李伟国深度解读我国农机化发展现状和趋势（英）

Li Weiguo’s Analysis of Trend of Subsidy for Purchasing Agricultural Machinery during 2018-2020

On July 11, 2017, 2017 National Agricultural Machinery Circulation Work Conference and the5th Plenary Session of the 6th China Agricultural Machinery Circulation Association was held in Harbin. Li Weiguo, Director of the Division of Agricultural Mechanization Management of the Ministry of Agriculture, attended the conference and delivered a keynote speech entitled “Current Situation of Agricultural and Agricultural Mechanization Development”.

Li Weiguo first introduced the Guiding Opinions on Implementation of Subsidies for Purchasing Agricultural Machinery during 2018-2020 which is being formulated from aspects of policy-making objective, subsidy object, subsidy method and changes in specific operation, etc.

Trend of subsidy for purchasing agricultural machinery

Li Weiguo revealed that the specific proposal for the Opinions is still under discussion, but the general direction shall also adapt to the needs of modern agricultural development, transformation of mode of agricultural production and changes in government functions. Meanwhile, the adjustment will focus more on the difficulties and problems in the implementation process, strengthening the process supervision, enhancing information disclosure, performance assessment and clean government risk prevention and control and effectively protecting the security of subsidized funds to better mobilize the initiative of the farmers and agricultural workers to purchase and use the agricultural machinery.

First, the subsidy object is dominated by farmers and agricultural workers.

Li Weiguo clearly pointed out that the policy-making objective is still to mobilize the initiative of the farmers and agricultural workers to purchase and use the agricultural machinery and enhance the level of China’s agricultural machinery. Aiming at this objective, the object entitled to the subsidy for purchasing agricultural machinery in the future is also dominated by farmers and agricultural workers.

Second, attention shall be paid to the national key agricultural subsidies.

Li Weiguo pointed out that the subsidies shall focus on key areas first. Measures shall be taken to ensure the safety of production and supply of important agricultural products, and accelerate the whole mechanization of major crops such as grain, cotton, oil and sugar to improve the directivity and precision of the policy.

Then it is required to play a guiding role in promoting the transformation of mode of agricultural production and adapting to the adjustment of agricultural planting structure, such as animal husbandry machinery.

In addition, appropriate measures shall be taken to encourage the development of agricultural equipment that support environmentally-friendly and green agriculture.

Such as straw treatment equipment, as required in the “Thirteenth Five-year Plan”, the national comprehensive utilization of straw is required to strive to reach more than 85% by 2020, with a sharp decrease in number of straw burning fire points and fire area. And such requirement shall be supported by mechanized equipment.

“It is in largely demand for the government guidance, because it is difficult to complete by a single enterprise.” Liu Weiguo said so while speaking of agricultural sustainable development.

Third, sufficient subsidies will also be vigorously implemented.

Li Weiguo confirmed that the new round of subsidy policy gives the guiding ideas that sufficient subsidies will also be provided within a certain scope to further promote the generalized system of preferences. For some minority agricultural machinery with local characteristics, special policies or local financial policies shall be needed to support its development.

The central finance’s fund subsidies will still focus on subsidizing the machines and tools required in key links of production of major crops such as grain, cotton, oil and sugar, as well as animal husbandry, fisheries, facility agriculture and other sub-industries, but not all aspects can be taken into account.

Meanwhile, Liu Weiguo also revealed some very important information that some fund adjustments may be made to guide the innovative development of agricultural machinery product and technology in terms of technical innovation of agricultural products and application and innovation of new technology and products.

Fourth, subsidy standard may still be implemented in the mode offsetting quotas for subsidies.

Subsidy fund for purchasing agricultural machinery during 2015-2017 is implemented in the mode of setting quotas for subsidies. Speaking of the implementation, Li Weiguo said frankly that the mode of setting quotas for subsidies can play a better role than proportional subsidy.

Li Weiguo introduced that the proportional subsidy will generally inflate the overall market price, so that the effect of the national subsidy fund will be greatly reduced. Furthermore, if the imported agricultural machinery is allowed in the future to entitled to the subsidy fund, the proportional subsidy will certainly be more favorable for the imported agricultural machinery, which may be squeeze the development of China’s domestic agricultural machinery industry to a certain extent.

Li Weiguo further pointed out that the next subsidy standard may also be implemented in the mode of setting quotas for subsidies, and “lowering the setting quota” may still be the theme because higher quota may result in waste of resources, intensifying unfair competition between enterprises and market distortion. Meanwhile, Li Weiguo also expressed that the reduction in the quota shall be appropriate to be able to mobilize the initiative to purchase the agricultural machinery exactly.

Fifth, actions shall be taken to determine a more scientific, stable system that adapts to market changes.

Li Weiguo pointed out that original intention of setting the subsidy fund for purchasing agricultural machinery is to support the development of modern agriculture and improve the enthusiasm of agricultural workers to purchase the agricultural machinery. He then further asked, “Can we try to make use of the subsidy for purchasing agricultural machinery by other means to achieve the same original intention in addition to directly subsidizing the agricultural machines and tools.”

Li Weiguo envisaged that if it is possible not to subsidize large-scale machinery but to provide a soft loan under mature conditions or take some measures to avoid wasting much time in subsidy fund, and small machinery will be directly subsidized.

