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Hutchison chief engineer of the Ministry of Agriculture Zhang Tiejun Extension Station of Agricultural Machinery – Agricultural Machinery,

Posted on 29 August 2010 by admin

Boring afternoon. Reporter received a call from a friend, she just attended the Department of Agriculture Agricultural machinery Technology development and promotion terminus Chief Engineer Zhang Tiejun’s funeral, deeply shocked: “I never expected this in the system, General Zhang respected! Several agricultural provinces Secretary flew to Beijing to hear the news overnight, said to have specially come back from abroad! ceremony, many were crying not become like it! “young, she was the first time I attend the funeral, the first time to understand what is” respectable “!

Zhang Tiejun, an ordinary sounding name; frame where an angular, dark face, the eyes firm, reveals a unique sturdy northerners. Chief Engineer of Ministry of Agriculture, Agricultural Extension Station, such a position, although the hard-won, but the capital in talents, but also far from prominent.

But why, he’s gone to so many people Love cannot be stopped; why, far away in the northeast, Ningxia, Shanxi and other places of agricultural Tough Guy heard the sad news again after the water vapor permeability of the eyes; why, the Ministry of Agriculture to promote agricultural terminus colleagues after his death for some days in class, there are always in his heart that what is missing?

Every day coming to an evening more than two, as if never know what is tired.

– Ministry of Agriculture, Agricultural Extension Station Zhao Ying

“Old iron” tired 6 19, a gray sky, rain falling all morning. Ministry of Agriculture, Agricultural Extension Station Promotion

Director Cao Jianjun arrived units, colleagues told him: “old iron away.”

Cao Jianjun casually should be a voice: “Oh, gone?”

First day, harvest year and we had also talking about their study abroad thing, Cao Jianjun assume that these words was to inform his colleagues, has been traveling the old iron.

Seeing this, my colleagues simply said softly: “old iron died, station leader it is his home.”

Cao Jianjun shocked! I Chang a, blank is no feet and a half day. When he came to understand that when the tears have flooded her eyes.

Zhang Tiejun, held the next day the funeral, many hastily rushed colleagues, friends, tears fly like rain. Tall, harvest year has been physically and mentally Jue Shuo, yesterday strutted and we study the problems, discuss work, how suddenly the dying, yin and yang, a gap?

Harvest year old friend, Ministry of Agriculture, Agricultural Machinery Test and Evaluation Total Zhanfuzhanchang Zhu Liang said that the afternoon the day before his death, Zhang Tiejun China Agricultural Machinery Institute also participated in the national 948 project preliminary feasibility studies. Dinner meal when you stay with him, Zhang Tiejun politely refused.

“His wife in poor health, I have looked after home.” Leaving the phrase, Zhang Tiejun left quietly. On this night, Zhang Tiejun heart attack, died.

“Needless to say, I know that the Iron Army is exhausted.” This is a harvest year old partner, the Office of the Deputy Inspector Zhao Xiaojun farming Ningxia Hui Autonomous Region, told reporters the first thing to see.

As he has made. In the agricultural front, especially agricultural extension system, familiar with the harvest year of people know, the old iron premature death, and the style of his dedicated work ethic, has great relevance.

“Subsidies to purchase the directory such as time out, nearly sixtieth of people every day coming to an evening more than two points, even some of our gang of young people can not stand. Can counterfeit a word children, a number of children with pull, as if never know the meaning of tired. “Agricultural Extension Station on Zhang Tiejun Zhao Ying, professionalism and awkward to work seriously and marveled.

Now, it never seemed tired of the old iron did not know it had to feel tired. He poured in the pursuit of agricultural development in the way of big business, not wake up.

He is too needed rest. Agricultural extension work too hard, others prefer not to, we are dry, but dry in honestly.

? Heilongjiang Province Agricultural Extension Station owners and cure

Pareto, do not dry farm machinery!

Dry agricultural line, tired! Engage in agricultural extension, is to “eat, adversity was tired by the tired.” These words is definitely not watered points.

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Research and Markets: A Billion Dollars a Day: The Economics and Politics of Agricultural Subsidies Addresses the Core …

Posted on 09 August 2010 by admin

Research and Markets: A Billion Dollars a Day: The Economics and Politics of Agricultural Subsidies Addresses the Core …
DUBLIN—-Research and Markets has announced the addition of John Wiley and Sons Ltd’s new book “A Billion Dollars a Day: The Economics and Politics of Agricultural Subsidies” to their offering.

Read more on Business Wire via Yahoo! Finance

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Limited production of rice in Japan with Japanese food imports new? County Agricultural interview

Posted on 28 July 2010 by admin

Planting structure adjustment, economic restructuring in rural areas an important part of how exactly tune? Increase, tuning, tune the quality and efficiency, as the goal is very clear. But as a prerequisite to face the international and domestic markets, which is, after China’s accession to WTO as a necessary requirement. The effectiveness of soy in our province in 2002 were higher, which depends not only on domestic demand conditions, but also on the amount of global soybean production cuts.

Rice is headed Japan’s largest species, the rice production technology, the quality of rice are the best in the world. However, Japan implemented to reduce rice cultivation area of rice production-limiting policies, has been going on for 30 years. Despite Japan’s original intention of this adjustment of planting structure and purpose, and we may be completely different, however, economic integration in the world today, to learn more about the situation of some of our neighbors, we will add some more opportunities.

