Criteria for Determining Working Area and Operating Cost for Long-Term Lease of Agricultural Machinery

Abstract

Purpose: This research suggests a method of establishing criteria for working area and operating cost for a long-term lease of agricultural machinery. Methods: Eight crops were selected-three food crops and five open-field vegetables-and agricultural machines used for sowing, transplanting, and cultivation in dry-field farming were analyzed. Results: The break-even acreage for agricultural machinery under a long-term lease was found to differ by agricultural machine, ranging from 1.0 to 5.8 ha. In terms of arable land area, the break-even acreages for harvesting machinery and transplanters were 15.6 to 26.1 ha and 6.1 to 8.6 ha, respectively. The working area lessees should secure was divided into two cases: (1) 2.0 to 11.6 ha when leasing individual agricultural machines (sowing and transplanting) for a long-term period, and (2) more than 10 ha when farmers who cultivate beans, potatoes, garlic, onions, and so on lease sowing and transplanting machines as a set. When agricultural machinery was leased for a long term, the operating cost and working time were reduced by 27.6 to 74.4% and 2.5 to 21.6%, respectively, indicating considerable effect. Conclusions: A long-term lease project needs to be promoted to overcome the limitation of short-term leases of agricultural machinery. The local government should lead this project and facilitate the mechanization of dry-field farming. The department in charge of agricultural machinery lease projects needs to set the working area to cover the rate and maintenance cost for farmers who lease agricultural machinery for the long term.