The world’s largest makers of tractors and combines are finding a rare opportunity for growth in China despite a sharp slowdown in the world’s No 2 economy, with big farm machines in demand as the rural labor force shrinks and plot sizes grow. For manufacturers like United States-based AGCO and Deere & Co and Italy’s CNH Industrial, Chinese demand for big machines could help to offset weakness in North America and Europe, where farm incomes are declining with global commodity prices…Full Article: China Daily Oct 2015
- By 2020, China hopes that domestic tractor/combine companies will account for 30% of 200 and over horsepower market. This percentage should rise to 60% by 2025. As of 2015, foreign companies reportedly account for roughly 80% of China’s “high-horse-power” (e.g. 140-230 horsepower) tractor/combine market.
- Chinese farm machinery subsidies can pay for 30% to 40% of tractor’s cost.
- In 2013, the total power of China’s agricultural machinery reached approximately 1 billion kilowatts (bw) or 1.34 billion horsepower (hw). In 2010, this figure totaled ~927 million kw or ~1.24 billion hw.
- In 2012, China produced 1 million harvesters and over 2 million tractors.
- In 2011, Chinese production of harvesting machines surpassed 1 million, a 50% increase from 2010.
- In 2005, there was a marked increase in China’s domestic patent applications for agricultural machinery.
- In 2004, China instituted farm machinery subsidies. China’s farm machinery subsidies will reportedly last until 2018 and will focus on farmers who grow grains, cotton, and sugar.