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No. 1 central document Pushes Green Transformation: Organic fertilizer subsidies will increase by 30% in 2025, and biological fertilizer will become the main alternative

2025-09-09

1、 Policy background and subsidy direction
The No. 1 central document of the Central Committee of the Communist Party of China (CPC) on the strategy of green transformation of agriculture made it clear for the first time in the name of policy to "name" and promote Organic Fertilizer, raising it to the strategic height of "strengthening agricultural science and technology support", marking the fundamental transition of China's agricultural production mode from chemical dependence to ecological cycle. The goals include: reducing soil degradation caused by excessive use of fertilizers, improving the quality of arable land (increasing crop stability by 3% to 5% for every 1 ton/hectare increase in soil organic matter), and building a crop breeding cycle system (such as the resource utilization of livestock and poultry manure).
Expansion of subsidies and increased funding support for traditional subsidies: existing subsidy policies such as stable farmland fertility protection subsidies and subsidies for corn and soybean producers provide guarantees for farmers' basic planting income. Newly added special loan interest subsidy pilot for grain and oil planting, effectively reducing the financing costs of farmers in the process of grain and oil planting through interest subsidies, and alleviating financial pressure. Subsidies for scrapping and updating agricultural machinery: Expand the coverage of subsidies to include equipment that conforms to the direction of green agriculture development, such as crop protection drones and agricultural Beidou systems. Raise the subsidy standards, and increase the maximum subsidy for scrapping and updating agricultural machinery by 50% compared to the past, further incentivizing farmers to eliminate old agricultural machinery and replace advanced equipment. Central government tilt: In 2024, the central government has allocated over 1.8 trillion yuan in agricultural support funds, providing solid financial support for agricultural development. In 2025, it will further support the renewal and development of organic fertilizer production facilities, smart agricultural equipment and other fields with the help of "ultra long term special treasury bond", and help the process of agricultural modernization.
The following table summarizes the main agricultural subsidy policies in the No. 1 central document in 2025:

2、 The strategic position of organic fertilizers and biological fertilizers
The outbreak of policy driven industries was driven by the clear "roll call" of the No. 1 central document, and the development track of organic fertilizers has changed significantly - from the stage of relying mainly on the spontaneous regulation of the market in the past, to a new stage strongly led and driven by national policies. Local practice acceleration: Taking Lianjiang County in Fujian Province as an example, the local centralized treatment of livestock and poultry manure not only achieved an annual output of 30000 tons of organic fertilizer, but also increased the utilization rate of manure resources to over 95%; On this basis, farmers can also receive these organic fertilizers for free for agricultural production, forming a vivid example of the combination of policy implementation and actual benefits.
Market potential and substitution space: The global organic fertilizer market is expected to exceed 300 billion US dollars by 2030, but China's current factory consumption is less than 10% of the total resources, indicating huge substitution space. The policy requires improving the level of resource utilization of Agricultural Waste and promoting the large-scale production of commodity organic fertilizers.

3、 Policy implementation and implementation challenges
Cost and promotion bottleneck cost disadvantage: The price of high-quality organic fertilizers is significantly higher than that of traditional fertilizers, and promotion in field crops relies on subsidies. Insufficient technological support: Efficient application of organic fertilizers, while the coverage of smart agricultural machinery in rural areas still needs to be improved.
There is a gap between industry standards and awareness, and there are inferior products in the market that affect the trust of farmers. It is necessary to strengthen quality standards and farmer training. The policy clearly requires the establishment of a monitoring system for farmland planting purposes, to prevent "non grainization" and ensure that organic fertilizers are used for grain production. The following table summarizes the challenges and response strategies in promoting organic and biological fertilizers:

4、 Action Suggestions
Short term focus on applying for special subsidies: pay attention to policy windows such as improving public services in grain producing counties and updating scrapped agricultural machinery (such as crop protection drones). Participate in resource utilization projects: Breeding enterprises can collaborate with the government to build manure treatment centers and obtain subsidies for organic fertilizer production.
Long term layout technology cost reduction: Developing low-cost fermentation processes (such as nanofilm technology) and utilizing agricultural waste to reduce raw material costs. Industry chain integration: Fertilizer enterprises extend downstream and provide a package solution of "organic fertilizer+intelligent irrigation+agricultural technology services", which meets the policy requirements for new agricultural productivity.

5、 Opportunity Summary
Policy dividend convergence period: Organic fertilizer promotion, low altitude economy (unmanned aerial vehicle plant protection), and smart agriculture are listed as the three major directions of agricultural new quality productivity, and subsidy resources continue to tilt.
New market for Carbon Reduction: The organic fertilizer industry has been included in the agricultural and rural carbon reduction and fixation system, and may be connected to the carbon trading market in the future.
International competition track: The penetration rate of organic fertilizers in Europe and America exceeds 30%, and China needs to seize the global green agriculture highland through policy and technology dual wheel drive.
The policy dividend has laid the track for the green transformation of agriculture, but the transformation from the "organic fertilizer boom" to actual benefits still needs to cross two key thresholds: enterprises need to reduce production costs to within 1.5 times that of chemical fertilizers through process innovation (currently about 2-3 times), and farmers need to master the precise application technology of organic fertilizers combined with soil testing formulas. With the support of subsidies from the central and local governments, market entities that have broken through cost bottlenecks and established technological advantages will be the first to enter this blue ocean of green agriculture.