Agricultural mechanization in Ghana: Is specialization in agricultural mechanization a viable business model?

Agricultural mechanization in Ghana: Is specialization in agricultural mechanization a viable business model? PDF Author: Houssou, Nazaire
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages :

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Book Description
Since 2007, the government of Ghana has been providing subsidized agricultural machines to private enterprises established as Agricultural Mechanization Services Enterprise Centers (AMSEC) to scale up tractor-hire services to smallholder farmers. Although farmer’s demand for mechanization has increased in recent years, most of this demand concentrates on land preparation (plowing) service. Using the firm investment model and recent data, this paper quantitatively assesses whether AMSEC as a private enterprise is a viable business model attractive to private investors. Even though the intention of the government is to promote private sector-led mechanization, findings suggest that the AMSEC model is unlikely to be a profitable business model attractive to private investors even with the current level of subsidy. The low tractor utilization rate as a result of low operational scale is the most important constraint to the intertemporal profitability of tractor-hire services. Our findings further support the argument of Pingali, Bigot, and Binswanger (1987), who indicated that mechanization service centers supported through government’s heavy subsidy are not a policy option anywhere in the world, even in the current situation in Ghana. Although the tractor rental service market is a proper way of mechanizing agriculture in a smallholder-dominated agricultural economy such as Ghana, this paper concludes that the development of such a market depends crucially on a number of factors, including increased tractor use through migration across the two very different rainfall zones (north and south), increased tractor use through multiple tasks, and use of low-cost tractors. The government can play an important role in facilitating the development of a tractor service market; however, the successful development of such a market depends on the incentive and innovation of the private sector, including farmers who want to own tractors as part of their business portfolio, traders who know how to bring in affordable tractors and expand the market, and manufacturers in exporting countries who want to seek a long-term potential market opportunity in Ghana and in other west African countries.

Agricultural mechanization in Ghana: Is specialization in agricultural mechanization a viable business model?

Agricultural mechanization in Ghana: Is specialization in agricultural mechanization a viable business model? PDF Author: Houssou, Nazaire
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages :

Get Book

Book Description
Since 2007, the government of Ghana has been providing subsidized agricultural machines to private enterprises established as Agricultural Mechanization Services Enterprise Centers (AMSEC) to scale up tractor-hire services to smallholder farmers. Although farmer’s demand for mechanization has increased in recent years, most of this demand concentrates on land preparation (plowing) service. Using the firm investment model and recent data, this paper quantitatively assesses whether AMSEC as a private enterprise is a viable business model attractive to private investors. Even though the intention of the government is to promote private sector-led mechanization, findings suggest that the AMSEC model is unlikely to be a profitable business model attractive to private investors even with the current level of subsidy. The low tractor utilization rate as a result of low operational scale is the most important constraint to the intertemporal profitability of tractor-hire services. Our findings further support the argument of Pingali, Bigot, and Binswanger (1987), who indicated that mechanization service centers supported through government’s heavy subsidy are not a policy option anywhere in the world, even in the current situation in Ghana. Although the tractor rental service market is a proper way of mechanizing agriculture in a smallholder-dominated agricultural economy such as Ghana, this paper concludes that the development of such a market depends crucially on a number of factors, including increased tractor use through migration across the two very different rainfall zones (north and south), increased tractor use through multiple tasks, and use of low-cost tractors. The government can play an important role in facilitating the development of a tractor service market; however, the successful development of such a market depends on the incentive and innovation of the private sector, including farmers who want to own tractors as part of their business portfolio, traders who know how to bring in affordable tractors and expand the market, and manufacturers in exporting countries who want to seek a long-term potential market opportunity in Ghana and in other west African countries.

Agricultural Mechanization in Ghana

Agricultural Mechanization in Ghana PDF Author: Nazaire Houssou
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages : 24

