Abstract
In the context of south Asia, There is enough support for suitable agricultural machinery for small farmers. These kind of agricultural machineries can improve the return of investment in land and labor, although large capital investments are still required that can impede ownership. The growing demand for machinery has resulted in comparatively more developed rental marketplaces for irrigation, tillage and other post-harvest procedures. Numerous small businesses are therefore accepting access to farm machinery that would otherwise be incredibly expensive to buy through service fee arrangements, although there is still room for expansion. In order to facilitate the advancement and investment of such machinery more effectively, it is necessary to better understand the associated factors with the purchase of agricultural machinery and the provision of services. Firstly, current paper reviews country’s policy structure which enabled the existence of such machinery markets. It then uses stratified random sample of 305 wheat producing households for the survey from six districts, identifying variables associated with the adoption of the most common smallholder agricultural machinery e irrigation pumps, threshers, and power tillers. Results of multinomial probit model show that education of farmer, member of farmer’ organization, livestock ownership, farm size and being part of non-farm work activities all were significantly positive in the adoption of farm machinery. Findings also suggest that institutions and policy making authorities not only need to focus on short projects to encourage adoption of machinery, also there must be a continuous attention to improve physical and civilian infrastructure & services, and ensuring the availability of credit to create an favorable conditions where agricultural machinery is most likely to be used. Keywords: Agricultural machinery, Investment, Productivity, Efficiency. DOI: 10.7176/JESD/11-3-07 Publication date: February 29 th 2020
Highlights
The worldwide populace is predicted to the range of 9.6 billion in 2050 (Gerland et al, 2014)
About 2/3 population of Pakistan belongs to rural areas with more than 110 million, About 65% of it is employed for agriculture, which is equivalent to 45% of the total employed labor (Iqbal et al, 2015)
We have found that regional variable in all restricted and unrestricted model is significant at 5%, that means the infrastructure and information flow is very important for farm mechanization
Summary
The worldwide populace is predicted to the range of 9.6 billion in 2050 (Gerland et al, 2014). The current situation is complex by the predicted pressure on worldwide cultivated land accessibility; it is required to strengthen the production of available land to eliminate loss of soil fertility and biodiversity (Tilman et al, 2011). These issues are very critical in extremely populated South Asian region, with per capita income below $1.25 day_1 and the highest in extreme poverty around 399 million in 2011(World Bank, 2015b). About 2/3 population of Pakistan belongs to rural areas with more than 110 million, About 65% of it is employed for agriculture, which is equivalent to 45% of the total employed labor (Iqbal et al, 2015). In the meantime, increasing of rural-urban migration and development of offfarm work activities are reason of seasonal labor shortage (Zhang et al, 2014)
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