The Ministry of Agriculture announced on the 28th of March specific policies for the state to increase grain production for peasants to increase production. Among them, subsidies for the purchase of agricultural machinery will be further strengthened. This year's subsidies are expected to reach 20 billion yuan, an increase of 2.5 billion yuan over last year. Analysts pointed out that with the support of the agricultural machinery subsidy policy, the agricultural machinery industry has entered a period of rapid development.

This year, the country will focus on stabilizing food production, accelerating the progress of agricultural science and technology, making every effort to stabilize food production at more than 1,050 billion kilograms, and farmers’ income growth will remain at 7.5% or more. To support the increase of farmers' income from grain production, the Ministry of Agriculture will adopt a series of measures, including a direct subsidy policy for grain farmers, a comprehensive subsidy policy for agricultural resources, a fine subsidy policy, a subsidy policy for agricultural machinery purchase, and a policy for raising the minimum purchase price for wheat and rice.

It is worth noting that in recent years, the state has continued to increase support for agricultural machinery purchase subsidies, which was 15.5 billion in 2010, 17.5 billion in 2011, and increased to 20 billion in 2012.

The Ministry of Agriculture stated that the types of subsidies for machinery cover 12 categories, 46 subcategories and 180 items, and on this basis, 30 items can be added on their own. According to the regulations, the Central Finance Farm Machinery Purchase Subsidy implements uniform subsidy standards for the same type and the same grade of agricultural machinery within the province.

Specifically, the single-subsidy limit is 50,000 yuan, large-scale tractors of 100 horsepower or more, high-performance green fodder harvesters, large-scale no-tillage seeders, milking machines, large-scale combine harvesters, rice large-scale soaking and germination program-control equipment, and stand-alone dryer subsidies. The quota can be increased to 120,000 yuan; the sugarcane harvester, single tractor subsidy above 200 horsepower can be increased to 200,000 yuan, and the single cotton subsidy for large cotton pickers can be increased to 300,000 yuan.

It is reported that in order to support the 2012 spring plowing and cultivation, the central government's first target of 13 billion yuan for agricultural machinery purchase subsidy has been advanced to various places in September 2011.

With the support of agricultural machinery subsidy policies, the agricultural machinery industry entered a period of rapid development. In 2011, the total output value of the national agricultural machinery industry increased by 33.7% year-on-year. According to the “12th Five-Year Plan” agricultural machinery development plan, the total output value of China's agricultural machinery industry in 2015 will reach 400 billion yuan or more, and there is huge room for growth.

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