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Book Description
Since 2007, the government of Ghana has been providing subsidized agricultural machines to private enterprises established as Agricultural Mechanization Services Enterprise Centers (AMSEC) to scale up tractor-hire services to smallholder farmers. Although farmer’s demand for mechanization has increased in recent years, most of this demand concentrates on land preparation (plowing) service. Using the firm investment model and recent data, this paper quantitatively assesses whether AMSEC as a private enterprise is a viable business model attractive to private investors. Even though the intention of the government is to promote private sector-led mechanization, findings suggest that the AMSEC model is unlikely to be a profitable business model attractive to private investors even with the current level of subsidy. The low tractor utilization rate as a result of low operational scale is the most important constraint to the intertemporal profitability of tractor-hire services. Our findings further support the argument of Pingali, Bigot, and Binswanger (1987), who indicated that mechanization service centers supported through government’s heavy subsidy are not a policy option anywhere in the world, even in the current situation in Ghana. Although the tractor rental service market is a proper way of mechanizing agriculture in a smallholder-dominated agricultural economy such as Ghana, this paper concludes that the development of such a market depends crucially on a number of factors, including increased tractor use through migration across the two very different rainfall zones (north and south), increased tractor use through multiple tasks, and use of low-cost tractors. The government can play an important role in facilitating the development of a tractor service market; however, the successful development of such a market depends on the incentive and innovation of the private sector, including farmers who want to own tractors as part of their business portfolio, traders who know how to bring in affordable tractors and expand the market, and manufacturers in exporting countries who want to seek a long-term potential market opportunity in Ghana and in other west African countries.

Can the private sector lead agricultural mechanization in Ghana?

Can the private sector lead agricultural mechanization in Ghana? PDF Author: Houssou, Nazaire
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages : 4

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Book Description
Increasing agricultural mechanization has long been of interest to many African countries. Constrained by the limited area that can be cultivated through the use of the hand hoe and its association with perceptions of primitiveness and drudgery, agricultural mechanization and large-scale farming have long been a part of the vision of modernizing agriculture in many African countries, including Ghana.

An evolving paradigm of agricultural mechanization development: How much can Africa learn from Asia?

An evolving paradigm of agricultural mechanization development: How much can Africa learn from Asia? PDF Author: Diao, Xinshen, ed.
Publisher: Intl Food Policy Res Inst
ISBN: 0896293807
Category : Political Science
Languages : en
Pages : 548

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Book Description
Agricultural mechanization in Africa south of the Sahara — especially for small farms and businesses — requires a new paradigm to meet the needs of the continent’s evolving farming systems. Can Asia, with its recent success in adopting mechanization, offer a model for Africa? An Evolving Paradigm of Agricultural Mechanization Development analyzes the experiences of eight Asian and five African countries. The authors explore crucial government roles in boosting and supporting mechanization, from import policies to promotion policies to public good policies. Potential approaches presented to facilitating mechanization in Africa include prioritizing market-led hiring services, eliminating distortions, and developing appropriate technologies for the African context. The role of agricultural mechanization within overall agricultural and rural transformation strategies in Africa is also discussed. The book’s recommendations and insights should be useful to national policymakers and the development community, who can adapt this knowledge to local contexts and use it as a foundation for further research.

Agricultural mechanization

Agricultural mechanization PDF Author: Food and Agriculture Organization of the United Nations
Publisher: Food & Agriculture Org.
ISBN: 9251093814
Category : Technology & Engineering
Languages : en
Pages : 55

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Book Description
This paper is specifically about agricultural mechanisation: the opportunities provided by mechanisation for intensifying production in a sustainable manner, in value addition and agri-food value chain development, as well as the inherent opportunities implied for improved local economies and livelihoods. The establishment of viable business enterprises agro-processors, transport services, and so forth as a result of increased agricultural mechanisation in rural areas, is crucial to creating employment and income opportunities and, thereby, enhancing the demand for farm produce. Mechanisation plays a key role in enabling the growth of commercial agri-food systems and the efficiency of post-harvest handling, processing and marketing operations, and as such can be a major determinant in the availability and accessibility of food, the food prices paid by urban and rural poor, as well as contributing to increased household food security.

Ghana's Economic and Agricultural Transformation

Ghana's Economic and Agricultural Transformation PDF Author: Xinshen Diao
Publisher: Oxford University Press
ISBN: 0198845340
Category : Business & Economics
Languages : en
Pages : 310

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Book Description
Using Ghana as a case study, this work integrates economic and political analysis to explore the challenges and opportunities of Africa's growth and transformation.

