China's agricultural machinery investment continued to decline in 2016

[ China Agricultural Machinery Industry News ] China's agricultural machinery enterprise investment continued to decline in 2016. According to the statistics of China Agricultural Machinery Industry Association, the agricultural machinery industry completed fixed assets investment of 157.109 billion yuan, a year-on-year increase of only 2.44%, much lower than the previous years. However, the state budget invested 977 million yuan, an increase of 51.37% over the same period of last year. The government's financial support for the agricultural machinery industry continued to grow.

China's agricultural machinery investment continued to decline in 2016

In 2016, the National Development and Reform Commission gave greater support to power shift tractors, cotton pickers, and high moisture content corn kernel harvesters. Experts analyzed that investment in agricultural machinery enterprises continued to decline in 2016. On the one hand, it reflects that the industry is in the stage of slow down development. On the one hand, it also reflects that enterprises are more cautious in investing, and more funds are used for equipment upgrade and manufacturing capacity improvement.

In 2016, the agricultural machinery market in some regions of China was in a downturn and sales were not strong; sales of corn harvesters and other products fell sharply; the capital chain of individual agricultural machinery enterprises was broken and could not be sustained. The industry encountered new problems in structural adjustment. However, the overall trend of mechanization in agricultural production is that only relying on mechanization can reduce the cost of agricultural production and improve the international competitiveness of agricultural production. The strong advancement of mechanization in agricultural production will provide opportunities and support for the continued steady development of China's agricultural machinery industry.