Year end inventory: What major events have occurred in the agricultural machinery industry in 2022?

At the end of 2022, what major events have taken place in the agricultural machinery industry, what new policy adjustments have taken place, and what changes have taken place in agricultural machinery enterprises? Let's take a look.

2022 annual inventory (enterprise)

Construction machinery enterprises enter the agricultural machinery industry

In 2022, engineering machinery enterprises such as Shanhe Intelligent Equipment Co., Ltd. and Sinomach Changlin Co., Ltd. under the state-owned enterprise Sinomach Group will enter the agricultural machinery industry. Among them, Shanhe Intelligent may enter the cotton picker industry. According to the official account of Shanhe Intelligent Equipment, on July 31, 2022, a delegation led by Xu Zhenxing, deputy head of the agricultural mechanization general station of the Ministry of Agriculture and Rural Affairs, visited Shanhe Intelligent, focusing on the research, development, manufacturing costs and promotion and application of cotton pickers. According to the exclusive news of Agricultural Machinery Communication, Shanhe Intelligent entered the field of cotton picker under the entrustment of Xinjiang Production and Construction Corps, and urgently needed domestic high-quality cotton picker and packer products.

Changlin, on the other hand, invested 22.8 million yuan to buy the "Rape Blanket Seedling Joint Transplanting Technology" of Nanjing Institute of Agricultural Mechanization, Chinese Academy of Agricultural Sciences. This technology has innovated the transplanting method of cutting the blanket seedlings into pieces and transplanting them into seams, and the integrated tillage and planting operation mode. It has created a rapeseed blanket seedling joint transplanter that integrates tillage and planting, effectively solving the worldwide problem of efficient rape transplanting under the conditions of sticky and heavy soil in rice stubble fields.

Change of the Board of Directors of YTO

On April 13, YTO Corporation held the first extraordinary general meeting of shareholders in 2022, where Liu Jiguo, Zhang Zhiyu, Fang Constitutional, Ma Zhihui, Xue Lipin, Wang Shumao and Xu Liyou were elected as directors of the ninth board of directors of YTO Corporation, and Yang Yu, Gu Aiqin and Xiao Bin were elected as non employee supervisors of the ninth board of supervisors of YTO Corporation. The new Board of Directors, the Board of Supervisors and the management team will begin to perform their duties on April 13, 2022, with a term of office of three years.

Weichai Lovol to be listed

On August 30, 2022, Weichai Power Co., Ltd. (hereinafter referred to as "Weichai Power") issued a blockbuster announcement to split Weichai Lovol and list it on the Growth Enterprise Market of Shenzhen Stock Exchange (hereinafter referred to as "this split and listing"). Weichai Power said in its announcement that the purpose of this split and listing is to actively respond to the reform action of state-owned enterprises, realize the value maintenance and appreciation of state-owned enterprises, improve the development quality of listed companies with the support of capital market policies, comprehensively optimize corporate governance, and create a global leading brand of smart agriculture. Weichai Power also mentioned in its announcement that the proposed split and listing will not have a material impact on the sustainable operation of other business segments of the company, and will not damage the company's independent listing status and sustainable profitability.

Weichai Lovol "Garrison" Jiamusi

On October 28, 2022, Weichai Lovol held a signing activity for high-end intelligent agricultural machinery equipment project with Beidahuang Agricultural Reclamation Group in Jiamusi City. The fact that Weichai Lovol built a factory in Heilongjiang has become a reality, which has been rumored for a long time in the industry. The purpose of establishing the plant in Jiamusi is to promote domestic high-power tractors, large feed harvesters, and other high-end intelligent agricultural machinery and equipment to be landed in Heilongjiang to comprehensively replace imports. According to insiders, Heilongjiang is a place of contention for agricultural machinery enterprises, a major battlefield for high-end agricultural machinery, and a major position for foreign brands. However, domestic brands, including Weichai Lovol, have not been deeply involved in the local market until now. This is due to the product itself, the use habits of local users, local guidance and many other factors. However, with the rise of Made in China, more and more domestic agricultural machinery, such as Weichai Lovol, has been selected by local users to compete with foreign brands.

