In recent years, China's agricultural mechanization accelerated its development under the central government's policy of strengthening agriculture and benefiting farmers, especially the purchase of agricultural machinery. In 2010, the level of comprehensive mechanization of crop cultivation and harvesting reached 52%, and agricultural production achieved a historic leap from human and animal husbandry to mechanization.

According to statistics, in 2010, the output of large and medium-sized tractors in China was more than 380,000 units, and the output of small tractors was 2.28 million units. The domestic tractor market achieved sustained and stable growth. Standing on the high starting point in 2010 and looking forward to 2011, the author after research and analysis believes that the situation in the tractor market in 2011 will continue to be optimistic, but the product prices will rise. This is mainly based on the increase in high yield of agricultural products in 2010. In 2011, the increase in subsidy funds for agricultural machinery purchases and policy efforts continued to increase. The international agricultural machinery market is getting better, and the prices of major raw and auxiliary materials are rising.

From the point of view of the market that the author understands, since March, as most parts of China began to enter the intense and busy spring tillage preparation season, the tractor market in some areas has also entered the climax of sales. The current tractor market sales show early start-up, large differences, and a wide range of features:

First, there is a big difference in the start of the tractor market. Some areas in the south, parts of the northwest, and northeastern regions have begun to start up due to the busy spring plowing and ploughing work. However, starting from the signs, the areas where cash crops are the main areas last year have relatively high purchase prices for agricultural products. The regional market where farmers’ income has grown rapidly is relatively strong, such as Guangxi, Northeast China, Xinjiang, and some other regions; while other regions may not start yet, or because the traditional agricultural income is relatively slow, the market has not yet started or started. In general, such as the Jiangxi market located in the south, since the sales of walking tractors in the first two years have all surpassed 70,000 units, and the amount of social possessions has increased rapidly, the market launch this spring is not ideal.



Second, the start-up time of the tractor market was obviously earlier than last year. Judging from the sales situation in this year's market, the tractor market started significantly earlier than the same period of last year. In some regions such as the Xinjiang Autonomous Region, the market began to sell in the fourth quarter of last year. Some regions in Northeast China began selling tractors as soon as Spring Festival ended. March was even more comprehensive. According to the National Bureau of Statistics, the output of large-scale tractors rose by 37.7% year-on-year in March, the output of medium-sized tractors increased by 18% year-on-year, and the output of small tractors increased by 17.5% year-on-year. Correspondingly, the sales of tractors in the first quarter of last year were actually not ideal.

Third, the tractor market started wider. Judging from the current market conditions, some of the earlier regional markets for spring plowing started to move earlier and started in the northeast, northwest, and south regions. Correspondingly, last year the tractor market started off unevenly. Some individual markets had better sales. Most markets concentrated on starting sales in mid-April. Some markets began to sell in May and individual market sales continued to July.

Fourth, the start is more violent. This year, in some well-established regional markets, the phenomenon of ordinary people rushing to purchase tractors and the continuous increase in the prices of raw and auxiliary materials since the second half of last year have resulted in the emergence of some enterprises due to the shortage of labor in some regions after the spring of this year. Difficulty, the production of tractor products can not meet the market demand, so the phenomenon of out-of-stock appears in some regions. The better tractor export situation this year has also contributed to the shortage of domestic sales. In the first quarter of last year, the tractor market was mainly dominated by production companies, and sales were not satisfactory. According to the information provided by the statistics meeting of the machinery industry tractor industry, the production and sales ratio of tractors in the tractor industry in the first quarter of this year reached 97.4%, an increase of 9 percentage points from the same quarter last year.

According to the author's investigation and analysis, there are three main reasons for the strong growth of the domestic tractor market this year:

The first is that the national supplement funds and programs were issued earlier, and the users have taken care of the pills. Since the first batch of 11 billion yuan in subsidy funds had reached the provinces in 2011 last year, there will certainly be subsidies in 2011, and the total amount of subsidy funds will not be lower than that of 2010, which is basically a foregone conclusion, so some local agricultural machinery authorities are no longer As it did last year, the subsidy program was not allowed to advance. Farmers also dared to buy in advance because the propaganda had eaten in place of the agricultural machinery purchase subsidy policy. It is understood that in some areas such as southern Xinjiang, most farmers are buying in full, even in this situation, users are still more enthusiastic about buying, indicating that there is still a strong market demand for rigid.

Second, as the income of farmers increases, the enthusiasm for investing in agriculture increases. Due to the relatively high purchase prices of food crops and cash crops in 2010, the level of income generated by farmers has increased rapidly. According to statistics, the per capita net income of farmers in China reached 5,919 yuan last year, an increase of 766 yuan over 2009, which was the largest increase in history in history. The per capita income of farmers increased by 10.9% in real terms; the income of farmers continued to grow and their expected income for the future The increase has increased the confidence of farmers in increasing agricultural investment and raising output and income. Therefore, under the promotion of the agricultural machinery purchase subsidy policy, users are very active in purchasing agricultural machinery.

Third, the price increase of raw and auxiliary materials is also an important reason to boost the market. Since the second half of last year, the prices of raw and auxiliary materials for tractors such as crude oil, pig iron, and non-ferrous metals have all increased substantially. According to incomplete statistics, the main raw material in February 2011 was 25.7 higher than that of January 2010. %, which brought about 20% increase in the price of steel used in tractors such as cast iron, caskets and shafts; 20% increase in tires (natural rubber rose 78% over the same period of last year); lead in non-ferrous metals (mainly for batteries Raw materials) rose by 7.5% over the same period of last year, and copper (the main raw material of water tanks) rose by 21.8%, resulting in rises in water tanks, batteries, etc.; diesel rose by 24.4%; and the emission requirements for tractor-supported diesel engines met the national second standard, all leading to manufacturing. With the increase in cost, the price of small wheeled tractors has generally risen by more than 1,000 yuan, and the price of large wheeled tractors has generally risen above 2,000 yuan. However, farmers' consumption has a tendency to buy up, not buy, and buy sooner or later, it is better to buy before the price increase, which also boosted the strong start of the market.

As the Ministry of Agriculture's "Guidelines for the Implementation of the 2011 Agricultural Machinery Purchase Subsidy" was formally issued in March, the subsidy programs of the provinces will be introduced in April and May, and the total amount of subsidies in 2011 will reach 17.5 billion yuan, which is more than last year's growth. 2 billion yuan, even after the end of the spring plowing in some regions, due to the start of the subsidy program will also have some sales, so this year's tractor sales season will continue for some time.