Regional classification of subsidy for purchasing agricultural machinery based on cluster analysis

In order to enhance the effect of subsidy for purchasing agricultural machinery, and allocate the subsidy resources reasonably in China, it was proposed to improve the subsidy policy for purchasing agricultural machinery by studying regional classification. In this paper, grain production capacity, economy level, purchasing ability of farmers and natural conditions were considered to be the four main factors that influence the regional classification, and grain production, per capita GDP, per capita net income of farmers, and the proportion of mountain area were selected as the indicators. The subsidy for purchasing agricultural machinery was classified by using Q-type Hierarchical Cluster Analysis, and the whole 31 provinces were classified into four types of regions based on qualitative adjustment. Policy suggestions on optimization of the subsidy for purchasing agricultural machinery were proposed in the aspects of amount and structure of the subsidy, the type of agricultural machinery and subsidy standards based on regional characteristics and the current status of agricultural mechanization.