Farmers and agents in legal trouble for colluding over machinery subsides

Sixty-three farmers and two agricultural machinery agents in Central China’s Henan Province were recently sentenced for swindling over claiming machinery subsidies.

Since 2013, Niu Shujun and Meng Qingan, local machinery agents in Kaifeng, had applied for machinery subsidies worth 2.56 million yuan ($401,000) — for farmers who purchase equipment from their stores.

The case comes as China is offering more subsidies on farm machinery for maintaining food self-sufficiency as the rural workforce shrinks, but the tedious process of claiming subsidies has tormented farmers. Agents helping farmers apply for machinery subsidies are widely seen in agricultural provinces such as Henan and Shanxi, the Xinhua News Agency reported on Friday.

Niu and Meng usually sold farmers machinery at an post-subsidy price and would avail of the subsidy when it was given. They also helped customers not qualified for subsidies, apply using the ID cards of the farmers, who received 500 yuan in return.

The case is undergoing a second trial.

According to a farmer, surnamed Zhang, “it’s not difficult to get subsides but it’s so complicated.” For example, farmers, in Kaifeng’s Gulou district, need six stamps on their documents from six official departments and they are required to submit the invoice and other papers of the machinery to agricultural departments after the purchase, within a specified date. Agricultural department officials then pay a return visit.

Some lawyers argue that the agents did not act illegally since it is ultimately the farmers who enjoyed the benefits.

Chang Boyang, a lawyer from Henan Guidao law firm, said that government needs to allow agents helping farmers to apply for subsidies and crack down on those who seek the facility for people who are not eligible.