Enterprise Semi annual Report

Although there are not many listed companies in the agricultural machinery industry, the overall situation of the domestic agricultural machinery market in the first half of the year can be roughly seen from the performance of several listed companies. In the first half of 2022, YTO Group realized a total operating income of 6.63 billion yuan, up 17.73% year on year; Weichai Lovol's operating income was 8.59 billion yuan, up 23.83% year on year; Zoomlion achieved a total operating revenue of 21.299 billion yuan, a year-on-year decrease of 49.82%; Jifeng Technology achieved a total revenue of 1.279 billion yuan, up 14.84% year on year; The total operating income of Xinyan Shares was 557 million yuan, a year-on-year increase of 38.42%; The total operating income of Xingguang Agricultural Machinery was 179 million yuan, a year-on-year decrease of 35.87%; Swan achieved a total operating income of 146 million yuan, an increase of 8.34% year on year.

Country Garden marches into high-end intelligent agricultural machinery equipment

On the morning of July 6, 2022, the signing ceremony of the Biguiyuan Modern Agricultural High end Intelligent Equipment Project with a total investment of 5 billion yuan was held in Linyi, Shandong Province. According to the official news, the project has a total investment of about 5 billion yuan, with an annual output of 10000 100-500 horsepower tractors, 2000 full series harvesters, 7000 agricultural machines and tools, and 5000 unmanned operation and maintenance robots, with an annual output value of 16 billion yuan, The main body of the project is Guangdong Haoyun Technology Co., Ltd., a subsidiary of Biguiyuan. Although Country Garden is under pressure in the real estate industry, it has made constant efforts in the agricultural field. At present, Guangdong Haoyun has set up five research institutes, gathering more than 300 R&D personnel from well-known agricultural machinery enterprises at home and abroad. The core management teams are all from well-known agricultural machinery manufacturing enterprises at home and abroad. Some people think that entering agriculture is a "ticket game", and we will see how it will develop in the future!

2022 annual inventory (policy)

No. 1 central document

Every year, the No. 1 central document is very concerned by the insiders. The contents of the No. 1 central document play a role as a wind vane for the development of the agricultural machinery industry. The No. 1 central document in 2022 mentioned that we should vigorously implement the soybean and oil production capacity improvement project, promote the belt compound planting of corn and soybeans in the Huang Huai Hai, northwest and southwest regions, and support family farms, farmers' cooperatives, and leading enterprises in agricultural industrialization to diversify and grow good crops. Improve the R&D and application level of agricultural machinery and equipment. Accelerate the R&D and manufacturing of high-power machinery, small machinery for hilly and mountainous areas and facility gardening, and high-end intelligent machinery, and incorporate them into the national key R&D plan for long-term stable support. Implement the subsidy policy for the purchase and application of agricultural machinery, and optimize the payment method of subsidies. Improve the performance evaluation mechanism of agricultural machinery, promote the purchase and export of subsidized machines and tools, and optimize the compensation of machines and tools, focus on supporting agricultural machinery such as grain drying, caterpillar operation, corn soybean belt composite planting, rapeseed harvesting, and promote large-scale composite intelligent agricultural machinery.

No. 1 Document issued by the Ministry of Agriculture and Rural Affairs

In March 2022, the No. 1 document issued by the Ministry of Agriculture and Rural Affairs mentioned that it would increase policy support, optimize the subsidies for the purchase and application of agricultural machinery, vigorously promote the belt type compound planting of soybean and corn, actively restore the soybean area in Northeast China, speed up the development of herbivorous animal husbandry, and strengthen the control over the use of cultivated land. Strictly observe the red line of 1.8 billion mu of arable land, improve the level of agricultural machinery and equipment, speed up the repair of equipment weaknesses, increase policy support, and strengthen the cultivation of high-quality farmers.

Decrease of tractor subsidy

This year, several provinces (cities) released a revised version of the subsidy amount in 2022, and the subsidy amount for the purchase of tractors was almost completely reduced. In fact, the adjustment of tractor subsidies has been reflected in the Guiding Opinions on the Implementation of Subsidies for the Purchase of Agricultural Machinery in 2021-2023. The document requires that the subsidies for wheeled tractors and other machines and tools with significantly excessive inventory and relatively backward technology in the region should be gradually reduced. By 2023, the estimated proportion of the subsidies should be reduced to 15% or less, and some low value machines and tools should be removed from the scope of subsidies. This year, the Ministry of Agriculture and Rural Affairs and the Ministry of Finance issued the Notice on Doing a Good Job in the Implementation of Agricultural Production Development and Other Projects in 2022, which also proposed to reduce the estimated proportion of wheeled tractor subsidies to less than 20%. The number of tractors is not only too large, but also the technology is backward. In particular, the country is about to enter the national four emission stage, and the technical requirements for tractors are higher. At the end of November this year, Shandong Province released a list of national four tractor subsidies in advance. Compared with 2021, the national four tractor subsidies have increased, but the amount is not high.