For example, the General Office of the State Council issued the corresponding guiding opinions in 2015 to encourage financial leasing companies to support the development of modern agriculture, and actively provide financial leasing business for big farming households, family farms, agricultural cooperatives and other new agricultural managing bodies to solve the problem of insufficient fund in purchasing and renewing the large-scale high-end agricultural machinery, and the Ministry of Agriculture also launched the financial leasing projects with interest discount for large-scale agricultural machinery in Guangxi and Xinjiang in succession.

It is still unclear that what Li Weiguo envisaged can be written into the Opinions in the future, but it was the first time for Li to share his ideas in this regard at the National Agricultural Industry Conference, so it can be seen that the Ministry of Agriculture may introduce greater reform and innovation while studying and formulating the new Opinions.

Sixth, decentralization and strict supervision shall be attached with equal emphasis.

Li Weiguo pointed out that the central government will continue to adhere to the principle of “streamlining administration and instituting decentralization and delegating power and strengthening regulation” with regard to management of production and marketing enterprises of subsidized agricultural machinery products and competent departments of the local government. Li also stressed that decentralization can better mobilize the enthusiasm of the policy executor and better adapt to the needs of local agricultural development.

Li Weiguo pointed out, “To protect the customers’ autonomy to select and purchase the machine, that is, the farmers can purchase the machine regardless of location and manufacturer, we must ensure that the farmers will make their own decision to avoid human interference. In addition, the formalities shall be one-stop as much as possible while the farmers apply for subsidies for purchasing the agricultural machinery and actions shall be taken to speed up the settlement of subsidy fund.”

Li Weiguo stressed that “strict supervision” is more important while delegating powers to lower levels.

Li Weiguo pointed out that we must implement the responsibilities of the competent departments first in strict accordance with fair and impartial procedures and we must strengthen information disclosure. We shall make public the use progress of subsidy fund, remaining fund and other important information in advance, so that users can better arrange their time for purchasing the machine. In addition, unless the local finance is able to cope with changes in the subsidy fund, it is not recommended to subsidize too many products in advance.

Seventh, the harshest-ever punitive measure will be implemented.

At the end of the report, Li stressed that it is required to encourage agricultural machinery manufacturers and distributors to engage in legal operation and integrity management. Units and individuals will be cracked down on their opportunism and illegal use of subsidized funds If necessary, it may be carried out throughout the country not only to deal with a single illegal product, but to suspend the qualification of the enterprise’s all products for subsidies.

Li Weiguo firmly believed that it will be conductive to purifying the market and protect the security of subsidy funds by take harsh punitive measures to crack down on violations to increase the illegal costs of enterprises.

Last but not least, Li Weiguo expressed that the government strives to promulgate the Opinions in December this year, so as not to affect the subsidies for next year.

Development situation of agricultural mechanization is mixed

In addition, Li Weiguo also analyzed the development situation of agricultural mechanization in China at the conference.

Li considered that the current promotion and application of agricultural mechanization in China is gratifying. In 2016, the comprehensive mechanization rate of crop cultivation and harvest reached 64.67%. In addition to the major planting links of staple crops, the mechanization level of other crops has also been improved in links such as farming, planting, transportation, storage and transportation. In addition, agricultural applications have been expanded from planting industry to animal husbandry and other fields.

Li Weiguo introduced, “We are very pleased to see that agricultural mechanization is being given attention by more and more local government as an important support for the development of modern agriculture. For example, Shanghai takes the development of agricultural mechanization as an indicator to assess the work of each district government,”

Li Weiguo pointed out by taking “three summer” for example that the national mechanical reaping level of wheat reached a new high in 2017, the time of the entire “three summer” is one day shorter than 2016, and the level of informatization of “three summer” in 2017 has also been improved. In the process of “three summer” operation, those agricultural machines and tools that are in line with sustainable development and environmental protection play an important role in straw treatment and green agricultural development.

The current promotion and application of agricultural mechanization in China is gratifying, but there are still two concerns.

One concern is the aspect of entire and full mechanization of agricultural machinery. Li Weiguo held that mechanization has not been achieved in the planting of a variety of crops at present, especially for some economic crops with large planting area, there still lacks a mature, quality and efficient solution for agricultural mechanization. The mechanization is also in urgent need to be strengthened in purchasing and storage, transportation, crop protection, processing and other links in addition to farming and harvest of staple grain and crops. In fact, it is also the “weakness” for the development of agricultural mechanization in China.

Another concern is the low-price running of the current agricultural machinery market. Li Weiguo pointed out that as of the end of June, the provinces have granted the subsidy fund of 4.15 billion Yuan provided by the central finance, completing 22% of the annual task only, while the subsidy fund used at this time in previous years would be above 5 billion Yuan.

It shows that the farmers lack enthusiasm for purchasing the agricultural machinery in 2017. According to the CAMDA China Agricultural Machinery Market Prosperity Index (AMI) Business Report released by CAMDA on a monthly basis, six primary indexes of industry monitoring turn out to be sluggish; especially the manager confidence index suffers a significant decline. These data shows that the current agricultural machinery market suffers a significant decline, and the decline may have a great impact on the development of agricultural mechanization, which is not conducive to the sound and fast development of agricultural mechanization.