How to Use Agricultural Machinery Policy Subsidy

The target of farm machinery subsidy should be mainly agricultural machinery households. The current mainstay of providing farm machinery services is specialized farm machinery households, including a large proportion of agricultural machinery, which is in line with the current level of rural productivity development. From a policy-oriented perspective, on the one hand, the current focus is no longer to solve the problem of farmers households for their own use, but to encourage specialized households to provide services; on the other hand, agricultural machinery service organizations should also be supported, but it is not the main body.
The funding standard for agricultural machinery subsidies should be about 30% of the price of the equipment. As the price of agricultural machinery is relatively high, if the amount and proportion of subsidies are too low, the enthusiasm of the farmers to purchase will not be mobilized; if the amount and proportion of subsidies are too high, the number of beneficiaries will be less, the demonstration effect will be reduced, and other disadvantages will be easily developed. . After researching and taking into account factors such as the country’s financial resources, its attractiveness to farmers, exemplary driving roles, and regional differences, a subsidy of 30% is a relatively appropriate proportion. This can be used as a guiding standard, and specific subsidy standards are determined by localities based on actual conditions.
Focus on subsidizing key machine types. The current subsidy should focus on large and medium-sized and high-performance agricultural implements, such as large and medium-sized tractors, deep-soil no-tillage machines, precision seeders, combine harvesters, rice transplanters, and straw comprehensive utilization machines. Of course, specific models can be determined based on the actual situation. We should draw lessons from the experiences of Jiangsu and Henan and focus on subsidizing one or two key agricultural implements that are urgently needed, most important, and matured in terms of agricultural production each year, and form a certain scale in 2-3 years to solve a major problem.
Subsidy methods implement new mechanisms. Summarize the experience of subsidies for agricultural machinery in recent years to form a whole set of new methods and mechanisms, such as unified competition screening and determination models, unified settlement payment subsidies, farmer spread purchase, benefit publicity, and purchase file network management. This new mechanism conforms to the direction and requirements of the socialist market economy, reflects the characteristics of the agricultural machinery industry, and can be used for reference in the implementation of other similar policies.

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