The cost and benefits of mechanisation

Even if a piece of equipment mentioned above seems promising, each farmer must carefully evaluate the potential costs and benefits of investing in new machines or technology. Now that some mechanisation options have been presented, it may be useful for farmers to consider the following didactic exercise.

Equipment hire/rental

Another consideration for smallholder farmers may be equipment hire or rental from local service providers. Particularly for larger types, smallholder farmers are encouraged to consider machinery hire services at a fee rather than buying to own due to reasons of capital costs, running costs, need for shelter, need for expert operation and maintenance. Besides, not all equipment is used throughout the year. A growing number of innovative business models offering mechanisation services throughout the year and across villages and districts is another way to access farm power for smallholders.

Some of the key factors to consider for group ownership:

Cost of the equipment and initial capital outlay
Availability of all farmers to raise the required contributions
Availability of the equipment for purchase
Technical capacity of the group/group members to operate and maintain the equipment and machine
Group size, modalities to use and sharing in view of timing of critical operations such as land preparation, planting, harvesting, etc. Suitable communication channels and feedback loops are crucial in group ownership.
Accountability and responsibility in operating and maintenance
Disposal of the old equipment and replacement

Discussion on costs and benefits of mechanisation

Discuss the following questions regarding the costs and benefits of mechanisation:

What costs will change with the new mechanisation?
How will mechanisation improve the farm income?
Will it reduce production costs, increase harvests, improve produce quality, and save time to allow other types of income generation (e. g. a home garden, milk production, etc.)?