More than 1.5 billion yuan to support water-saving irrigation enterprises ushered in a good opportunity for development

According to the website of the Ministry of Finance, in 2014, the central government allocated 1.55 billion yuan for comprehensive agricultural development to support the construction of water-saving transformation projects in key medium-sized irrigation districts and improve the comprehensive production capacity of agriculture, especially grain.

Since July, Henan, Jilin, Liaoning and other places have suffered the worst drought in 63 years one after another. The analysis points out that under the background of the severe drought, the central government allocated 1.55 billion yuan to carry out water-saving transformation, which will play a positive role in improving the drought resistance of farmland, and will be directly beneficial to the listed companies of water-saving irrigation.

Realize irrigation "water supply on demand"

A reporter from the China Securities News previously found that the branch and hairy canals of many farmland were seriously silted up, even planted with corn and soybeans by farmers, irrigation facilities were weak, and water-saving irrigation facilities were scarce.

It is reported that the funds are mainly used for dredging of canals (ditches) and anti-seepage lining, improvement and renovation of trunk and branch canals (ditches), construction of modern irrigation district management systems, and so on, in order to strengthen the construction of irrigation and water conservancy infrastructure and provide water source protection for comprehensive agricultural development project areas.

In order to realize the organic combination of the modernization of key medium-sized irrigation areas with the construction of high-standard farmland for comprehensive agricultural development, and to create the core area of grain production in China, in 2014, agricultural comprehensive development selected one irrigation district in each of the four provinces (regions) of Jiangsu, Henan, Shaanxi and Ningxia, and launched the pilot work of synchronous planning and design of water-saving transformation and high-standard farmland construction in medium-sized irrigation areas of agricultural comprehensive development.

According to the requirements of modern irrigation area and high-standard farmland construction, using modern means to supply water according to crop water demand, realizing "on-demand water supply" of agricultural irrigation, fully reflecting the informationization, digitalization and intellectualization of water supply and management in irrigation area, exploring a feasible way for the modernization transformation of medium-sized irrigation area, and providing solid irrigation and drainage backbone engineering support and water source guarantee for agricultural comprehensive development of high-standard farmland construction.

Relevant listed companies seize the opportunity

Since the beginning of this year, the central government has issued a number of policies to promote the development of water-saving irrigation. In March this year, the Ministry of Water Resources, together with the National Development and Reform Commission and the Ministry of Finance, formally launched the implementation Plan of the National drought Relief Plan (2014-2016), with a total investment of 29.98 billion yuan from the central government, including 10 billion yuan in 2014. it will be used to support 25 provinces and cities included in the plan to implement the 2014 drought emergency water source project and improve the emergency guarantee capacity for drought resistance.

In August, the Ministry of Water Resources held a review meeting on the "National Modern Irrigation Development Plan". It is clear that by 2020, the effective irrigation area of farmland will reach 1 billion mu, and the area of water-saving irrigation projects will be increased by 300 million mu, including more than 150 million mu of high-efficiency and water-saving irrigation projects. the effective utilization coefficient of farmland irrigation water is more than 0.55. According to the relevant market estimates, the completion of the goals and tasks proposed in the plan is expected to attract more than 250 billion yuan of investment, which is beneficial to the regional water-saving irrigation pipe equipment manufacturers and engineers with technical and market advantages.

In the second half of the year, the "Water pollution Prevention and Control Action Plan" with a total investment of more than 2 trillion yuan will be fully implemented, and industry insiders believe that the water-saving irrigation industry will usher in a golden period of development.

With the increase of water conservancy investment, the relevant listed companies also seize the opportunity. Taking Dayu water saving as an example, the company creates an omni-directional integrated management and development model of "design + product + engineering + service", grasps the policy opportunity of land circulation and ecological agriculture in time, and explores the business model under the new agricultural opportunity.

In the future, with the further increase of national support for water-saving irrigation, listed companies of water-saving irrigation and water conservancy pipes, such as Dayu Water Saving, * ST Xinye, Yasheng Group, etc., will be the first to benefit.