Citation Matrix

Original Citation Rephrased Citation Source

In the beginning, all crops Many decades passed before Smith, H. P. (2020). Farm
for the sustenance of animal muscles were machinery and its relation to
mankind were produced employed to ease human agriculture. In Farm Machinery
and prepared by the power suffering. All crops for and Equipment (pp. 1–528).
of human muscles. Many humanity's sustenance were essay, Read Books Ltd.
centuries passed before the grown and prepared by the Retrieved November 19, 2021
power of animal muscles strength of human muscles. from https://bit.ly/30F7iSI
was used to relieve that of The discovery of iron resulted
the human being. With the in creating tools that reduced
discovery of iron, tools were the amount of work that
fashioned that further human muscles had to do.
relieved the labor of human The shift from manual
muscles. The transition farming to modern power
from hand farming to this farming was slow at first.
modern power-farming age However, with the creation of
was at first slow, but with steel plow, internal-
the development of the combustion engines, farm
steel plow, the internal- tractors, and other modern
combustion engine, the farm machines, the
farm tractor, and other movement has accelerated
modern farm machines, the beyond our forefathers'
movement has accelerated wildest ambitions. The
beyond the wildest dreams changes over the last decade
of our forefathers. The have had such a profound
changes which occurred impact on human values that
during the past decade one could ask what impact
have so tremendously future agricultural machines
affected human values that will have on our well-being. It
one wonders what effect is also said that the last
farm machines of the future hundred years have seen
will have on our welfare. In more agricultural
fact, there has been more advancement than the entire
farming progress in the last history of the world.
hundred years than in all
the previous history of the
world.
Agriculture is an art of Agriculture is defined as Singh, T. P. (2017). In Farm
cultivating the soil for cultivating soil to produce Machinery. preface, PHI
producing crops to provide crops that supply food, Learning Private Limited.
food, fodder and fuel for fodder, and fuel for humans Retrieved November 19, 2021
human beings and animals. and animals. Agriculture was from https://bit.ly/3CBQucC
In earlier days, agriculture once performed with primitive
was being practiced by equipment and human and
using primitive tools with animal power as a source of
human and animal as energy. However, the
power source. However, situation has altered
the scenario has been dramatically, and more
changed a lot and now advanced agricultural
there is more advanced methods are now available.
technologies available for Next, agriculture engineering
practicing agriculture. is a discipline of engineering
Agriculture engineering is that teaches how to use
the branch of engineering engineering ideas and
that provides knowledge of methods to produce and
applying engineering process food, fiber, and fuels
principles and practices for more efficiently. Farm
efficient crop production machinery also plays an
and processing of food, essential role in crop
fibre as well as fuels. production, starting with
Farm Machinery plays an seedbed preparation and
important role in crop harvesting and grain
production starting from the recovery.
seedbed preparation to
harvesting and the recovery
of the grain.
The Government of India is
emphasizing the use of
farm implements and
machineries to reduce
human drudgery, minimize
input cost and boost the
crop production in order to
maximize the farmer’s
profit.
Agricultural field machines Agricultural field machines Thomasson, J. A., Baillie, C. P.,
have already undergone have already undergone Antille, D. L., Lobsey, C. R., &
significant automation and significant automation and McCarthy, C. L. (2019).
are progressing from the are on their way to becoming Autonomous Technologies in
common completely autonomous field agricultural equipment: A review
automatic guidance of robots. Multiple technologies of the state of the art. American
today to the fully linked with equipment Society of Agricultural and
autonomous field automation have advanced Biological Engineers. Retrieved
robots of tomorrow. Major significantly in the previous November 20, 2021, from
areas of advancement two decades, and major https://bit.ly/3x6p4ue
include the manufacturers and certain
following: (1) automatic specialized companies are
vehicle guidance and combining these technologies
steering control, (2) in ways that improve
automatic implement agricultural operations
guidance, (3) automatic significantly. They provided
headland sequence and the following significant areas
turn management, (4) of progress or advancement
sensing for perception, (5) as follows: Automatic vehicle
sensing for variable-rate assistance and steering
technologies, (6) control; Automatic
optimization of machine implementation assistance;
operation, (7) machinery Automatic headland
coordination, and sequence and turn
(8) machinery management; Perception
communication. sensing; Variable-rate
The last two decades have sensing; Machine operation
seen great progress in optimization; Machinery
multiple coordination; and Machinery
technologies associated communication.
