With so much agricultural subsidy funding available, why don’t you see a single cent of it? The reason is right here.
Release date:
2020-04-08
How to Apply for Agricultural Policies and Agricultural Funding
How do you apply for agricultural policies and funding? Perhaps around 80% of farmers encounter this issue when trying to claim subsidies—despite the fact that the government offers a wide range of policies covering every stage of agriculture, and local governments have even introduced their own tailored agricultural support programs specific to their regions. Yet, despite applying, most people ultimately fail to receive the assistance they’re entitled to.
Actually, there are many reasons why agricultural subsidies may not be received. Here’s a summary of the key points below for all farmers to consider:
1. Implement a project reserve system; establish a project reserve database
Before 2015, our country’s agricultural project applications largely followed a project reserve system with a rolling application process. This meant that a project database was established in advance, and each year high-quality projects were selected from the database for support. Any projects not chosen for funding in a given year would automatically roll over into the next year’s application cycle.
Although the national rolling application program was gradually phased out after 2015, project reserves still exist, and project databases remain in place across many provinces and cities. For instance, Shandong Province’s comprehensive agricultural development and industrialization projects for 2018 began pre-applying for project reserves as early as March 2017.
Typically, countries submit their agricultural development and industrialization projects only by the end of December, but in the meantime, provinces often prepare and pre-approve potential projects as a precautionary measure. That’s why some companies have reported: "I’ve already submitted my application for a year, yet the subsidy still hasn’t been approved." In such cases, it’s likely that your project is simply not yet selected from your province’s project reserve list.
To address this, companies should reach out to their local agricultural authorities to inquire whether there’s an ongoing project submission or reserve plan in your area. If there is, make sure to proactively include your company’s project in the queue—submitting it early will give you a better chance of being considered for funding.
So, if you’re planning to apply for any project, make sure to prepare your application materials—including the plan, feasibility study, and application report—well in advance. Don’t wait until the official documents are released before starting on your materials, because by then it’ll be too late! For instance, the National Development and Reform Commission announced the second batch of guidelines for establishing national demonstration parks focused on rural industry integration on March 22, 2019. Yet, the deadline for submitting applications was April 5—leaving just ten days to put together all the required documentation. Naturally, that’s nowhere near enough time to complete the application properly, which means you’d miss out on this valuable opportunity altogether!
2. Issues in Preparing Application Materials
When applying for funding support for agricultural projects, there are strict requirements for preparing the application materials. This includes specific guidelines on document formatting, font types and sizes, as well as the proper sequence for binding the documents. If these criteria aren’t met, the application will almost certainly fail the review process.
For instance, consider a company that simply used a flimsy folder to hold their submission materials. When the documents were forwarded from the local level, the order was completely disorganized—so much so that the reviewing experts couldn’t even make sense of them. Clearly, under such circumstances, how could the application possibly pass scrutiny?
Similarly, in some project applications, it’s explicitly stated that only Level-A qualified feasibility studies are acceptable. Yet, when the applicant submitted a Level-B report instead, the application was immediately deemed ineligible.
3. Have you followed up on the project applications?
When applying for agricultural subsidy funds, a complete application process includes receiving the notification, preparing the required documents, tracking the project submission, and undergoing project verification—far from simply submitting your materials and then waiting passively for the funds to arrive. Instead, you should proactively reach out to the relevant department to stay informed about the progress of your application and gauge how far along it is. Regularly monitoring the process ensures you’re up-to-date on developments and can address any issues promptly. Even if your application isn’t approved initially, it’s crucial to understand why—identifying exactly where things went wrong, determining whether additional documentation is needed, or assessing whether adjustments could improve your chances for future submissions. Moreover, during this tracking phase, if you spot any instances of government misconduct, you’re encouraged to report them to higher authorities; there are indeed numerous examples of such cases being successfully addressed this way.
4. Agricultural subsidy funds are limited—there are many applicants competing for a scarce resource, leading to intense competition.
It's a fact that agricultural subsidy funding in our country is steadily increasing—but it’s equally true that not many farmers actually receive these subsidies. Why is that? On one hand, although the government allocates substantial overall funds to agriculture, the amount directed toward individual projects tends to be quite small, leading to fierce competition during the application process. On the other hand, some of the agricultural subsidies are specifically designed to restructure the agricultural industry and drive broader sectoral growth. For instance, certain subsidies are earmarked for improving rural infrastructure, while others aim to stabilize agricultural product prices by supporting specialized initiatives that help balance the entire supply chain.
