"Chairman Zhao, the slow development of the domestic agricultural machinery market is largely due to the fragmented nature of rural land, with small-scale family contracting making it difficult to achieve large-scale operations. Naturally, this makes it difficult to incentivize farmers to adopt mechanized production." Zhou Yue explained to Zhao Ye the difficulties that Galaxy Agriculture Company faces in developing agricultural machinery.

Upon careful consideration, Zhao Ye realized that it was indeed true. Nowadays, a rural family owns relatively little and scattered land, so there is absolutely no need to spend a lot of money to purchase agricultural machinery.

Zhou Yue continued, "However, the opportunity for the development of mechanized agriculture has arrived! Nowadays, with more and more rural people going out to work, the rural labor force is becoming increasingly insufficient, and fields are gradually being abandoned. At this time, if the country can introduce a land transfer policy, allowing farmers who have land contract management rights to transfer their land management rights or land use rights to other farmers and enterprises, it can transform land management from fragmented to large-scale management, and increase farmers' enthusiasm for adopting mechanized production."

Upon hearing this, Zhao Ye's eyes lit up.

In the future, with the deepening of the aging of the rural labor force and the continuous improvement of land transfer policies, the proportion of large-scale agricultural production will further increase, creating favorable factors for the development of the agricultural machinery industry.

However, is the government able to introduce a land transfer policy now?

Zhao Ye couldn't handle this situation.

We still need to have Uncle Xiao Yuliang sound out the higher-ups.

"I'll have someone sound out the land transfer policy. Anyway, our Yinhe Agriculture Company has only just entered the agricultural machinery field and doesn't have any products yet, so there's no need to use a lot of resources to actively promote this policy for the time being."

Although the rural labor force has decreased, it is not in short supply, and there are still many rural people farming at home.

Rural people are simple, frugal, hardworking, and would rather work hard themselves than spend money on expensive agricultural machinery.

A few years later, when all rural people realize that working outside the village earns much more than farming at home, then young and middle-aged men and women in rural areas will all go out to work, leaving the elderly to do farm work in the countryside.

For a long time to come, Galaxy Agriculture will likely primarily sell affordable small-scale agricultural machinery for home use, a product that should have a huge market in China's vast rural areas.

The market for large agricultural machinery isn't nonexistent, but it's very small.

Unless Galaxy Agriculture Company itself contracts land and operates on a large scale, large agricultural machinery can only be produced and sold by itself.

Zhao Ye felt this wasn't a big problem. It was 1996 now, unlike the early days of reform and opening up; "sensitive issues" were no longer sensitive. If Yinhe Agriculture Company were to contract land for operation, the government would definitely give it the green light.

(End of this chapter)