This　study　examines　the　effect　of　a　Targeted　Easing　(TE)　policy,　an　unconventional　monetary　policy　tool　initiated　by　the　Chinese　central　bank　to　reduce　reserve　requirement　ratios　of　agricultural　financial　institutions.　Utilizing　a　longitudinal　sample　of　Chinese　agriculture　companies　and　a　matching　sample　of　industrial　firms　between　2012　and　2017,　we　find　that　the　TE　policy　successfully　achieves　its　intended　policy　goal　to　boost　lending　to　the　agriculture　sector.　Results　from　our　difference-in-differences　estimations　indicate　that　loan　levels　of　agriculture　firms　increases　significantly　more　than　that　of　matching　nonagricultural　firms　under　TE　relative　to　the　non-TE　period.　We　also　document　heterogeneous　TE　effects　and　find　that　agricultural　firms　with　smaller　agency　costs,　larger　financing　constraints,　and　larger　loan　intensity　levels　benefit　significantly　more　from　a　TE　policy　than　their　counterparts.　In　addition,　the　TE　policy　effect　is　more　salient　during　a　contractionary　period　than　in　an　expansionary　period.　©　2020　Elsevier　Inc.