with equipment automation,
and the
major manufacturers and
some specialized
companies are
bringing these technologies
together in ways that
provide
major improvements to
farm operations. This article
is a
brief snapshot of the
current status of some
major technologies, and it is
clear that the future is very
bright for autonomous
vehicles in agriculture.
In a society where there are Mechanization in specific Diao, X., Silver, J. & Takeshima,
both large and small operations is efficient in H. (2016). Agricultural
farmers, tractors can be terms of labor savings. mechanization and agricultural
essential for expanding the Mechanization has become a transformation (Vol. 1527). Intl
aggregate area cultivated more enticing option for such Food Policy Res Inst. Retrieved
by large firms, for which farms due to the economies November 21, 2021 from
hired labor represents a of scale involved with a large https://bit.ly/3kX8XdF
high proportion of machine. In terms of
production cost. The improving farm productivity
economics of scale and sustaining income status
associated with a large and welfare of small-scale
machine such as a tractor farmers, the role of
have made mechanization mechanization in agriculture
a more attractive was extensively observed.
technology to such farms. Large machine-like tractors
Labor-saving effects of the can be vital for growing the
mechanization of certain aggregate area cultivated by
operations. Mechanized major enterprises when hired
plowing significantly labor represents a high
reduces the amount of proportion of production cost
labor required for land in a society with large and
preparation and typically small farmers. In addition,
results in small decreases mechanized plowing
in the labor required for minimizes the labor required
weeding and harvesting. for land preparation and often
Where hired labor results in slight reductions in
represents a relatively large the amount of labor needed
share of production costs, for weeding and harvesting.
even smaller farmers begin Even small farmers seek
to demand mechanization mechanized technology as
technology when labor labor expenses begin to grow
costs start to rise, to reduce to lower their labor and total
their labor and total output costs.
production costs.
Mechanization in In terms of increasing Goyal, E. R., & Singh, S. (2020).
agriculture holds the key for production through timely Farm Power and Machinery
sustainable development in farm operations, reducing Management. Retrieved
the terms of increasing the losses, lowering operating November 21, 2021 from
production by timely farm costs by ensuring better https://bit.ly/3cOLDKZ
operations, reducing management of costly inputs,
losses, reducing the cost of and increasing the
operations by ensuring productivity of natural
better management of resources, mechanization in
costly inputs and enhancing agriculture holds the key to
the productivity of natural sustainable development. It
resources besides it helps also helps to reduce drudgery
in reducing drudgery in in farm operations. They also
farm operations. elaborated on some issues
Farm Power is an essential with machinery management
input in agriculture for that may arise, such as: (a)
timely field operations for How many pieces of
operating different types of equipment should be owned?
farm equipment and for (b) What equipment size is
stationary jobs like required? (c) How frequently
operating irrigation should the equipment be
equipment, threshers/ traded? (d) Is it better to hire
shellers/ cleaners/ graders a specialized operator or
and other post harvest lease a machine? and (e)
equipment. The source of What can be done to keep
farm power includes the rapidly rising fuel
human, animal, tractors, expenses to a minimum? It is
power tillers, diesel engine also mentioned that farm
and electric motor. power is a critical input in
The key factor in farm agriculture for timely field
mechanization is the operations and stationary
introduction of mobile jobs like operating irrigation
mechanical power, i.e., equipment, threshers,
tractor, power tiller and spellers, cleaners, graders,
associated machinery and other post-harvest
Many problems of equipment. However,
machinery management portable mechanical power,
are encountered such as: such as a tractor, power tiller,
a) How many equipment and accompanying
should be owned? b) What machinery, is crucial in farm
size of equipment is mechanization.
required? c) How often
should the machinery be
traded? d) Should a custom
operator be hired or a
machine be leased? e) How
can the rapidly increasing
fuel costs be kept to the
minimum?
