corporations

Since FY2002, the AFFF Unit has invested in an investment and consultation company which invest in agricultural corporations in order to support the capital adequacy of agricultural corporations which is the bearer of agricultural communities. From FY2014 the AFFF Unit will start to invest in Limited Partnerships (LPS) which has received the approval of the business plan from the Minister of Agriculture, Forestry and Fisheries.

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