In the second half of 2011, the construction machinery industry experienced a sluggish trend, but agricultural machinery that has never been valued by construction machinery companies has performed well. The total industrial output value of the industry totaled 289.8 billion yuan, an increase of 33.74% over the same period of last year. The total industrial output value was 282.9 billion yuan, an increase of 34.39% over the same period of last year; the export delivery value was up 15% year-on-year. The growth rate of 30% is beyond the reach of engineering machinery. The real estate policy and the unexpected slowdown of the high-speed rail have brought a tremendous impact on the construction machinery industry. Compared with the coldness of the construction machinery industry, the agricultural machinery industry has received strong support from the country. The agricultural machinery market is booming. Some experts predict that the development of agricultural machinery will not slow down in 2012. The broad market prospects are eye-catching.

National policies to force agricultural construction machinery In 2004, the state began to adopt subsidies for the purchase of agricultural machinery, which greatly stimulated the development of the agricultural engineering machinery industry. The pastoral management machines and micro tillage machines in agricultural construction machinery are growing at a double-digit rate each year. The rate of increase in the last three years has reached an astonishing 25% and 45%. In recent years, China's economy has developed rapidly and the process of urbanization has been advancing rapidly. The reduction of the rural labor force has become a problem that the country has to face. How to ensure food production has become the focus of attention of the country. The low investment in agricultural engineering machinery and the effective replacement of the rural labor force have undoubtedly become a solution to this problem. In 2011, the state central budget allocated agricultural subsidies for purchase of agricultural machinery to an astonishing $17.5 billion. In 2012, the national budget increased the subsidy for agricultural machinery purchases to 20 billion. This undoubtedly adds new impetus to the rapid development of agricultural engineering machinery. Some experts predict that in 2012, the agricultural machinery industry will reach 320 billion yuan, and the industrial added value will increase by about 20% year-on-year. China is a developing country, and the level of agricultural modernization is still relatively low compared with developed countries. Market participants pointed out that although the total amount of agricultural machinery in China is developing rapidly, the huge population base still keeps the per capita holding of agricultural machinery in China below the world average, and the comprehensive mechanization level is only about 48%. The domestic market has broad prospects. In addition, “Made in China” agricultural engineering machinery has been favored by many developing countries for its cost-effectiveness. The promotion of both internal and external driving forces makes the outlook for agricultural engineering machinery in 2012 bright. Although the market has broad prospects and the driving force for development is sufficient, the problems inherent in the domestic agricultural engineering machinery manufacturers cannot be ignored.

Unordered competition in the agricultural machinery industry As China has a large population, traditional agricultural production methods are still quite common in China, and the use of agricultural machinery is slower than that of European and American countries. The consumption capacity of agricultural machinery consumer groups is relatively low, and users are accustomed to saving on purchasing costs. The demand for products is very low and they can be used. Affected by market orientation, the current price competition for the production of agricultural machinery in China is extremely fierce, and there is little investment in product quality and technological innovation. This will inevitably lead to a result that products are modeled on one another and highly homogenized. Companies pay attention to price wars and their product profits are low. Domestic agricultural machinery manufacturers are generally weak in terms of technology, production capacity, or marketing capabilities. Coupled with low technical content of products, maintenance personnel, parts and maintenance technology are relatively easy to obtain from the community and other reasons, the domestic agricultural machinery production enterprises are caught in a cyclical price war, there is no strange circle of technological innovation and product quality improvement. The level of production enterprises is not uniform and the market order is chaotic. The overall industry is unhealthy.

Although the current level of agricultural engineering machinery products is generally not high, but after several years of development, agricultural engineering machinery is moving toward the direction of "from low to high, from coarse to fine" and diversification, serialization, at present some domestic Enterprises have consciously changed the status quo of product shoddy, and the quality of products and manufacturing water are improving step by step. As the market continues to look good, the production and sales of products will continue to increase, and the scope of use will further expand. It is believed that China's agricultural machinery manufacturing enterprises will certainly be able to jump out of the cycle of price wars and sell more Chinese agricultural engineering machinery to the world.