Japan imports 60% of the food needed is a food importing country absolutely. Particularly vegetables, fruits and other daily consumption of food on a great reliance on foreign markets, such as mine which is rich and rich labor resources, traditional vegetable production and management opportunities for countries.

In the new? Hear a word, the world’s best rice in Japan, Japan’s best rice in the new?, New? The best rice in the fish marsh.

However, this is the best rice, are being implemented in limited production.

New? County Department of Agriculture Forestry and Fisheries Policy Division chief of the General Secretary said that Miyamoto is new? Is Japan’s large agricultural county, the backbone of agricultural products are rice, agricultural produce accounted for 60%? 65%, accounting for 25 Japanese rice production %, the total production of home in Japan. Control of the rice growing area and production has been carried out for 30 years, the new? County in 1998 has been reduced by 40,000 hectares of rice growing area, this 40,000 ha is mainly guided by the state, soybeans, buckwheat, vegetables, fruits, flowers and so on.

New? Angeles County deputy governor spring and Zhao said that due to structural changes in food, consumption of rice per person per year in Japan the volume of declining, there overproduction of rice. In order to maintain the price of rice to protect farmers interests, national restrictions on rice production, and introduced the relevant industrial policies.

According to a statistics, the 1998 Japanese eat rice and 179 grams per person per day, more than 360 390 g before the war, fell by half, mainly food products have become rich diet appears Europeanization tendencies. Reduction in consumption, resulting in a relative surplus of rice production. Japan’s protectionist policies in agriculture, but also caused the extraordinarily high prices of agricultural products. The price of rice is 10 times the international similar products, there can not export. Limited production of rice has become an inevitable choice.

Are planned each year to adjust the acreage of rice last year, new? County completed a planned 98%. But the planting structure adjustment, there is no mandatory, entirely through the policy interests of the guidance, mainly state subsidies to farmers, the basic benefit is 40,000 yen per 0.1 ha. State planning the implementation of limited production of rice farmers in their purchase of machinery equipment, to provide interest-free loan. Miyata Masato Shiozawa town is the largest farming households, he said, not the state’s limited production policy, replacing mechanical equipment, there is no interest-free loans, dare not execute.

Interview, a topic often talked about Japan’s food imports and China’s food exports. Japan’s agricultural gross domestic product accounts for only 2.7% of the daily consumption of vegetables and fruits have great food on the foreign market dependence, vegetables products in China one of the major exporting countries, of which Japan imports 99% of spinach to from China.

Sato quasi-two are new? Daily agricultural experts, in that we can together explore the Japanese agriculture, said that China’s vegetable, not only in price advantage, but from China to Japan in the transport and vegetable preservation also has advantages . However, mothers in Japan, more attention to food safety, price is secondary to the safety of the second choice, which is the general mentality of the Japanese people. Sato said, if we can fundamentally solve the issue of pesticide residues in vegetables, China is likely to monopolize the import of vegetables to Japan.

The issue of national experts believe that Japan’s vegetable production is not only costly but also willing to engage in heavy manual work fewer and fewer people, while the WTO has on the government’s financial subsidies are many restrictions (Japan now come up with substantial funds each year financial subsidy on vegetable production), and further transfer market is inevitable, this is an opportunity. Some of China’s agricultural products competitive in price, but in the non-price factors (including quality, safety, packaging, etc.), but lack of competitiveness.

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Book Launch: Agricultural Subsidies in the WTO Green Box

Posted on 16 July 2010 by admin


Do the World Trade Organizations rules on green box farm subsidies allow both rich and poor countries to achieve important goals such as food security, or do they worsen poverty, distort trade and harm the environment? By bringing together new research and critical thinking, this book examines the relationship between green box subsidies and the achievement of sustainable development goals, and explores options for future reform.

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Congressman Flake Delivers House Floor Speech on Trade and Agricultural Subsidies

Posted on 23 June 2010 by admin


Congressman Flake discusses the recent trade litigation between the US and Brazil and the need for Congress to reform US cotton programs and other agricultural subsidies.

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Agricultural Machinery Industrial Opportunities

Posted on 12 June 2010 by admin

Agriculture and developed areas, must be developed areas, agricultural mechanization, farm machinery and equipment industry is even more developed regions. However, Heilongjiang save the exception.

Heilongjiang is China’s first granary, and medium-sized farm machinery ownership in the country first, but the development of farm machinery and equipment industry, almost at a standstill. More than 20 years ago, Heilongjiang Province, sales of farm machinery and equipment manufacturing industry nearly 20 billion yuan, the current remains the same, ranking first in the country has dropped to 17th.

Provincial Agricultural Research Institute Di He believed that reform and opening up more than 30 years, Heilongjiang Province, have missed the “little four”, “agricultural vehicle” and “horsepower tractors” and other development opportunities in the three farm machinery and equipment industry, today ushered in the big horsepower tractors, combines power and ancillary equipment for the characteristics of agriculture and animal husbandry “modern farm machinery and equipment industries,” the development of the fourth opportunity.

