Promoting the Economic Sustainability of Small-Scale Farmers Through Versatile Machinery in the Republic of Korea

Abstract

The increasing use of tractors and implements is replacing manual labor, but adds financial burdens on small-scale farmers due to rising costs. Many farmers have turned to leasing and renting machinery to mitigate these expenses, while repair and maintenance costs remain significant. Government interventions aim to alleviate these burdens, but income disparities between urban and rural areas persist, and the impact of machinery use on climate change and the environment poses further challenges. Strategies like omitting some operation steps and adopting versatile machinery are proposed to cut costs and promote economic sustainability for small-scale farmers. Therefore, this study assessed the economic benefits of using versatile machinery in farming, especially for small-scale rural farmers. Farming processes were divided into field preparation and crop season activities. Field preparation included rotary tillage, ridge formation, and mulching, whereas crop season activities included harvesting and transportation. Annual usage and production cost analyses per hectare, including labor, fuel, and interest, alongside purchasing cost surveys, were conducted. Versatile machinery reduced annual usage costs for field preparation and crop season activities by 63.54% and 71.71%, respectively. This effect was more pronounced for farms under 2 ha, especially those employing manual harvest and transportation. Small-scale farmers, such as those cultivating hot pepper farms, are strongly encouraged to adopt versatile machinery to mitigate expenses and labor costs. The significance of adopting studied methodology will be amplified with the rising cost of labor. Consequently, utilization of versatile machinery in field farming for small-scale farms is projected to increase incomes not through enhanced production, but by significantly reducing the annual usage costs associated with agricultural machinery. This approach not only alleviates financial burdens but also enhances the sustainability of farm management, ensuring long-term viability and environmental stewardship.