Analysis on the present situation of Agricultural Machinery Circulation Industry in China

The domestic agricultural machinery circulation industry has developed rapidly in the past decade. The total output value of the agricultural machinery industry has increased from 7.3 billion yuan in 2003 to 310 billion yuan in 2012, with an average annual compound growth rate of 17.1%. Through the analysis of the current situation of China's agricultural machinery circulation industry, it is learned that the current scale of agricultural machinery manufacturing in China has jumped to the second in the world, second only to the United States. With the increase of farmers' purchasing power, the reduction of rural labor force, the concept of family farm, etc., the agricultural machinery industry will continue to maintain a high growth rate, and the average annual demand growth rate of the industry will remain at 10-20% in the next five to ten years.

In 2014, with the spring breeze of agricultural modernization policy, the agricultural machinery circulation industry once again bathed in the warm sunshine, the basis of agricultural modernization is agricultural mechanization, the premise of agricultural mechanization is the benign, sustained and rapid development of agricultural machinery circulation industry.

In January this year, Xinhua News Agency issued the "opinions of the CPC Central Committee and the State Council on comprehensively deepening Rural Reform and speeding up Agricultural Modernization" (hereinafter referred to as "opinions"), clearly pointing out that we should increase expenditure on agriculture, rural areas and farmers, increase subsidies for the purchase of agricultural machinery, improve subsidy methods, and continue to promote the pilot project of subsidies for scrapping and updating agricultural machinery.

According to this interpretation of a number of people in the industry, the subsidy level for the purchase of agricultural machinery in 2014 will exceed 21.75 billion yuan in 2013, which is expected to reach 23 billion yuan, driving the market share of agricultural machinery to exceed 75 billion yuan.

In fact, the current development level of China's agricultural machinery industry lags far behind that of developed countries. In 2013, the level of comprehensive mechanization of farming and harvest in China was only 59%. The level of mechanization in the plain is estimated to be about 70%, reaching the intermediate stage of agricultural mechanization development, while the level of agricultural mechanization in hilly and mountainous areas is still less than 40% in some provinces. In Europe, the United States, Japan and other countries, the level of agricultural mechanization has reached 90%. Zhu Lihao, editor-in-chief of Agricultural Machinery quality and Supervision magazine, pointed out that the gap with developed countries means that there is still huge room for improvement in the development of agricultural mechanization in China. Agricultural machinery industry and agricultural machinery circulation industry as a sunrise industry.

The third Plenary session of the 18th CPC Central Committee examined and adopted the decision of the CPC Central Committee on a number of major issues of comprehensively deepening reform, pointing out that it is necessary to speed up the construction of a new agricultural management system and give farmers more property rights.

At the same time, the "New deal of Land Reform", which is highly hyped by the market, echoes with it. Since 2012, the new rural economy, represented by family farms and agricultural cooperatives, has sprung up all over the country. By the end of December 2013, there were 982400 farmers' cooperatives registered in accordance with the law, such as professional cooperation and joint-stock cooperation. It can be predicted that with the acceleration of land transfer, organized customers will become the mainstream customer group of agriculture in the future.

This makes the agricultural machinery market demand will have a fundamental change, and this change will greatly benefit the agricultural machinery circulation industry. The change is not limited to agricultural machinery products themselves-the rigid demand for "high-end, atmospheric, high-grade" new agricultural machinery products will gradually increase, and the upgrading speed of agricultural machinery products will also be accelerated. More importantly, customer demand will derive from the product itself to a more diversified service direction. For example, from farm planning and construction, from raising seedlings to ploughing, planting, harvesting and even drying and warehousing, distribution, etc., from machine maintenance to management, operation, maintenance, etc., organize the whole-process solutions that customers need. Such diversified demand has created a new opportunity for the development of leading enterprises with large-scale and chained agricultural machinery circulation.

The construction plan of 800 million mu of high-standard farmland is beneficial to the circulation of agricultural machinery.

In addition, the Central Rural work Conference held at the end of last year clearly stressed the need to ensure food and food security and promote agricultural modernization. Some experts have said that promoting land transfer and realizing large-scale agricultural operation are related to national food security and farmers' rights and interests, and will be the focus of agricultural reform in the next few years. China is a country with a large population, so it is more important to solve the food problem than Mount Tai, and the realization of agricultural modernization will be the key to solve the food problem.

The National General Plan for the Construction of High-standard farmland issued by the National Development and Reform Commission on December 9 last year has attracted the attention of relevant people in the agricultural machinery industry. "by 2020, we will build 800 million mu of high-standard farmland with a concentration of continuous plots and guaranteed harvest by drought and waterlogging," the plan said.

According to reports, high-standard farmland construction will help to improve the capacity of farmland drainage and irrigation, the application of agricultural science and technology and the level of agricultural mechanization. It will have an important impact on related industries. With the gradual implementation of high-standard farmland planning, agricultural machinery circulation enterprises, as a participating link, will obviously benefit.