Heilongjiang Province, four non-arrival of a “when the wind”, we use low-cost food to feed someone else’s farm

According to statistics from related departments of Heilongjiang Province, to retain large and medium tractors increased from 127.8 thousand units in 2004 to 44.3 million units in 2008, five years, an increase of 3.47 times. The province to maintain farm machinery and implements increased from 22.2 million units in 2004 to grow to 59 million units in 2008, an increase of 2.65 times the average annual growth of 21.52%.

In recent years, the province’s annual agricultural sales, an increase of 10 billion yuan, 6.63 billion last year, this year is expected to reach 7.5 billion. However, another indicator Querang Heilongjiang were embarrassed last year, agricultural machinery manufacturing enterprises in Heilongjiang Province, main business income of 2.06 billion, accounting for farm machinery and equipment manufacturing industries 1.1% of revenue, accounting for one-third of the province’s agricultural sales, but also means that the province each year there is an outflow of funds Siwushiyi yuan farm purchases, but also means that Heilongjiang with cheap food, to feed someone else’s farm machinery and equipment industry.

Di He said, Heilongjiang back in “25″ period on the establishment of a complete farm machinery manufacturing and application system. 80s of last century the province’s agricultural enterprise sales income reached 20 billion yuan, ranking first in the country. However, with the deepening economic reform, Heilongjiang agricultural enterprises in trouble. What is more regrettable is that, Heilongjiang miss the “little four”, “agricultural vehicle” and “horsepower tractors” and the three mentioned upgraded farm machinery and equipment manufacturing opportunities, reduced to a weak provincial agricultural machinery.

By this time, Jiangsu, Shandong, Zhejiang, Henan and other places, through reform and opening up of the wind, farm machinery and equipment manufacturing industry from scratch, from weak to strong, sweeping farm country agricultural markets. The four provinces account for farm machinery and equipment companies 55% of the total number of agricultural enterprises with sales income accounted for 66% of the national market. , Shandong Agricultural industrial output from the last century 80’s 1 billion yuan start, will grow beyond 300 billion yuan mark last year, the province of Heilongjiang Province, Shandong Agricultural industrial output is less than when the wind (farm) Group output (80 million) for a quarter of the 1.

In accordance with agricultural production for each 1 yuan GDP led 3-7 yuan proportion of Heilongjiang Agricultural equipment industry is not strong, there are more large-scale loss of supporting industries.

“John Deere” “Dong-Jin Group” reveals cutting edge, “the Southern Machine north,” the general trend of

Farm machinery and equipment industry in Heilongjiang, when the Depression, but also a number of “real estate” enterprise full of confidence, “John Deere”, “Dong-Jin Group”, “Harbin Wall” is one representative.

More than 10 years ago, the United States, “John Deere” stationed in Heilongjiang, when its main product — combine sales are very difficult. Today, the same combine harvester sales price from 170,000 yuan each year grow to 27 million, and in short supply. Because, “John Deere” believe, Heilongjiang, sooner or later will become the largest market for combines. Statistics departments also appears to give evidence over the past two years, strong demand for medium-sized harvester, showing rigid growth, in 2007 the demand for 12000 units, 15000 units in 2008, while the actual supply in 2007 to 3,800 units, 2008 Year of 4200 units.

“East Golden Group” A few years ago before entering the farm equipment industry, in addition to financial strength, they know little of the agricultural machinery industry. But the “farm machinery sales great”, so that the enterprise’s annual sales revenue of millions of units of rapid growth, but also so that the “East King Group” speed up business cooperation with domestic and foreign well-known footsteps of agricultural machinery.

Of course, farm machinery and equipment manufacturing “does not give up do not abandon”, and also the provincial Agricultural Research Institute as the representative of the research institutes. The institutions known for research in agricultural implements, in order to allow the rapid transformation of scientific research, have set up a “Harbin Wall” and other hospital is a farm implements manufacturer, is currently only producing more than 10 kinds of agricultural implements, the annual output value reached more than 6000 yuan. This capacity is only about one per cent of the market demand, which means that several hundred million dollars or even billions of dollars of production capacity in the “sleeping.”

-And-coming agricultural enterprises in Heilongjiang, and both are in the province with foreign companies, Foreign companies grafting results.

Di He said that domestic farm machinery manufacturing center in the Northeast there are gradually transferred the main signs of the local market, developed countries, agricultural machinery manufacturers have their sights on moving to China, coupled with the revitalization of northeast old industrial base of national policies, Heilongjiang has been ushered in modern farm machinery and equipment industry development opportunities.

To build modern farm machinery and equipment industry base, not much time left to Heilongjiang, “market-for-factory” no time to waste

To give 100 billion jin of grain production in Heilongjiang Province, matching investment in farm machinery and equipment 17.8 billion, is expected to flow in 2015 the province’s agricultural year will amount to 30 billion yuan. The province’s high-powered tractors and associated farm tools from the current 2000 units (sets) to more than 1 pieces (sets).

A strong agricultural consumer market, naturally attracted many well-known agricultural enterprises. October around the province farm enterprises, “China’s a drag” and the Norwegian Grand Group will be held at Harbin agricultural exhibition, the world’s second-largest farm machinery manufacturer, “Cisco” Our company has a clear-owned factories in the northeast region.

In Heilongjiang industrial development of modern farm machinery and equipment put on the agenda, our neighbors Jiutai in Changchun City, Jilin Province, has Converting a farm machinery and equipment industry base, and then the form of subsidies through the Government launched a base in agricultural machinery sales. Far away from us some of the southern agricultural province, as early as two or three years ago began the development of modern farm machinery and equipment industry.

