According to the notice issued by the Henan Provincial Development and Reform Commission and the Henan Provincial Department of Finance in March 2025 on the implementation plan for large-scale equipment renewal and replacement of old consumer goods in Henan Province in 2025, the goal has been clearly defined: by the end of 2025, strive to complete the scrapping and updating of 18,000 sets of agricultural machinery, covering the entire chain of farming, management and harvesting, and make up for the shortcomings in the post-production processing link.

In order to further expand the scope of scrapping subsidies, increase the scrapping subsidy standards for some machinery, promote the scrapping and updating of old agricultural machinery, and accelerate the structural adjustment of agricultural machinery, the Henan Provincial Department of Agriculture and Rural Affairs, the Provincial Development and Reform Commission, the Provincial Department of Finance, and the Provincial Bureau of Grain and Material Reserves recently jointly issued the "Notice on the Implementation of the 2025 Agricultural Machinery Scrapping and Update Subsidy Policy" (Yu Nong Wen [2025] No. 218). Compared with 2024, the scope and standard of agricultural machinery scrapping subsidies in 2025 have been adjusted. The notice clearly states that the implementation period of the policy of expanding the scope of scrapping subsidies and raising the subsidy standard is from January 1 to December 31, 2025.

The scope of scrapping subsidies has been expanded to 25 types of machinery

On the basis of the original 13 types of scrapping and renewal subsidy machinery, 12 new types of agricultural machinery have been included in the scope of scrapping and renewal subsidies. The scrapping and renewal subsidy machinery and equipment have been confirmed to include: tractors, combine harvesters, seed drills, rice transplanters, feed crushers, corn threshers, hay cutters, agricultural Beidou assisted driving systems, balers, peanut harvesters, self-propelled disc green fodder harvesters, grain (grain) dryers, self-propelled crawler rapeseed harvesters, rice seedling throwers, field operation monitoring terminals, plant protection drones, color sorters, mills, rotary tillers, straw crushers, micro-tillage machines, farm management machines, plows, corn harvesting special headers and fruit and vegetable dryers, a total of 25 types of machinery and equipment.

Scrapping subsidy standards increased by 50%

The scrapping subsidy amount for various scrapping and renewal subsidy machinery and equipment shall be implemented in accordance with the "List of Scrapping Subsidies for Agricultural Machinery in Henan Province in 2025". Among them, if the rice transplanter is scrapped and a new one of the same type is purchased, the scrapping subsidy standard will be increased by 50%; if the agricultural Beidou assisted driving system is scrapped and updated, the scrapping subsidy standard will be increased by 50% on the basis of the scrapping subsidy amount in 2024; the scrapping subsidy standard for field operation monitoring terminals and plant protection drones will be increased by 50%. The scrapping subsidy application for the three types of machinery, Beidou assisted driving systems, field operation monitoring terminals, and plant protection drones, must be based on the purchase of new machinery of the same type. 

At the same time, in terms of funding arrangements, it has been determined that the ultra-long-term special treasury bond funds used for agricultural machinery scrapping and renewal subsidies in 2025 will be implemented according to the principle of "first come, first served, until the funds are exhausted".

In general, vigorously implementing the agricultural machinery scrapping and renewal subsidy policy has a positive role in "accelerating the upgrading of agricultural machinery equipment, optimizing the industrial structure, driving the transformation of agricultural intelligence and precision, ensuring food security and the supply of important agricultural products, reducing the burden on farmers and promoting income growth", but it also faces many risks and challenges, such as:

Fund redemption efficiency: The "first come, first served" mechanism may cause funds to be exhausted in advance, and some farmers will miss subsidies.

Policy implementation loopholes: There may be risks of fraud and subsidy, and it is necessary to prevent "multiple reports for one machine" and "small as big", and it is necessary to strengthen the verification of the disassembly link.

Regional imbalance: The renewal rate in the plain area of eastern Henan is high, while the mountainous area of western Henan is slow to update small agricultural machinery due to terrain restrictions.