The next 12 years is a period of rapid development of China's agricultural machinery industry. The "Agricultural Equipment Industry Development Planning and Policy" has been finalized and put forward the development goal of China's agricultural machinery industry: By 2010, the total output value of the agricultural machinery manufacturing industry will have doubled on the basis of the "Tenth Five-Year Plan" period, reaching 200 billion RMB;
The next 12 years is a period of rapid development of China's agricultural machinery industry. The "Agricultural Equipment Industry Development Planning and Policy" has been finalized and put forward the development goal of China's agricultural machinery industry: By 2010, the total output value of the agricultural machinery manufacturing industry will have doubled on the basis of the "Tenth Five-Year Plan" period, reaching 200 billion RMB; By 2015, the product level and manufacturing level of major products will approach the level of internationally renowned companies. The total value of the agricultural machinery industry will reach 250 billion yuan, which is 25% higher than that of 2010; by 2020, it will enter the ranks of the world’s strongest agricultural machinery manufacturers, and the total industrial value. It will increase by 50% on the basis of 2010, reaching 300 billion yuan.
The Ministry of Agriculture predicts that from now until 2020, it will be an intermediate stage for the development of China's agricultural mechanization. We expect that the level of China's agricultural mechanization will increase from the current 45% to about 70%, and the average annual growth rate will need to reach 2.08%, which is higher than the previous average annual growth rate. Therefore, from now till 2020, China's agricultural machinery industry is in a period of golden opportunity for development, the pace of development will be further accelerated, the quality of development will continue to increase, and the scope of development will continue to expand.
First, subsidies for agricultural machinery will continue to increase. The agricultural machinery purchase subsidy policy is based on the "Agriculture Mechanization Promotion Law" and the Central No. 1 Document. It is a long-term policy, not a short-term one. Therefore, the purchase subsidies for agricultural machinery will continue for a long time (English and French). Countries such as the United States, Japan, and the United States have achieved agricultural mechanization in the 1940s and 1960s. However, they still provide subsidies for farmers. Moreover, the subsidies for the purchase of agricultural machinery in China will also become more and more significant, and the areas for beneficiaries will become wider and wider, and the varieties of agricultural machinery covered by subsidies will become more and more comprehensive. The continued increase in subsidies for agricultural machinery will enable farmers to receive more and more benefits, and increase their demand for agricultural machinery products.
Second, the gradual increase in farmers' income has solved the problem of the source of funds for agricultural machinery purchases. The "Decision of the Central Committee of the Communist Party of China on Promoting Rural Reform and Development on Several Major Issues" passed by the Third Plenary Session of the 17th CPC Central Committee puts forward that by 2020, the per capita net income of farmers is more than doubled in 2008, which means that farmers will be pure in the next 12 years. The average annual increase in income must remain above 6%. The gradual increase in peasant income has guaranteed the purchase of agricultural machinery.
Finally, the inherent needs of agricultural modernization. Through years of subsidy policy implementation, the level of China's agricultural mechanization has greatly improved, and the overall rate of mechanization of cultivated crops has increased at an annual rate of about 1.5 percentage points, reaching 43.8% in the first half of this year. The % goal is expected to be achieved one year ahead of schedule. However, compared with nearly 100% of the mechanized rate in agricultural developed countries such as the United States, South Korea and Japan, we still have a large gap.
At present, there are few listed agricultural machinery companies. One stock market has Yueda Investment, and h shares have one stock. Similar to the performance of the industry, the profitability of listed companies in agricultural machinery is generally low. Although there are broad prospects for the development of the industry in the future, there are no good investment opportunities for agricultural machinery listed companies.
The next 12 years is a period of rapid development of China's agricultural machinery industry. The "Agricultural Equipment Industry Development Planning and Policy" has been finalized and put forward the development goal of China's agricultural machinery industry: By 2010, the total output value of the agricultural machinery manufacturing industry will have doubled on the basis of the "Tenth Five-Year Plan" period, reaching 200 billion RMB; By 2015, the product level and manufacturing level of major products will approach the level of internationally renowned companies. The total value of the agricultural machinery industry will reach 250 billion yuan, which is 25% higher than that of 2010; by 2020, it will enter the ranks of the world’s strongest agricultural machinery manufacturers, and the total industrial value. It will increase by 50% on the basis of 2010, reaching 300 billion yuan.
The Ministry of Agriculture predicts that from now until 2020, it will be an intermediate stage for the development of China's agricultural mechanization. We expect that the level of China's agricultural mechanization will increase from the current 45% to about 70%, and the average annual growth rate will need to reach 2.08%, which is higher than the previous average annual growth rate. Therefore, from now till 2020, China's agricultural machinery industry is in a period of golden opportunity for development, the pace of development will be further accelerated, the quality of development will continue to increase, and the scope of development will continue to expand.
First, subsidies for agricultural machinery will continue to increase. The agricultural machinery purchase subsidy policy is based on the "Agriculture Mechanization Promotion Law" and the Central No. 1 Document. It is a long-term policy, not a short-term one. Therefore, the purchase subsidies for agricultural machinery will continue for a long time (English and French). Countries such as the United States, Japan, and the United States have achieved agricultural mechanization in the 1940s and 1960s. However, they still provide subsidies for farmers. Moreover, the subsidies for the purchase of agricultural machinery in China will also become more and more significant, and the areas for beneficiaries will become wider and wider, and the varieties of agricultural machinery covered by subsidies will become more and more comprehensive. The continued increase in subsidies for agricultural machinery will enable farmers to receive more and more benefits, and increase their demand for agricultural machinery products.
Second, the gradual increase in farmers' income has solved the problem of the source of funds for agricultural machinery purchases. The "Decision of the Central Committee of the Communist Party of China on Promoting Rural Reform and Development on Several Major Issues" passed by the Third Plenary Session of the 17th CPC Central Committee puts forward that by 2020, the per capita net income of farmers is more than doubled in 2008, which means that farmers will be pure in the next 12 years. The average annual increase in income must remain above 6%. The gradual increase in peasant income has guaranteed the purchase of agricultural machinery.
Finally, the inherent needs of agricultural modernization. Through years of subsidy policy implementation, the level of China's agricultural mechanization has greatly improved, and the overall rate of mechanization of cultivated crops has increased at an annual rate of about 1.5 percentage points, reaching 43.8% in the first half of this year. The % goal is expected to be achieved one year ahead of schedule. However, compared with nearly 100% of the mechanized rate in agricultural developed countries such as the United States, South Korea and Japan, we still have a large gap.
At present, there are few listed agricultural machinery companies. One stock market has Yueda Investment, and h shares have one stock. Similar to the performance of the industry, the profitability of listed companies in agricultural machinery is generally low. Although there are broad prospects for the development of the industry in the future, there are no good investment opportunities for agricultural machinery listed companies.
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