The official implementation of national fourth emission

According to the original plan of the Ministry of Ecology and Environment, from December 1, 2022, all non road mobile machinery of 560kW and below produced, imported and sold and the diesel engines installed therein shall meet the requirements of the Emission Control Technology for Pollutants from Non road Diesel Mobile Machinery. At the first press conference of China Construction Machinery Industry Association held on July 22 this year, China Construction Machinery Industry Association released a blockbuster news that it was applying to the Department of Atmospheric Environment of the Ministry of Ecology and Environment to postpone the implementation of the "National Fourth Plan" in the construction machinery industry to April 1, 2023. The insiders speculated that whether the agricultural machinery industry would also apply for an extension. However, according to the latest news from the exchange seminar on environmental protection emissions of the construction machinery industry held in Changsha on August 11, 2022, the time for the switch of national three emission standards to national four emission standards for construction machinery was December 1, 2022, which will not be extended as scheduled. The agricultural machinery industry is no exception. Since December 1 this year, the national four emission standards for agricultural machinery have been officially implemented. Although insiders have proposed or called for an extension, they have failed to achieve their wishes.

Emergency operation service team

On August 22, the General Office of the Ministry of Agriculture and Rural Affairs issued the Guiding Opinions of the General Office of the Ministry of Agriculture and Rural Affairs on Promoting the Construction of the Normalized Agricultural Machinery Emergency Operation Service Team. The guidance put forward that, according to the needs of agricultural production development, relying on various agricultural machinery operation service organizations such as agricultural machinery cooperatives, a normalized agricultural machinery emergency operation service team should be established to strive to start in one year and become a network in three years. Give play to the guiding role of the central government's agricultural machinery subsidies, focus on supporting the emergency operation service teams included in the list to purchase agricultural machinery and equipment needed for emergency operations, guide the local authorities to give priority to including the local agricultural machinery urgently needed for emergency operations into the scope of subsidies, increase the proportion of subsidies for key machinery and tools according to regulations, actively use the measures such as the pilot purchase subsidies for new agricultural machinery products, the purchase subsidies for special identification products, and support the purchase of new emergency equipment.

Subsidy fund for agricultural machinery purchase in 2023 will be 14.5 billion yuan

In the middle of November, the central government released 211.5 billion yuan of agricultural related transfer payments in 2023 in advance. In order to encourage farmers to do a good job in autumn and winter agricultural production without missing the agricultural time, do a good job in the spring cultivation and preparation in 2023, and ensure the farmers' income from grain production, this time, the government released all the farmland fertility protection subsidies in advance according to the implementation amount of 120.5 billion yuan in 2022. A subsidy of 34.6 billion yuan for farmland construction was issued in advance to support local governments to plan high standard farmland construction projects in advance, and a subsidy of 14.5 billion yuan for the purchase and application of agricultural machinery was issued in advance. We adhere to the goal orientation and focus on supporting agricultural machinery related to ensuring national food security and the supply of important agricultural products.

2022 annual inventory (others)

Agricultural machinery exhibition closed

In 2022, due to the epidemic situation, both the spring exhibition in the first half of the year and the autumn exhibition in the second half of the year could not be held as scheduled. After many delays, the exhibition was finally suspended. In view of the severe epidemic situation in 2022, the organizer will suspend the exhibition to show its responsibility and responsibility. For the fees paid by the enterprise, the organizer will refund them in full. At the end of December, the sponsor again announced the holding of the 2023 Spring Exhibition. It is believed that the long-awaited agricultural machinery exhibition in the industry will be held as scheduled in 2023.

Cutting green wheat as feed

In May 2022, according to the video spread on the Internet, in some wheat planting areas in the north, some farmers harvest green wheat in advance, claiming that it is used as fodder. One mu of land can be sold for 1500 yuan, or even more than 2000 yuan. Experts said that it is not appropriate to use wheat as the silage. The conversion value of wheat as the feed is not as high as that of corn, and the biomass is not higher than that of corn. Unless the yield estimate is extremely low due to heavy rain, late sowing of wheat, improper planting, etc; Otherwise, it is neither cost-effective nor appropriate to make silage. The Ministry of Agriculture and Rural Affairs attaches great importance to this, and requires all localities to further investigate all kinds of wheat destruction, such as wheat destruction and silage, and deal with all illegal acts.