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China Agricultural Machinery Industry is expected to more than 10 billion yuan of profits in 2009

Posted on 11 June 2010 by admin

Although accurate data this year has yet to be out, but China Agricultural Machinery Industry Association Gao Yuan-yan in the recently concluded 2009 National Farm Machinery Industry Working Conference on high-profile forecasts, this year’s national farm machinery industry output will reach 230 billion yuan, profits will be more than 100 billion! And two years ago in 2007, the annual output value of more than 150 billion yuan of China’s agricultural machinery industry is also becoming the top ten news stories. In the context of the global economic crisis, this data has given a lot of “farm people” proud and excited.

Production and marketing: scenery over here is fine

From the National Bureau of Statistics figures show that 1 in October this year, China’s agricultural machinery industry output value of 187.249 billion yuan, up 23.30 percent, with growth rates in the traditional machinery industry in the first place continue to maintain a sustained, rapid and stable growth. Harvesting machinery and particularly strong growth in large and medium sized tractors.

Since 2002, eight years time, the agricultural machinery industry has maintained annual growth rate of 20% or more. GAO Yuan-yan said, “All major companies this year, two months after the production, sales have continued to maintain the momentum of rapid growth, according to this momentum of view, this year’s national agricultural output value reached 230 billion yuan is no problem. In the world come to look can be described as thriving! ”

In sharp contrast with China is the world’s agricultural industry, the past two years sitting trip “roller coaster” — 2008 rapid growth in 2009 has fallen considerably. In 2008 the world’s agricultural machinery industry in 2007 increased by 13% of the basis, increased by 18%, of which Germany would increase by 25%.

However, the spillover of the financial crisis, the sharp decline in 2009 is expected to reduce over 18% year on year GDP has returned to 2006 levels. Russia, Eastern Europe, a sharp decline in the market, its products are basically out of the international market; Germany, Japan and other agricultural producing countries, a variety of farm machinery sales contraction.

In 2008 the world’s agricultural output value for the 67 billion euros, according to data from comparable estimates, about 15 percent of China into the world’s top five; this year, China will continue to consolidate and strengthen its position as the world’s agricultural machinery. In 2010 in the country’s economic policies and increase the “three rural” work in support of efforts, China Agricultural Machinery Industry Association, estimates that China’s agricultural machinery industry sales growth of 10% to 15%, with a total estimated 250 billion ~ 2700 Bn.

Export: Global with the Yan Liang

In 2008, China’s agricultural product exports accounted for 23% of GDP, into the world trade in the main channel. With confidence a few key agricultural enterprises intended to show in international markets later this year to test their skills did not think the economic crisis our country export market for agricultural products played Qilingbala, the worst-hit areas are China’s traditional market, a serious obstacle to China’s agricultural products in international trade.

The first ten months, exports 4.142 billion U.S. dollars, down 23.99%. In which the greatest impact is the tractor industry, exports fell 43.35 percent, 31.67 percent decline in exports vehicles, while the combine harvester has a more substantial increase in exports.

In 2008, the world’s exports of agricultural products is about 38 billion euros, an increase of 19%. But by 2009, but reversed, the global volume of trade can be “appalling” to describe. European Protection Association (CEMA) released in June 2009 the EU agricultural sector climate index is -67.6, a year ago in June was 71.6. Germany 1 ~ September tractor exports fell 28.4%, farm exports fell 25.4%, export share of agricultural gross output value of the share will be 75% in 2008 to 2009 to 69%. Japan’s exports in the first half of this year fell 38.8% year on year, so that the overall sales of agricultural machinery industry dropped by 20%.

Tomorrow: Comrade needs to be done

2009 National Farm Machinery Industry Working Conference during the World Climate Conference in Copenhagen is being held at. Many representatives said that China’s agricultural diesel engines and various farm vehicles to the increase of carbon dioxide emissions “contribution is not small.” This is a big country to enter our country from agricultural farm power a major obstacle. Formulation and implementation of field operations mechanical energy-saving emission reduction mandatory standards work may in the near future will be put on the agenda. From the situation in Europe, at present, adopting a European Ⅲ A standard, in 2011 to implement EU Ⅲ B standards, in 2013 on the implementation of Europe Ⅳ standard. Compared with them, we do, “shame.”

Product development and technological upgrading of China’s agricultural machinery industry is another bottleneck. According to Gao Yuan Yan introduced foreign tractors, combines many have to spend a CVT, hybrid, ABS brakes, ESP stability system, technologies such as driving. Product development, with the “equipment manufacturing industry adjustment and the revitalization of planning” of the “equipment manufacturing investment in technological upgrading and technological progress and the direction of the guiding directory” in the 22 agricultural projects, agricultural enterprises should all be working for. The State Council Development Research Center of France, said Zhang, low-level redundant construction and low price competition is not conducive to China’s agricultural machinery industry.

Then the crisis often birth of a new era of scientific and technological revolution, our agricultural enterprises, especially the leading enterprise, we must seize the opportunity, only those with independent intellectual property rights of technology and products in order to be called agricultural power.