Here's some helpful Gaebler Ventures (2021) Gaebler Ventures (2021).
information that is ideal for suggested helpful information Opening a farm equipment rental
entrepreneurial folks who for those considering and Leasing Business. Retrieved
are thinking about starting a beginning a farm equipment November 24, 2021, from
farm equipment rental and rental and leasing business. https://bit.ly/3FRpBDs
leasing business. Prior to It is a best to look into the
launching a farm equipment competition before starting a
rental and leasing business farm equipment rental and
in your town, it's a smart leasing business in the
move to find out what the community. Make sure you
competition looks like. Be understand the competitive
sure you fully understand landscape thoroughly and
the competitive landscape how your local venture will fit
and where your new into it. You should learn from
business will fit in. If you others who have gone before
want to open a farm you if you want to start a farm
equipment rental and equipment rental and leasing
leasing business you really business. It would be better
ought to learn from folks to investigate if there are any
who are already in viable franchise options
business. As part of your available as part of your
process in starting a farm process of beginning a farm
equipment rental and equipment rental and leasing
leasing business, you business.
should check out whether
there are good franchise
opportunities available that
might help you on your
entrepreneurial journey.
Launching a startup in any Starting a business in any Crader M. (2019). August 20). 5
location is challenging, but place is difficult. However, things you need to know before
there are many reasons there are several reasons starting a rural small business.
choosing a rural community why choosing a rural BOSS Magazine. Retrieved
can be a boon for your neighborhood might be November 23, 2021, from
business. While growth beneficial to your company. https://bit.ly/3DMTrse
may be slower and staffing While growth will be slower
can be challenging, you’ll and hiring will be more
enjoy lower overhead, less difficult, you'll benefit from
competition, and better lesser overhead, less
odds at securing the competition, and a higher
financing you need. As long chance of obtaining the
as your strategy takes into funding you require. Your firm
account some of the should be well-positioned to
specific difficulties you may use a rural location and make
face in a smaller economic it work for your bottom line as
ecosystem, your business long as your plan considers
should be well positioned to some of the unique
leverage a rural locale and challenges that come with
make it work for your operating in a smaller
bottom line. economic ecosystem.
The Philippines agriculture In 2023, the Philippines Ken Research. (2019,
equipment industry is agriculture equipment September 26). Market Research
anticipated to grow in the industry is likely to develop in Report. Retrieved November 23,
future due to the expected the future, reaching roughly 2021, from
increase in the agriculture 86.3 million metric tons https://prn.to/3r5HMS6
crop production, reaching because of the expected
up to around 86.3 million growth in agriculture crop
metric tons in 2023. production.
As an agricultural country, Because it is an agricultural PearlPay. (2020). The role of
the Philippines is in the best country, the Philippines is agriculture: Rebooting the
position to have an ideal for developing an Philippine Economy. Retrieved
agriculture-driven economy. agriculture-based economy. December 14, 2021, from
The COVID-19 pandemic Moreover, the epidemic of https://bit.ly/3213b42
emphasized the role of COVID-19 highlighted the
agriculture in Philippine importance of agriculture in
economy. When import and the Philippine economy. The
export grounded to a halt need for the country to be
due to strict social self-sustaining was
distancing measures, it demonstrated when import
showed the need for the and export came to a halt
country to be self- owing to strong social
sustainable. With this in separation measures. With
mind, the government this in mind, the government
aimed to strengthen the has a significant role in the
agricultural sector. The agriculture sector's
vision now is to be a food- strengthening. Better support
secure and resilient country will increase the country's
that aims to help farmers food production and supply,
and fisherfolk prosper. even during times of crisis, to
Providing better support will be a food-secure and resilient
improve the country’s food country that strives to help
production and supply even farmers succeed. The
during times of crisis. It can government might maximize
help modernize rice farming their support by providing all
and farm mechanization, farmers, especially small-
reducing high production scale farmers, with
costs that rely on manual machinery and equipment to
operations from land help modernize rice growing
preparation to harvesting. and agricultural
With this, rice farmers can mechanization, lowering high
be more productive and production costs that rely on
earn more income. human processes from land
preparation to harvesting. As
a result, farmers can be more
productive and make more
money.
