On 26 February 2026, the Ministry of Agriculture and Rural Affairs (MARA) of China released a notice on China’s agricultural equipment upgrade policy. The policy aims to strengthen financial support for equipment upgrading and technological transformation in agriculture and rural sectors. It follows earlier policies issued by the People’s Bank of China and several ministries establishing special re-lending facilities for technological innovation and equipment upgrading, as well as fiscal interest subsidies for equipment-upgrade loans, 2026. Here are the key highlights:
1. Policy intent
The policy aims to increase financial support for upgrading equipment and technologies in the agricultural sector. It is designed to:
- Promote modernization, digitalization, and green transformation of agriculture.
- Expand effective investment in rural and agricultural infrastructure.
- Support technological upgrading and replacement of outdated equipment.
- Improve productivity, sustainability, and efficiency across farming, livestock, fisheries, food processing, and cold chain logistics.
The policy integrates two major national financial tools:
- Equipment upgrade relending facility from the central bank.
- Central government interest subsidies for equipment upgrade loans.
Together, these instruments aim to mobilize bank lending toward agricultural modernization projects.
2. Financing amount, interest support, and banks involved
Loan facility size
The People’s Bank of China (PBoC) provides an equipment upgrade relending facility totaling RMB 1.2 trillion (about USD 165 billion) to support eligible projects.
Interest subsidy
The central government provides an interest subsidy of 1.5 percentage points on the principal of eligible fixed-asset loans.
- Subsidy duration: up to 2 years
- Banks collect the interest and the government reimburses the subsidized portion.
- There are a total of 26 banks participating in the new loan policy, amongst them some of China’s major national policy and commercial banks, including:
- China Development Bank
- Agricultural Development Bank of China
- Agricultural Bank of China
Five systemically important city commercial banks also participate. They include:
- Bank of Beijing
- Bank of Shanghai
- Bank of Jiangsu
- Bank of Nanjing
- Bank of Ningbo
Projects approved by MARA are sent to these banks for lending.
3. Supported technologies, equipment, and farming methods
The loans support equipment upgrades and technological modernization across multiple agricultural sectors. All the equipment purchases should follow “Agriculture Machine Category” Standards NY/T1640-2021.
Agricultural machinery
- Replacement of old farm machinery
- Machinery eligible under China’s agricultural machinery subsidy programs, which was listed on NDRC website (see here)
- Equipment for recycling and dismantling retired machinery
Facility agriculture
Includes modern greenhouse and livestock systems
Crop production
- Smart greenhouses
- Automated irrigation and fertigation
- Environmental monitoring systems
- Precision climate control
- Mechanized operations
- Smart farm management systems
Livestock
- Modern animal housing and fencing
- Automated feeding systems
- Environmental control systems
- Disease prevention systems
- Manure treatment systems
- Smart livestock management platforms
Fisheries
- Recirculating aquaculture systems
- Water treatment and monitoring
- Automatic feeding systems
- Smart inspection and oxygenation equipment
- Upgrading traditional fish cages and aquaculture facilities
Smart Agriculture
- Agricultural IoT sensors
- AI-based farm management
- Precision agriculture equipment
- Autonomous agricultural machinery
- Digital farm management systems
- Agricultural data platforms
Cold Chain Logistics
- Cold storage modernization
- Pre-cooling, freezing, and refrigeration equipment
- Energy-efficient refrigeration systems
- Digital warehouse and logistics management
- Smart cold chain monitoring platforms
Grain and Oil Processing
- Equipment for milling, drying, pressing, refining, and packaging
- Upgrading grain processing facilities
- Oilseed processing technologies
Circular Agriculture / Waste Recycling
- Plastic mulch recycling equipment
- Straw collection and processing machines
- Biogas and biomethane production equipment
- Livestock manure treatment systems
- Organic fertilizer application systems
Fishing Vessels
- Modernization or replacement of deep-sea fishing vessels
- Safety, environmental, and monitoring equipment
4. Access for domestic and foreign companies
Companies do not apply directly to the central government. Instead, they access the program through project-based financing.
Process
- Enterprises propose equipment upgrade or modernization projects.
- Projects are submitted to the Agriculture and Rural Affairs Financing Platform (see here).
- Local agricultural authorities review and approve projects.
- Approved projects are placed on a national project list.
- The project list is sent to participating banks for lending.
Eligible business entities
- Agricultural enterprises
- Cooperatives
- Agribusiness processors
- Cold chain logistics companies
- Aquaculture operators
- Agricultural technology companies
Foreign companies
- Can participate if they operate in China through:
- joint ventures
- subsidiaries
- equipment supplies to approved projects
- technology partnerships
Foreign firms therefore benefit indirectly as technology or equipment suppliers.
Key takeaways and implications
This policy represents a large-scale financial program aimed at modernizing China’s agricultural sector. It combines a RMB 1.2 trillion central bank relending facility with government interest subsidies and lending through 26 participating financial institutions.
Foreign companies cannot access these loans directly. However, they may benefit indirectly by supplying equipment or technologies to approved projects, operating through joint ventures or China-based subsidiaries, or cooperating with eligible Chinese partners. In practice, access to preferential financing often depends on provincial implementation rules and on whether specific equipment types are included in China’s agricultural machinery subsidy catalogues. For international suppliers, maintaining eligibility therefore requires product registration and testing, as well as ongoing engagement with relevant Chinese authorities.
Technologically, the policy prioritizes areas such as precision agriculture, smart livestock systems, automated irrigation and fertigation, digital farm management platforms, cold chain logistics, and circular agriculture technologies—fields in which foreign, including German, suppliers continue to have competitive strengths. At the same time, the strong emphasis on digital agriculture, AI-enabled farm management, and agricultural data platforms reflects China’s growing focus on integrated smart farming systems, where domestic technology companies are becoming increasingly competitive.
Sources
Ministry of Agriculture and Rural Affairs (MARA). 2026. Notice on strengthening financial support for agricultural equipment upgrading and technological transformation projects. March 2026.