In addition to energy saving and emission reduction technologies and product development, the 2010 also in the market there are still many uncertainties. In the international market, in addition to a few countries, the agricultural market is still difficult to pick up. The domestic market, although the state to determine the amount of subsidies would also increase the purchase, but if the income of farmers increased unhappiness, operating farm machinery can not earn money, but also will affect the purchase initiative.

China Agricultural Machinery Industry Association at the annual meeting on this to remind the business, to increase the hot products, production capacity, improve product quality, improve product performance; active product structure adjustment, improve the output of high-tech products.

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Revo Heavy Industries to build national agricultural brand

Posted on 09 June 2010 by admin

Was born in Weifang, a shortage of land on the outskirts of the Foton Lovol International Heavy Industry Co., Ltd., an alarming rate, growth: 10 years, and has become the most valuable brand of agricultural equipment industry enterprises. In 2008, sales revenue 10 billion; products from a single harvester development to large and medium horsepower tractors, construction machinery, vehicles, three series; the market to expand from domestic to global 112 countries and regions.

“Enter a new area, the most important time.” Lovol Heavy Jin-Fu Wang, Chairman and CEO, said the Asian financial crisis on the end of the century’s industrial restructuring, agricultural equipment for the Revo into the area of heavy industry has brought a historic opportunity.

“Go first to the market after the construction of the factory.” Revo Heavy Industries to combine as a breakthrough in the agricultural equipment industry. Rely on the car’s strong technological advantage produced by combines, a listing on the subject sought after. 3 years later, sales jumped Revo Ceres harvester industry first, dominated the industry for 8 years, in 2008 nearly 70% domestic market share.

Foothold in the field after harvesting, Lovol rapid expansion of heavy industry to large and medium business again horsepower tractors, construction machinery, vehicles, the formation of agricultural equipment, construction machinery, vehicles, three complementary business interaction and coordinated development of the industrial structure.

Second half of last year’s global financial crisis appears in the Lovol Heavy Industries, is a rare opportunity. In response to the crisis, the state promulgated a series of expanding domestic demand, growth, policy measures, farm machinery purchase subsidy is one. Driven by the subsidy policy, Revo series of new sales booming heavy industry.

In 2006, Lovol Heavy growth began implementing a series of content initiatives. In 2007, it further “organic growth, restructuring, globalization,” development strategy. In the first half, high-tech new products on the contribution of corporate sales nearly 50%. From January to July, Lovol Heavy 9.5 billion sales revenue, profit and tax of nearly 5 billion yuan, up respectively 32.2% and 103.9%.

Access to harvesting machinery market, Lovol Heavy Industries is a latecomer, but through the establishment of new service standards and models, quickly recognized by the height of the market. “Tracking Service” is a great creation Lovol Heavy Industries. Involved in the field in 1998 when the harvester, combine harvester to cross-buying operations management, as many farmers the choice of effective working time is essential for users. To this end, Revo Heavy Industries to create a “tracking service” new model, to send teams to follow the cross to the fields harvesting operations services.

“Tracking Service” to Revo Ceres harvester fame. After the Revo Heavy service model innovation, from the tracking service to the large-scale services, family services, to information services and branding services, leading the realization of China’s agricultural equipment service levels 5 leap.

Brand of service to upgrade the core competitiveness of enterprises. In the domestic market, leading-edge marketing services, based on Lovol Heavy actively developing overseas markets. Has established a global marketing services for nearly 300 outlets, exports of 112 countries and regions. “Revo Heavy Heavy industry as a new force in the domestic obligation to undertake the task of building its own brand in China.” Jin-Fu Wang said.

Play “integration of knowledge, integration and innovation” model of efficiency, Lovol Heavy Industries with domestic universities, research institutions of Cooperation with Germany, Britain, Italy, the company set up four countries in the Quartet “of international technical body of strategic cooperation,” absorbing the world advanced technology.

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The overall development of the agricultural machinery industry, forecasts and opportunities

Posted on 06 June 2010 by admin

Development Trend Forecast

   China is an agriculture-based countries, agriculture’s position determines the importance of the agricultural machinery industry. In the next 10 to 20 years will be to modernize China’s agriculture an important period and also the great development of China’s agricultural mechanization, on another level a critical period, agricultural machinery will further accelerate the pace of development is expected by 2020, the National farming, planting, harvesting a comprehensive mechanization level to reach 70%. There is no doubt that the farm has provided a broad market space.

    In October 2008, 17 Third Plenary Session passed the “CPC Central Committee on promoting rural reform and development of a number of decisions on major issues” and reiterated the resolve of agriculture, rural areas and farmers, as the party’s work the highest priority to the agricultural The rapid development of a solid and strong and effective guidance and protection; May 12, 2009, “equipment manufacturing restructuring and revitalization plan” was promulgated, the country from policy to encourage capital investment, tax concessions and other aspects of support equipment development of manufacturing industries, reflecting the state of the agricultural machinery industry the unprecedented attention given to … … With a series of central government support for the “three rural” policy of increasing the degree bound for the agricultural development of industry and create a bright future.

    By 2015, China’s main agricultural products, technology and production levels will be close to the international well-known enterprise-level. Agricultural machinery industry worth over 250 billion yuan, up 25% compared with 2010. By that time, China will have a number of proprietary products and technologies; backbone enterprise equipment reached the international advanced level, 3 to 5 with strong international competitiveness of large enterprise groups has basically taken shape; export trade amounted to 9 billion U.S. dollars , accounting for 25% of industry sales. By 2020, total industrial output value of China’s agricultural machinery on an annual basis in 2010 is expected to increase by 50%, up to 3,000 billion yuan, China will enter the ranks of the world’s agricultural machinery manufacturing power.

