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The capacity problems of agricultural machinery(tractor in China) industry is more complex, and the outstanding performance is the absolute surplus and the relative lackness are intertwined with the relative lackness.
The author thinks,the solution of agricultural industry overcapacity is four points: one is through market competition, optimize the industrial structure, eliminate backward production capacity; second point is through the transfer of solution, which accelerate the expansion of overseas markets, the excess capacity to shift to developing countries; the third is through the promotion of energy emission standards and other related measures, eliminate a number of backward production capacity, optimize the industry structure of agricultural machinery manufacturing(tractor manufacturer); the fourth is to resolve the production organization structure adjustment.
To solve the relative shortage of production capacity, mainly through the following measures: first, strengthen the protection of intellectual property rights infringement, and gradually eradicate the soil, to encourage enterprises to innovate; secondly, increase research investment, supporting a number of innovative ability of the enterprise; second, through the adjustment of the policy of agricultural subsidies, guide enterprises to enter the agricultural weak blue ocean areas.