Agricultural equipment and Agricultural machinery and Ekawati, Ellyta, & Sugiardi, S.
machinery have become equipment have become the (2021). Economic feasibility
the main farmer's need as primary necessity of farmers analysis of service business of
technically it can accelerate since they can ensure agricultural equipment and
and improve the quality of efficiency and improve the machinery in Kubu Raya
soil cultivation, water quality of soil cultivation, Regency, Indonesia. IOP
supply, increase the water supply, cropping index, Conference Series: Earth and
cropping index, reduce lost reduce lost yields, and Environmental Science, 637,
yields and preserve the safeguard environmental 012059. Retrieved November
environmental functions. functions. Through product 20, 2021, from
Economically, it can processing, productivity, and https://bit.ly/3ctTvRV
increase the added values resource efficiency, it can
through product processing, improve added values
productivity, and resource economically.
efficiency.
Investment in advanced Annual investment in Walker, D., Kurth, T., Wyck, J.
agricultural technologies sophisticated agriculture V., & Tilney, M. (2021, January
has increased by 80% technologies has surged by 8). Lessons from the frontlines of
annually since 2012. 80% since 2012. According the Agtech Revolution. BCG
We asked respondents to to their survey, the majority of Global. Retrieved November 20,
tell us their top priorities for the respondents mentioned 2021, from
investment among 27 bioscience technologies, https://on.bcg.com/3kVg5r4
technologies that fall within autonomous equipment, and
six agtech clusters: agricultural processing
agricultural bioscience, technology as their top
data-enabled agriculture, investment priorities out of 27
automation and robotics, technologies given. Their
supply chain and logistics, findings suggest that
agricultural processing, and agricultural firms should
alternative business invest in agricultural
models. technology in a customer-
To increase yields or centric and methodical
reduce costs, farmers are manner. It is also stated that
using a wide variety of new these technologies help
bioscience technologies optimize agricultural inputs to
that optimize inputs to increase yields or lower
agricultural production. Of costs, and traditional farming
our respondents, 60% cited methods are being phased
a technology in this cluster out in favor of automated or
as one of their top five robotic systems that eliminate
priorities, with biologics manual labor and improve
cited most often. speed, consistency, and
Traditional approaches to capacity.
farming are being replaced
by automated or robotic
systems that eliminate
manual work or enhance
speed, consistency, and
capacity. Examples include
the use of electrified
systems, autonomous
equipment, drones, and
robots. These technologies
were cited as a top-five
priority by 45% of
respondents, with
autonomous equipment
cited most often.
New technologies for
processing agricultural
output (crops or livestock)
are enabling enhanced or
entirely new applications or
allowing companies to
optimize processing steps.
Agricultural processing
technologies, led by
biofuels, were cited as a
top-five priority by 35% of
respondents.
Our findings point to the
need for agribusiness
companies to take a
customer-focused,
systematic approach to
investing in agtech.
In the process of economic In most Asian countries, the Otsuka, K., Liu, Y., & Yamauchi,
development in Asia which economy's comparative F. (2016). The future of small
accompanied the advantage has shifted from farms in Asia. Development
continuous increases in agriculture to non-agricultural Policy Review, 34(3), 441–461.
the real wage rate, the sectors during the period of Retrieved November 24, 2021
comparative advantage of economic development in from https://bit.ly/2Zfn1aO
the economy in most Asian Asia, which has been
countries has been shifting accompanied by steady
from agriculture to increases in the real wage
nonagricultural sectors. rate. One cause is Asia's tiny
One reason is the small farm size, which necessitates
farm size in Asia, which labor-intensive farming.
requires labour-intensive Hence, farm size expansion
cultivation. In order to and mechanization are
reduce labour cost, farm required to lower labor costs,
size expansion and as land and machinery are
mechanization must take complementary.
place, as land and
machinery are
complements.