    Opportunities

    1, the state promulgated a series of preferential agricultural policies supporting agriculture, especially in the Party’s Third Plenary Session of the 17 held so that a significant bearing on agricultural development in decision-making into the implementation phase, for the stable development of agricultural machinery industry provides a rare opportunity for development .

   2, the central economic work conference, should maintain a stable and rapid economic development as the economic work in 2009, the primary task, the state increase investment, to take 10 steps to boost domestic demand and at the same time implement a proactive fiscal policy and loose monetary policy appropriately, as well as Central Committee Document No. require further strengthening of preferential agricultural policies and increase investment, both for the development of agricultural industry to create a good opportunity for development.

    3, the state should continue to increase investment in agriculture and subsidies, in particular the 2009 purchase agricultural subsidies to 100 billion, will boost agricultural markets.

    4, rural infrastructure construction has brought great opportunities. One of China’s successful experience is to the economic slowdown, strengthening infrastructure, rural infrastructure construction is an important part of which is bound to drive tractors, farm vehicles, construction machinery and agricultural development.

    5, in order to achieve sustainable development of agriculture, grassland transformation, comprehensive utilization of straw and other devices will usher in a good opportunity for development.

    Conclusion: With the pace of building new socialist countryside in China’s advance accelerated national infrastructure projects at home and abroad to build an equal platform for interactive competition will enable the rapid development of domestic agricultural machinery, agricultural machinery, industrial equipment of agricultural ability, agricultural products continued scientific and technological content improve the development of China’s agricultural mechanization has laid an important material and technological base. Domestic agricultural enterprises in this case should be based on new trends in a timely manner to adjust development strategies, so that agricultural machinery industry has shown a new development situation, to promote the rapid development of China’s agricultural machinery industry.

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Agricultural Insurance – an Effective Control Mechanism for Non-performing Assets of District Central Co-operative Banks in India

Posted on 02 June 2010 by admin

AGRICULTURE INSURANCE – AN EFFECTIVE CONTROL MECHANISM FOR NON-PERFORMING ASSETS IN DISTRICT CENTRAL CO-OPERATIVE BANKS OF INDIA

All the agriculture plans projects and schemes are subjected to yield risks. As these are highly dependable to weather, monsoon, rainfall and other natural calamities the amount of risk is unpredictable. In India most of the agriculturists don’t have the awareness about the agricultural insurance plans and schemes provided by the Government in mitigating losses arising out of agriculture. If there is any loss due to natural calamities they demand only the writing off the agriculture credit availed. They don’t avail the mitigating mechanisms, which are readily available to protect them from unexpected losses. This article provides a basic knowledge about the available insurance facility to mitigate the risk in agriculture.

RISKS IN AGRICULTURE:

Five general types of risk are identified. They are:

1.Production risk – derives from the uncertain natural growth processes of crops and livestock.

2.Price or market risk – refers to uncertainty about the prices that will be received for commodities.

3.Finanacial risk – rising interest rates, the prospect of loans being called by lenders, and restricted credit availability are also aspects of financial risk.

4.Institutional risk – due to uncertainties accumulated by government actions.

5.Human or personal risk – refers to factors such as problems with human health or personal relationships that can affect the farm business.

Among agricultural insurance products, crop is considered as the most important category. Other types include cattle, poultry, equipments used for agriculture etc.

INSURABILITY UNDER AGRICULTURAL INSURANCE:

The agricultural insurance policy prescribes certain conditions regarding the insurability under the policy. These include:

1.The risks should cause economic loss to the farmer covered under the policy.

2.The loss can be expressed specifically in monetary terms.

3.The risk of loss in the future can be estimated by analyzing the past data’s.

4.The loss must not be minor or negligible.

5.The insured farmer should have the financial capacity to pay the premium amount or should be eligible for government assistance.

TYPES OF CROP INSURANCE SCHEME:

The various types of risks, which are covered under the policy, include loss of the crops due to:

Natural fire and lightning, Storm, hailstorm, cyclone, typhoon etc, Flood, inundation and landslide, Drought, dry spells, Pests/ Diseases etc.

CATEGORIES OF FARMERS COVERED UNDER THE SCHEME:

The category of farmers who are covered under the policy includes:

1.All farmers growing notified crops and availing seasonal agricultural loans from financial institutions are covered on a compulsory basis. This category is referred to as loanee farmers.

2. All other farmers growing notified crops who opt for the scheme are covered on a voluntary basis.

Sum Insured:

Farmers are also allowed to insure their crop beyond the value of the yield level.

LEVELS OF INDEMNITY:

The indemnity under the scheme varies based on the nature of risks. The scheme identifies three types of risks viz., low risk, medium risk and high risk. If the yield variation is 14 percent or less, it is considered as low risk. If the yield variation is between 16 to 30 percent, it is termed as high risk. Three levels of indemnity are available viz, 90%, 80%, and 60% for low risks.

