Farm Machinery Hire Services for Small Farms in Kampar Regency, Riau Province, Indonesia

Abstract

<abstract><title><italic>Abstract.</italic></title> Small farmers in the Kampar Regency are dependent on farm machinery hire services for their farm operations. This study aims to provide an understanding of the management procedures of hire services groups and to determine the seasonal working areas and custom rates of machinery hire services managed by farmer groups. Twenty groups offering custom hiring services in seven districts of the Kampar Regency were visited during the rainy season in 2012, and group managers, mechanics, and operators were interviewed to collect field data. The results showed that these groups comprised 3-11 farmer groups, which in turn comprised 15-25 farm owners each. Each group had a simple organizational structure and managed one or more farm machines of various manufacturers and types. The number of machines owned by each group was not sufficient to deploy across the entire coverage area owned by the group members. The seasonal working area is small due to the limited number of machines owned, short working days per season, small paddy field areas, and low working capacities. The custom rates varied across groups depending on the type of machine and operation, land conditions, and the distance between the field and the hire services center. Suggestions for improving the operational performance of hire services groups have been proposed.