The State of Food and Agriculture 2022

The State of Food and Agriculture 2022 PDF Author: Food and Agriculture Organization of the United Nations
Publisher: Food & Agriculture Org.
ISBN: 925136043X
Category : Political Science
Languages : en
Pages : 182

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Book Description
Automation has been shaping world agriculture since the early twentieth century. Motorized mechanization has brought significant benefits in terms of improved productivity, reduced drudgery and more efficient allocation of labour, but also some negative environmental impacts. More recently, a new generation of digital agricultural automation technologies has appeared, with the potential to further enhance productivity, as well as resilience, while also addressing the environmental sustainability challenges driven by past mechanization. The State of Food and Agriculture 2022 looks into the drivers of agricultural automation, including the more recent digital technologies. Based on 27 case studies, the report analyses the business case for adoption of digital automation technologies in different agricultural production systems across the world. It identifies several barriers preventing inclusive adoption of these technologies, particularly by small-scale producers. Key barriers are low digital literacy and lack of an enabling infrastructure, such as connectivity and access to electricity, in addition to financial constraints. Based on the analysis, the publication suggests policies to ensure that disadvantaged groups in developing regions can benefit from agricultural automation and that automation contributes to sustainable and resilient agrifood systems.

Farm transition and indigenous growth

Farm transition and indigenous growth PDF Author: Houssou, Nazaire
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages : 48

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Book Description
This paper characterizes the transition from small-scale farming and the drivers of farm size growth among medium- and large-scale farmers in Ghana. The research was designed to better understand the dynamics of change in Ghana’s farm structure and contribute to the debate on whether Africa should pursue a smallholder-based or large-scale oriented agricultural development strategy. The results suggest a rising number of medium-scale farmers and a declining number of smallholder farmers in the country, a pattern that is consistent with a changing farm structure in the country’s agricultural sector. More important, findings show that the rise to medium- and large-scale farming is significantly associated with successful transition of small-scale farmers rather than entry of medium or large farms into agriculture, reflecting small-scale farmers successfully breaking through the barriers of subsistence agriculture into more commercialized production systems. The findings in this paper also suggest that some of the factors thought to be important for change in farm structure are no obstacle to farm size growth, even though they may foster transition. Notably, the results here diverge from the patterns observed in Zambia and Kenya, which indicate that the emergent farmers came mostly from the urban elite. Unfortunately, past and current policy discussions have not featured these emergent farmers sufficiently in the quest to transform agriculture in Ghana. Government should capitalize on these emergent farmers who have a demonstrated ability to graduate productively as it strives to address challenges in the smallholder sector.

The Impact of Oportunidades on Human Capital and Income Distribution

The Impact of Oportunidades on Human Capital and Income Distribution PDF Author: Dario Debowicz
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages : 44

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Book Description
In an effort to inform social policy in Mexico, this paper analyzes the effects of a major social program on school attendance and household income distribution, accounting for its partial and general equilibrium effects. Linking a microeconometric simulation model and a general equilibrium model in a bidirectional way, the paper explicitly takes spillover effects of the Oportunidades conditional cash transfer program into account. Our results suggest that partial equilibrium analysis alone may underestimate the distributional effects of the program. Extending the coverage of the program leads to a significant increase in school attendance, which reduces labor supply and increases the equilibrium wages of the children who remain at work. This general equilibrium effect indirectly reduces income inequality and poverty at the national level.

Filling the learning gap in program implementation using participatory monitoring and evaluation

Filling the learning gap in program implementation using participatory monitoring and evaluation PDF Author: Elias Zerfu
Publisher: Intl Food Policy Res Inst
ISBN:
Category : Social Science
Languages : en
Pages : 44

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Book Description
This study is motivated by the idea that even though participatory monitoring and evaluation (PM&E) is widely accepted as a tool to manage development programs to be effective, its application is widely constrained by its high start-up resource requirements in terms of both finance and time. However, this paper argues that after the initial investment is made, the payback from using PM&E is much higher both in terms of grassroots-level learning, empowerment, and capacity building and in terms of higher-level strategic decision making which enhances impact. This is demonstrated using field-level experience of implementing PM&E in farmer field schools (FFSs) under the Agricultural Services Support Program and Agricultural Sector Development Program–Livestock (ASSP/ASDP-L) program in Zanzibar, Tanzania. After describing the major steps followed in designing and implementing a PM&E for FFSs, the major lessons learned and challenges faced in the process are discussed. The study found out that PM&E has enabled the tracking of technology uptake and reasons behind adoption and nonadoption of technologies through detailed data collection. This informed and improved decision making at a higher level to design feasible methods to scale up adoption at other FFSs and to devise solutions for nonadoption. The need for incentives to undertake PM&E was found to be one of the major challenges of implementation, among others.