CLAIMS SETTLEMENT UNDER CROP INSURANCE:

The claims arising out of losses under the national crop insurance schemes are shared by the implementing agency (Agriculture Insurance Corporation Of India) and the government proportionately. This sharing is done for a period of five years till the actuarial rates get implemented. In case of food crops and oilseeds, any claims beyond 100% of premium will be borne by the government. All normal claims, i.e., claims up to 150% of premium will be met by implementing.

SUM INSURED

Farmers are also allowed to insure their crop beyond the value of the yield level.

LEVELS OF INDEMNITY

The indemnity under the scheme varies based on the nature of risks viz, low risk, medium risk and high risk. If the yield variation is 14 percent or less, it is considered as low risk. If the yield variation is between 16 to 30 percent, it is termed as medium risk and above 30 percent is termed as high risk. Three levels of indemnity are available viz, 90%, 80%, and 60% for low risks.

CLAIMS SETTLEMENT UNDER CROP INSURANCE:

The claims arising out of losses under the national crop insurance scheme are shared by the implementing agency (Agriculture Insurance Corporation Of India) and the government proportionately. This sharing is done for a period of five years till the actuarial rates get implemented. In case of food crops and oilseeds, any claims beyond 100% of premium will be borne by the government. All normal claims, i.e. claims up to 150 % of premium will be met by implementing agency and claims beyond 150% shall be paid out of corpus for a period of three years. After this period of three years, claims up to 200% will be met by the implementing agency and any claims above this will be met out of corpus fund.

Implementing agency makes the settlement of claims in the case of normal losses for annual commercial or horticultural crops. This includes the claims up to 150% of premium in the first three years and 200% of premium there after subject to satisfactory claims experience. The claims beyond 150% of premium in the first three years and 200% of premium there after shall be paid out of corpus fund for a period of three years. After this period of three years, claims up to 200% will be met by the implementing agency and any claims above this will be met by out of corpus fund. Implementing agency makes the settlement of claims in the case of normal losses for annual commercial or horticultural crops. This includes the claims up to 150% of premium in the first three years and 200% of premium there after subject to satisfactory claims experience. The claims beyond 150% of premium in the first three years and 200% of premium thereafter shall be paid out of corpus fund. However, the period of three years mentioned for this purpose will be reviewed on the basis of financial results after the first year of implementation. The period will be extended to five years in case of necessity.

PILOT CROP INSURANCE SCHEMES

The first pilot crop insurance scheme was introduced in the year 1978-79. This scheme functioned till 1985 when the comprehensive crop insurance scheme was formulated. The nine states where the pilot schemes were implemented were Andhra Pradesh, Tamil Nadu, Madhya Pradesh, Bihar, Maharashtra, Assam, Karnataka and Rajasthan.

NATIONAL AGRICULTURAL INSURANCE SCHEME (NAIS)

(RASHTRIYA KRISHI BIMA YOJANA-RKBY)

The Objectives Of the Scheme:

Ø Provide insurance coverage and financial support to the farmers in the event of the failure of any of the notified crop as a result of natural calamities, pests & diseases.

Ø Encourage the farmers to adopt progressive farming practices, high value inputs and higher technology in Agriculture.

Ø Help stabilize farm incomes, particularly in disaster years.

RISKS COVERED

Under the scheme, comprehensive risk insurance is provided to cover yield losses due to non-preventable risks, viz.

a. Natural Fire and Lightning

b. Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane, Tornado etc.

c. Flood, Inundation and Landslide.

d. Pests/Diseases etc.

PREMIUM SUBSIDY

A 50% subsidy in premium is allowed for Small and Marginal farmers, which is shared equally by the Central Government and State or Union Territory Government.

PILOT SCHEME ON SEED CROP INSURANCE (PSSCI)

Objectives of the scheme:

Ø To provide financial security and income stability to the seed Growers in the event of failure of seed crop.

Ø To build confidence in the existing seed growers and stimulate participation of new growers to undertake seed production program of newly released hybrid/ improved varieties.

Ø To provide stability to the infrastructure established by the State owned Seed Corporations/ State Farms.

Ø To give a boost to the Modern Seed Industry to bring it under Scientific Principles.

The Compensation payable is on the basis of the graded scales are as follows:

Ø Failure of seed crop within one and half months of sowing and until the crop is harvested, the compensation will be 80% of the sum insured corresponding to the rejected area.

Ø Failure of seed crop after one and half month of sowing and until the crop is harvested, the compensation will be 80% of the sum insured corresponding to the rejected area.

Damages to the harvested seed crop due to operation of the above- mentioned perils while lying on the field but before removal from the field for transportation to the processing plant are covered under the scheme.

FARM INCOME INSURANCE SCHEME:

The objectives of the scheme are as follows:

Ø To provide financial support to farmers, in the event of loss in income from adverse incidence of Crop Yield (On account of natural calamities, pests and diseases) and Market Price fluctuations.

Ø To encourage the farmers to adopt prudent and progressive farming practices, both in terms of agricultural technology, and market economics.

Ø To enhance food and livelihood security of the farming community.

Ø To help stabilize farm incomes, particularly in diseaster years.

Sum Insured

The Sum insured is computed on the basis of Guaranteed Income per hectare:

Guaranteed Income (per hectare) = Average Yield of past 7 years * Indemnity Level * Minimum Support Price (MSP) or current year.