The role of mechanization Labor-intensive production Mujawamariya, G., & Kalema, E.
in agriculture is well processes are expensive in P. (2017). Limited usage of
documented in terms of rice cultivation, and proper mechanical equipment in small-
improving productivity of usage of mechanical scale rice farming: a cause of
farm labour and land, and equipment, particularly in land concern. Journal of Agriculture
sustaining income status preparation and harvesting, and Environment for International
and welfare of small-scale yields evident benefits. Development, 5–21. Retrieved
farmers. In rice production, However, the limited use or November 24, 2021 from
there is a high cost adoption of advanced https://bit.ly/3FCmFuk
associated with labour equipment in these operations
intensive production continues to be a source of
practices especially in land concern. Mechanization has a
preparation, weeding and good influence on productivity
harvesting, thus proper in general. However, there is
usage of mechanical a significant cost involved with
equipment especially in its use. Thus, users must be
land preparation and informed of the benefits,
harvesting leads to clear prices, technical
advantages. However, the requirements, and how to
limited usage/adoption of utilize modern/mechanical
modern equipment in technology before adopting
these operations remains and using it.
an issue of concern.
Mechanization generally
has a positive effect on
production. However, the
cost associated with its
usage is high. Adoption
and usage of
modern/mechanical
equipment requires that
users are aware of the
benefits, costs, technical
requirements and how to
handle the equipment. The
equipment should be made
available and affordable to
farmers.
The Philippines has been Because of its geographic Tindowen, D. J. (2016, January).
one of the countries location, the Philippines Rice farming methods, tools, and
distributing rice in other contributed to the distribution indigenous practices and beliefs
countries. Dawe (2006) of rice to other countries in of Itawes farmers of Tuguegarao
stressed that the 2016 and became a major City. ResearchGate. Retrieved
geography of the importer of rice. However, the November 24, 2021, from
Philippines is the reason government prioritizes https://bit.ly/3r4tSiR
why it became a net infrastructure and technology
importer of rice. over agricultural growth.
In this modern world, the Although the government
government focuses more continues to propose new
on infrastructures and farming technology, due to a
technologies instead of shortage of money and
developing agriculture. The financial skills, not all farmers,
Government keeps on particularly those in rural
proposing new areas, can afford to buy or
technologies to use in develop new farming
farming but still not all technologies. As a result, they
farmers can afford to buy rely on traditional farming
or generate new methods.
technologies for faming
especially farmers from the
rural area due to lack of
capital and financial
capabilities. As a result,
they rely on traditional
ways of farming.
Also, inflation in farm Today's farm equipment rental Wood, L. (2021, November 17).
equipment prices has sector represents a significant Global Farm Equipment Rental
made it difficult for small- opportunity. In addition, farm Market Report 2021: High rental
and medium-scale farmers equipment prices have risen, costs and interest rates, a market
to afford the equipment. making it harder for small and challenge - forecast to 2026.
This has led to an increase medium-scale farmers to Retrieved November 24, 2021,
in the growth of the global afford it. As a result, the from https://prn.to/3nNAUGY
farm equipment rental worldwide agricultural
market. equipment rental market has
The growth rate in the seen an increase in growth.
market is because of the The market's growth rate is
increased government due to rising government
initiatives around the world initiatives for rental farm
for rental farm equipment, equipment worldwide, which
as this leads to an increases agricultural
increase in agricultural production to meet the
production to cater to the growing global food demand.
growing global food During the projected 2021-
demand. The global farm 2026, the global agricultural
equipment rental market is equipment rental market is
expected to reach $46.28 expected to reach $46.28
billion by 2026, with a billion, with a CAGR of 6.63
CAGR of 6.63% during the percent.
forecast period 2021-2026.
