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This research was undertaken to better assess the role of mechanization in the future of smallholder farmers in Nepal. It addresses the knowledge gap about whether promoting mechanization that is often complementary to land can effectively support smallholders, particularly in the face of a growing nonfarm sector. Rising rural wages in Nepal have increasingly put pressures on smallholder farmers, who tend to operate labor-intensive farming. Agricultural mechanization through custom hiring of tractor services has recently been considered as an option to mitigate the impact of rising labor costs for smallholders. However, the benefit of agricultural mechanization may still be better captured by exploiting the economies of scale of medium to large farmers rather than smallholders. In the meantime, the Nepal agricultural sector still employs a disproportionate share of workers given its share in the economy, potentially depressing agricultural labor productivity. It is therefore an important policy question whether to (1) continue supporting smallholders through custom-hired tractor services or (2) encourage smallholders to rent their farms out to medium-size or larger farmers, while helping smallholders specialize in the nonfarm sector, where their labor productivity may be higher. Using samples from the Terai zone—one of the agroecological belts in Nepal, largely consisting of lowland plains— from the Nepal Living Standards Survey, we assess whether the benefits of hiring in tractor services are greater among medium to large farmers than among smallholders, and how these benefits may depend on smallholders’ decision to remain in or leave farming. This study also contributes to the impact evaluation literature by showing that jointly assessing the effects of two treatments (whether to adopt custom-hired tractor services and continue farming, or to search for better options and specialize in off-farm activities) can lead to different implications than assessing them separately. Our analyses suggest that the government should continue to promote custom-hired tractor services not only for medium to large farmers but also for smallholders. If, over time, barriers to specializing in nonfarm activities are lowered and more smallholders start leaving farming, mechanization may no longer benefit the remaining smallholders. Support for mechanization can then be focused more on medium to large farmers, while types of support other than mechanization can be devised for the remaining smallholders.
This framework presents ten interrelated principles/elements to guide Sustainable Agricultural Mechanization in Africa (SAMA). Further, it presents the technical issues to be considered under SAMA and the options to be analysed at the country and sub regional levels. The ten key elements required in a framework for SAMA are as follows: The analysis in the framework calls for a specific approach, involving learning from other parts of the world where significant transformation of the agricultural mechanization sector has already occurred within a three-to-four decade time frame, and developing policies and programmes to realize Africa’s aspirations of Zero Hunger by 2025. This approach entails the identification and prioritization of relevant and interrelated elements to help countries develop strategies and practical development plans that create synergies in line with their agricultural transformation plans. Given the unique characteristics of each country and the diverse needs of Africa due to the ecological heterogeneity and the wide range of farm sizes, the framework avoids being prescriptive.
Agricultural mechanization has often been characterized by scale-effects and increased specialization. Such characterizations, however, fail to explain how mechanization may grow in Africa where production environments are more heterogeneous and diversification of production may help in mitigating risks from increasingly uncertain climatic conditions. Using panel data from farm households and crop-specific production costs in Nigeria, we estimate how the adoption of animal traction or tractors affects the economies of scope (EOS) between rice, non-rice grains, legume/seed crops, and other crops, which are the crop groups that are most widely grown with animal traction or tractors in Nigeria. The results indicate that the adoption of these mechanization technologies is associated with lower EOS between non-rice grains, legume/seed crops, and other crops, but greater EOS between rice and other crops. An increase in EOS for rice is indicated in both primal and dual analytical approaches. Mechanical technologies may raise EOS between crops that are grown in more heterogeneous environments, even though it may lower EOS between crops that are grown in relatively similar environments. To the best of our knowledge, this is the first paper that shows the effects of mechanical technologies on EOS in agriculture in developing countries.
The manual work carried out by farmers and their families is often both arduous and time consuming and in many countries this is a major constraint to increasing agricultural production. Such day-to-day drudgery is a major contributoring factor in the migration of people, particularly the young, from the rural countryside to seek the prospect of a better life in the towns and cities. Farm production can be substantially increased through the use of mechanical technologies which both are labor-saving and directly increase yields and production. This document provides guidelines on the development and formulation of an agricultural mechanization strategy and forms part of FAO's approach on sustainable production intensification.
This publication gives a wide-ranging perspective on the present state of mechanization in the developing world, and, as such, constitutes a solid platform on which to build strategies for a sustainable future. Farm mechanization forms an integral plank in the implementation of sustainable crop production intensification methodologies and sustainable intensification necessarily means that the protection of natural resources and the production of ecosystem services go hand-in-hand with intensified production practices. This requires specific mechanization measures to allow crops to be established with minimum soil disturbance, to allow the soil to be protected under organic cover for as long as possible, and to establish crop rotations and associations to feed the soil and to exploit crop nutrients from various soil horizons. This work is the starting point to help the reader understand the complexities and requirements of the task ahead.
The future of smallholders in developing countries is becoming increasingly uncertain in the face of rising farm wages. The custom-hiring of tractors, in which tractor owners provide non-owner farmers with land preparation and transport services for fees, has spread among smallholders in Asia, including Nepal. However, estimating the adoption impacts of agricultural mechanization by smallholders is complex as we must also take into account smallholders' options to exit farming. We investigate this issue by applying multinomial logit inverse-probability weighting and sample selection panel data methods to data on smallholders in lowland Nepal. Our results are generally consistent with the hypothesis that smallholders who are likely to benefit more from adopting tractors are also more likely to exit farming. Where smallholders are less likely to exit farming, the use of tractors through custom-hiring may help smallholders on average to earn greater total and agricultural incomes. However, where they are more likely to exit farming, the ability of custom-hired tractors to sustain smallholder farming systems may become weaker. The results also offer insights into how the external validity of technology adoption impact evaluation may be affected in some settings.
Agricultural economics research paper presenting a framework for the economic analysis of the social implications and economic implications of agricultural mechanization in developing countries - specifies the major types of agricultural policy decisions in this field and the research needs for improving decision making, reviews selected economic studies on farm mechanization in terms of research methodology, etc., and makes suggestions for the redirection of research. Bibliography pp. 57 to 67.
Many previous publications on farm mechanization, draught animal power, hand tool technology, etc. have tended to be narrowly focused. The topic of farm power and mechanization also tended to be separated from the actual process of growing crops. This manual looks at putting the different sources of farm power, mechanization, machines, equipment and tools in a much broader context. Farm power requirements need to be viewed with reference to rural livelihoods and to farming systems as well as to the critical area of labour saving in HIV/AIDS-hit populations. No one particular type of technology is advocated.
A joint FAO and World Bank study which shows how the farming systems approach can be used to identify priorities for the reduction of hunger and poverty in the main farming systems of the six major developing regions of the world.