Premium Subsidy

Ø Small/ Marginal farmers: 75% of Premium

Ø Other farmers: 50% of Premium

RURAL INSURANCE SCHEMES: CATTLE INSURANCE

COVERAGE:

The insurance scheme is offered to protect owners of animals mentioned above from any natural hazards and to provide compensation to the owners of the animal when loss occurs. The insurance cover can be obtained by regularly paying small amounts called premium to the insurance company. Thus by taking a cattle insurance policy big losses befalling the few cattle owners are shared by the insurance company thereby protecting the owner.

SUM INSURED:

The sum insured depends upon the type of animal and breed such as cow, buffalo, local breed, pure breed or crossbreed. The sum also depends on the age, sex and health of animal.

POULTRY INSURANCE POLICY

Poultry means domesticated species of birds reared for eggs, meat or feathers and includes chicken, ducks, geese, turkey, etc. The poultry insurance policy provides indemnity against death of birds due to accident or diseases. The policy covers death due to fire, lightning, flood cyclone, earthquake, etc. The term poultry includes layers, broilers and parent stock.

PERSONAL ACCIDENT INSURANCE SOCIAL SECURITY SCHEME FOR POOR FAMILIES:

The scheme was introduced by the central government with a vision of rehabilitating poor families affected by death of its earning member who is not covered for compensation under any insurance scheme or any law/statute. The scheme was operated through GIC and its subsidiaries in co-ordination with the respective state governments. Now the public sector companies and state governments are handling the scheme. Initially it is introduced only in certain select districts.

SERICULTURE INSURANCE (MULBERRY SILKWORM CROP INSURANCE)

The scheme is applicable to univoltine/bivoltine/pure or hybrid races of mulberry silkworm crops. The scheme covers the worm from egg stage to cocoon i.e., from the time the eggs are purchased by the farmers till the cocoons are harvested.

MARKET AGREEMENT ON AQUACULTURE (SHRIMP) INSURANCE SCHEME

The Scheme is applicable to duly licensed arms or farms in accordance with the government notification growing brackish water shrimp/fresh water prawns by adopting extensive/modified extensive/semi-intensive system only.

HONEY BEE INSURANCE

The honeybee insurance covers beehives and/or colony belonging to cooperative societies. Bee colonies of Indian honeybee and Italian honeybee only shall be covered under the scheme. It covers accidental loss or damage to be hives and / or colony including terrorism. Paying an additional premium can also cover theft risk. The policy can be availed by co-operative societies, banks (for their members), loaners, units etc. The scheme provides both basic cover and additional cover. The Honeybee Insurance Policy will pay 80% of the claim amount by considering the total cost.

RABBIT INSURANCE

The insurance scheme is available for rabbits, which are aged between 3 months and 3 years. The premium is payable at 7% of the sum insured per annum.

ELEPHANT INSURANCE

Elephants are categorized in to temple elephant and others. Temple elephants include those aged between 5 and 60 years. The premium under this category is charged at 4.50% of the sum insured. The other category includes those aged between 5 and 60 years and above 60 and up to 65 yrs. The premium per annum is 5.00% and an additional premium of 0.5% is charged for each additional year.

SHEEP AND GOAT INSURANCE

The sheep and goat insurance policy coverage and other procedures are almost the same as that of the cattle policy. The sum insured and the indemnity amounts are same as the cattle insurance policy.

PIG INSURANCE

Poor people usually do pig rearing and thus the insurance policy assumes significance. In India, Uttar Pradesh is at the foremost position in the production of pork. The insurance coverage is available for those people who buy pigs under the IRDP schemes.

CAMEL INSURANCE

Insurance of camels assumes significance in places where they are used for different types of draught work. Camels are used for transportation purposes in hot, arid and sandy regions. One fourth of the world’s camel population is in India and thus the policy has significance in the country. The policy excludes all the common risks mentioned in the cattle insurance policy.

AGRICULTURAL PUMP SET INSURANCE

Agricultural pump set insurance policy is applicable to centrifugal pump sets and submersible pump sets. The maximum capacity of the pump set that is covered under the policy is 25 H.P. The policy gives cover only for those sets which are used for agricultural purposes and are made by approved manufacturers.

INDIAN AGRICULTURISTS POINT OF VIEW

1. The premium payable is not refundable. So they feel that it is a waste of money.

2. The government agencies do not educate them properly.

3. They feel that this is for the benefit of the government and the Insurance Companies only.

4. They feel that the premium payable is not affordable.

5. They feel that it is the responsibility of the government to clear off their losses.

6. They believe that the government will and should take up the responsibility every year.

7. They believe that the agricultural losses are impossible to mitigate.

So most of the borrowers of agricultural credit do not have the habit of repayment. It accumulates the overdue and ends in non-performing assets for the District Central Co-operative Banks (DCCBs) in India. In order to save the DCCBs the government agencies should come forward to educate the needs and uses of available agricultural insurance plans and schemes to mitigate their risks. All such facilities must me simplified and the premiums must be made affordable for the poor farmers. This will definitely reduce or share the risk of losses to both government and the poor agriculturists in India. “IT WILL BE AN EFFECTIVE MECHANISM TO CONTROL THE NON-PERFORMING ASSETS OF DCCSs IN INDIA”.

Dr.A.Oliver Bright, Dr.S. Maria John.

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