5. There is an asymmetry between enterprise-reported projects and locally funded support programs.
What does this mean? Well, even though the project you’re applying for is listed as a key priority for national policy support, it may not necessarily align with your local fiscal planning priorities. This creates an imbalance—or "project asymmetry"—between what’s nationally emphasized and what’s actually prioritized locally.
That’s why many people see the government highlighting specific agricultural projects as national priorities, yet when they check with their local authorities, they’re often told those projects aren’t part of the local agenda. In reality, it’s not that the projects don’t exist; it’s just that they don’t fit into your region’s unique development plans. And that’s precisely why getting them approved can be so challenging.
Agricultural development in our country varies by region, and each area has a distinct crop structure. As a result, the priorities for local support also differ. For instance, if your region plans to focus on supporting the planting industry, but you’ve chosen to develop animal husbandry instead, your application process won’t be as smooth as those focused on planting—and naturally, you’ll receive fewer funding resources compared to projects in the planting sector.
6. The issue of relying on personal connections when making declarations is also one of the factors affecting the success of the process.
As for how significant the impact is, opinions vary—some see it as minor, while others view it as more substantial. Those who believe that having connections guarantees access to project support shouldn’t be too rigid in their thinking either. After all, relying solely on personal relationships to secure subsidies often leads to trouble, as countless cases have shown. China is indeed a society deeply rooted in personal connections, where networking plays a crucial role. Yet, compared to the past, things have improved considerably today. Historically, government and business have always been closely intertwined. When it comes to developing agriculture at the local level, you’ll inevitably need to engage with these various departments. So, what exactly constitutes "relationships"? In reality, relationships are built through your own efforts—after all, no path exists from the start. Over time, as more people tread the same route, it naturally becomes a well-worn trail.
7. The company's own qualifications are unmatched by any other applicant company.
For example, imagine two companies applying for the same project—one is a leading enterprise or a model cooperative, while the other is not. In this case, the company that qualifies as a leader or model cooperative would have priority in securing funding support compared to the non-qualified firm.
Therefore, while businesses focus on their own growth, they must continuously enhance their organizational credentials by pursuing various certifications and striving to earn relevant accolades. Some enterprises or cooperatives may have been established for over a decade yet still fail to become recognized as local leaders. Naturally, when applying for subsidies under identical conditions, these companies would inevitably find themselves at a disadvantage!
Now that you know how to apply for agricultural subsidies, which departments or specific divisions should you approach for the most helpful guidance?
To apply for agricultural subsidies, you can contact your local Agricultural Bureau, Agricultural Office, Finance Bureau, Comprehensive Agricultural Office, Tourism Bureau, Science and Technology Bureau, Forestry Bureau, or the National Development and Reform Commission. All of these departments offer annual application opportunities. Most projects fall within the funding range of 200,000 to 600,000 yuan, though central government-funded initiatives typically involve budgets ranging from several million to over ten million yuan.
You can also reach out to the Water Resources Bureau, Environmental Protection Bureau, Old Area Poverty Alleviation Office, and the Bureau of Economy and Trade, among others. These projects typically involve smaller funding amounts—most range from 50,000 to 200,000 yuan.
Depending on the specific project, you’ll need to carefully select the department and section that best match your needs. Below, we’ll introduce some key departmental functions for your reference—please note that departmental structures may vary by region.
1. Operations and Management Division
This department primarily focuses on guiding the establishment of farmer-focused cooperative economic organizations. In the future, when the government allocates subsidy funds to support cooperatives, priority will be given to demonstrating model cooperatives. In other words, if your cooperative doesn’t earn the prestigious "demonstration cooperative" designation, your chances of successfully applying for government policies in the future won’t be very high. To apply for the demonstration cooperative status, many tasks require direct communication with the Department of Operations and Management. In some regions, a dedicated management station may even be set up—this department would also be responsible for overseeing the overall development of cooperatives.
2. Market and Economic Information Division
This department is primarily responsible for implementing the "Vegetable Basket Project." So, if you have any questions about the project or aren’t familiar with it, feel free to drop by this department for guidance. Additionally, if you’re considering applying for the Vegetable Basket Project, be sure to maintain open communication with this team.
