Against the background of COVID-19 and the changes unseen in the century, the Chinese government has vowed to maintain agricultural sector stability, continue to address the Three Rural Issues, promote rural revitalization, stabilize and boost agricultural production, steadily increase farmers' income, and improve the life quality of rural residents. To help the Chinese government fulfill its promises related to agriculture and rural areas, CDB Leasing ventured into the agricultural sector in early 2022. It closed its first farm equipment leasing deal, valued at over 1 billion yuan, in the first half of the year. According to the agreement, CDB Leasing has leased more than 1,400 pieces of farm equipment, including tractors, wheat harvesters, rice harvesters, corn harvesters, and rice planting machine, to more than 1,300 farmer lessees. The equipment will be used in summer growing and autumn harvesting seasons this year.
Financial leasing is the preferred way for farmers in developed countries to purchase farm equipment. It allows farmers to have full control of the equipment during the contractual period and buy the equipment when the leasing agreement comes to an end, which means farmers do not have to pay the full cost of the equipment up front. This arrangement not only reduce financial pressure of purchasing farm equipment for farmers but also empowers farmers to increase farming efficiency through use of equipment. In China, despite massive agricultural machinery production, Chinese farmers' purchasing power of agricultural machinery remains severely limited. The demand for farm equipment rentals is increasing. Although the financial leasing model has been widely used for the purchase of many types of large-scale equipment, there is still a shortage of financial leasing services in the farm equipment rental market.
CDB Leasing has entered a partnership with a leading farm equipment manufacturer in China. The two parties have combined their advantages in their respective fields to start a farm equipment leasing business, which seeks to effectively help farmers solve financial problems in purchasing farm equipment and thereby help them increase farming efficiency. In the future, CDB Leasing will expand cooperation with farm equipment manufacturers and other players in the agricultural market and increase support for rural revitalization and agricultural mechanization by offering affordable financial products.