Vice Minister of Finance Wang Dongwei said at the press conference of the State Information Office on April 22 that the focus is on “technical” multi-directional efforts to support cost savings and efficiency in agricultural production.

There are also three main points:

The first is to support large-scale increases in grain and oil yield. Arrange 4 billion yuan to support the implementation of yield improvement actions for large-scale grain and oil growers, and promote the application of techniques to increase production such as intensive planting and precision sowing. Allocate 3.4 billion yuan to support green, high-yield and efficient actions for key crops such as grain and oil, and accelerate the integration of good fields, good cultivation, good opportunities, good law, and good production systems.

The second is to support actions to revitalize the seed industry. Allocate 11 billion yuan to continue to support and promote research on key core technologies for key varieties such as corn and soybeans, carry out integrated pilot projects for R&D, promotion and application of major varieties, and implement policies such as incentives for major breeding counties.

The third is to support the promotion and application of agricultural equipment. This year, 24.6 billion yuan was allocated to support agricultural machinery purchase and application subsidies to step up implementation of agricultural machinery scrapping updates. I just mentioned a new round of large-scale equipment trade-in. The scrapping and renewal of agricultural machinery is one of them.

GF Securities released a research report stating that agricultural machinery products are diverse, the industry space is large, and demand is growing steadily. Agricultural machinery is affected by factors such as farming processes, terrain, and crops, and has various characteristics. After decades of development, agricultural machinery in China has initially entered a mature period. The industry space is large, and demand is growing steadily against the backdrop of increased food security and per capita food consumption. Large-scale equipment updates are expected to drive a new round of renewal and replacement demand, compounded by rapid growth in overseas demand, leading agricultural machinery companies are expected to benefit first.

Agricultural machinery-related enterprises:

First Tractor Co., Ltd. (00038): As a leader in the tractor industry, Yituo Co., Ltd. has a rich product matrix. With years of technology accumulation and channel development, the “Dongfanghong” brand is deeply rooted in the hearts of the people. Product sales and sales are far ahead. Benefiting from policy requirements such as agricultural machinery equipment safety and agricultural machinery equipment renewal, the company's market share is expected to increase further in the future. Over the past three years, the amount of cash dividends for Yituo Shares has increased year by year as performance has increased. According to the disclosure, the company plans to distribute 359 million yuan in 2023, and the dividend amounts from 2021 to 2022 are 131 million yuan and 254 million yuan respectively.