3. Office of the Leading Group for Poverty Alleviation and Development
We usually refer to it as the "Poverty Alleviation Office," which is primarily responsible for allocating, managing, and overseeing poverty-fighting funds and programs. In the past two years, poverty-fighting funding has steadily increased, with most projects now supporting either businesses or cooperatives. If you're looking to apply for poverty-alleviation funds, simply approach the Poverty Alleviation Office directly—currently, even county-level offices can approve these projects, eliminating the need to submit them for approval at the city or provincial level.
4. Agricultural Industrialization Office
It is primarily responsible for recommending and applying on behalf of leading agricultural industrialization enterprises at the provincial and municipal levels, as well as for the initial selection and submission of agricultural industrialization projects. General enterprises and cooperatives are encouraged to establish strong communication mechanisms with this department.
Additionally, since many agricultural projects today involve the integrated development of primary, secondary, and tertiary industries, subsidy applications are no longer limited to the agriculture sector—indeed, you can consult with virtually any department that comes to mind.
Conditions that enterprises must meet when applying for funding for agricultural comprehensive development projects:
① The applicant organization must have legal status, be registered with the Administration for Industry and Commerce, possess a business license, and hold a code certificate, among other requirements.
② has been in operation for more than two years, consistently profitable, possesses a certain scale and strength of business, and demonstrates robust financial capabilities.
③ has maintained a funding-to-debt ratio of 95% or lower over the past two years and holds an A-level bank credit rating.
④ features products with high technological content, significant market potential, and clear competitive advantages. This is primarily evident in the feasibility study reports provided by the company.
⑤ is strong in mobilizing farmers and has established a close, rational mechanism for sharing benefits with them;
⑥ is establishing a business mechanism that meets the requirements of a market economy;
⑦ indicates that the company is financially healthy and capable of ensuring repayment of the government-funded loan using its own profits. In other words, after borrowing the funds, the company can generate enough profit to repay the loan.
Agricultural product processing enterprises face numerous project application requirements and require significant funding, so companies with the necessary resources should consider investing in some deep-processing projects—though these investments can be relatively smaller. Importantly, this project must provide the primary materials to meet the application criteria.
① Basic information about the applicant organization for the leading industrialization project, including its legal entity, address, phone number, balance sheet, assets, and more.
② Prepare a feasibility study report for a single project;
③ The project's recent audit report;
④ Land use approval document for the project construction;
⑤ Must have an environmental assessment opinion from the environmental protection department;
⑥ Preliminary assessment comments from the expert on this project;
⑦ The funding amount for the declared industrial project.
To apply for the title of Demonstration Enterprise for Agricultural Product Processing, companies must meet the following criteria:
Enterprises whose primary business is agricultural product processing (including grains, oils, fruits & vegetables, livestock products, aquatic products, and specialty agricultural items), and which have independent legal status—must achieve annual sales revenue of agricultural processing products exceeding 50 million RMB, accounting for more than 70% of their total sales; have maintained a spotless record regarding quality, safety, and hygiene incidents over the past three years; possess a well-established quality management and quality control system, certified either by ISO9000 or HACCP; and ensure that the company’s return on total assets consistently surpasses the prevailing bank loan interest rates during the same period.
Corporate asset-to-liability ratios generally remain below 60%; the company holds a bank credit rating of AA or higher; it has clearly demonstrated its ability to boost farmers' incomes. During agricultural product processing, the company sources over 75% of its required raw materials domestically—either through contractual agreements, equity investments, or collaborative partnerships (with domestic soybeans accounting for more than 50% of these domestically sourced ingredients). Additionally, the company’s products are industry-leading, featuring high overall raw material utilization rates, and its flagship products achieve a sales-to-production ratio exceeding 90%.
Although the subsidy policies may seem complex at first glance, they become quite straightforward when carefully categorized—into preferential policies, general subsidies, and targeted support programs. For each policy category, though, it’s crucial to tailor your approach accordingly to ensure success. The government’s agricultural subsidy programs are substantial, with an increasing number of initiatives and ever-growing financial allocations. As a result, farmers should keep a close eye on available subsidies and act promptly to apply for those that are relevant—and don’t miss out on opportunities that could significantly benefit their operations!
Tags:
Recommended News
Unit Name:
Le Shou Agricultural and Pastoral Group Co., Ltd. – Hebei Branch
Service hotline:
0317-4600668
Contact address:
Xian County, Cangzhou City, Hebei Province
Official Account
Business license