Analysis of Agricultural Machinery Purchase Subsidy Policy

The Ministry of Agriculture and the Ministry of Finance recently formulated and issued the "Guidelines for the Implementation of Agricultural Machinery Purchase Subsidy for 2013", which marked the official launch of the purchase subsidies for agricultural machinery in 2013. Relevant person in charge of the two ministries and commissions said that this year will be based on the implementation of subsidy fund settlement level decentralization, full price purchases by farmers, and the selection of some machine tools such as Pratt & Whitney to improve the subsidy operation mode of agricultural machinery purchase subsidies, and further increase the intensity of pilot work. . Also, this year the central government will increase the amount of subsidies for agricultural machinery purchases.

Since the beginning of last year, the Ministry of Agriculture has carried out trials on subsidizing the settlement of subsidy funds, purchasing full-price farmers, selecting some of the machine tools such as Pratt & Whitney, and improving the subsidy for agricultural machinery purchases in 17 provinces and cities nationwide. It is reported that this year the Ministry of Agriculture and the Ministry of Finance will further intensify the pilot work and encourage local governments to try the payment methods of “full-price purchase, county-level settlement, and direct subsidy to the card”. The provinces, autonomous regions, and municipalities that have not yet carried out the pilot project will be selected. In 2013, some cities and counties will be selected to carry out pilot projects; if the conditions are ripe, they can also be piloted within the province. According to industry insiders, the central government's financial subsidies for agricultural machinery purchases will further increase this year. The first batch of indicators this year is 7 billion yuan higher than the first batch of 13 billion in the same period of last year. Therefore, it can be estimated that the subsidy funds for the whole year will exceed 25 billion yuan.

This year, the scope of subsidies for the Central Government's financial funds is: 12 categories, 48 ​​subcategories, 175 items of equipment, such as farmland preparation machinery, planting and fertilizing machinery, and field management machinery. On this basis, other implements that can increase their own number within 30 categories within 12 categories will be included in the central funding subsidy. Among these types of farms, subsidies have been raised for large tractors, high-performance green fodder harvesters, and cotton pickers. In addition, this year the corn harvester will still be the focus of subsidies.

As far as subsidies are concerned, agricultural machinery production and sales companies are the focus. The continuous increase in subsidies for agricultural machinery has effectively increased the demand for agricultural machinery and provided continuous market demand for agricultural machinery production and operation enterprises. Benefiting policy support, large-scale tractors, corn harvesters and centrifugal pumps and other agricultural machinery and marketing companies are expected to obtain favorable results.