The following suggestions This suggested Diao, X., Agandin, J., Fang, P.,
are proposed to help recommendation to assist the Justice, S. E., Kufoalor, D. S., &
refocus Ghana government is refocusing its Takeshima, H. (2018).
government efforts on how efforts on how to improve the Agricultural mechanization in
to improve the fairness and fairness and efficiency of its Ghana: Insights from a recent
efficiency of mechanization mechanization policy. First, it field study (Vol. 1729). Intl Food
policy. is important to recognize that Policy Res Inst. Retrieved
1. Recognizing the medium and large-scale November 26, 2021, from
fundamental fact that farmers are the leading https://bit.ly/3cMS7tJ.
medium and large scale participants in mechanized
farmers are the dominant services as a critical first step
players in mechanization in the government's support
service provision is the for mechanization in general.
important first step in order As a result of this fundamental
for the government to fact, an effective
support to mechanization mechanization strategy should
in general. Because of this prioritize the entire service
fundamental fact, an market rather than a specific
effective mechanization group of service providers as
policy should aim at whole policy beneficiaries. Removing
service market as a taxes and levies on spare part
primary principle instead of imports and non-
targeting a selected group discriminatory subsidized
of service providers as financing to farmers and
policy beneficiaries. machinery and spare part
Example of such policies importers are examples of
include removing taxes such programs. Rather than
and duties on the imports benefiting arbitrarily selected
of spare parts and non- beneficiaries, these rules can
discriminatory subsidized benefit the entire storage of
lending to farmers and tractor owners and machinery
machinery and spare part service providers. Second, the
importers. These policies government could do more to
can benefit the full storage make it easier for small
of tractor owners and farmers to get prompt
machinery service mechanized services. Small
providers rather than farmers' inability to coordinate
arbitrarily selected groups their farming methods is a
of beneficiaries. significant impediment to them
2. The government can do receiving timely assistance.
more to help small farmers Third, the government should
easily access timely also do more to promote
mechanization services. harrowing or second plowing
Lack of coordination so that mechanization can be
among small farmers in more beneficial to increasing
farming practices is a land production. Even non-
considerable barrier for adopters are aware of the
them to access services on benefits of harrowing and
time. second-plowing in terms of
3. Government can also do yield improvement. Fourth, the
more in promoting the use demonstration of various
of harrowing or second smaller tractors, including
plowing such that power tillers, is vital for filling
mechanization can be the knowledge gap about
more helpful for land smaller tractors in the country
productivity improvement. as well as understanding what
While even non-adopters types of smaller tractors are
are aware of the benefits in suitable for which locations.
yield improvement from Experience from some local
harrowing and second- tractor owners who have
plowing. successfully managed smaller
4. The demonstration of horsepower Indian tractors
various smaller tractors provides valuable lessons
including power tillers is learned. Lastly, new
important for filling the implements, such as the
knowledge gap about recently introduced planters
smaller tractors in the and harvesters, should be
country as well as for researched further. It is critical
understanding what typed to introduce planters and
of smaller tractors are harvesters to the country so
suitable for which location that mechanization does not
Experience of some local stop at field preparation and
tractor owners who have can motivate farmers to adopt
successfully managed better land preparation
smaller horsepower of practices.
Indian tractors provide
helpful lesson learned.
5. Experience with the new
implements such as the
recently imported planters
and harvesters should be
further studied. It is
important to introduce
planters and harvesters to
the country, such that
mechanization will not
simply stay at the land
preparation stage and
could lead farmers to
adopt better practices in
land preparation.
There were tremendous Starting a business comes Colwell, K. (2019). Starting a
fixed costs in starting a with many fixed costs, such as business quickstart guide: The
business, such as leasing renting and equipping office simplified beginner's guide to
and equipping office space, purchasing plant and launching a successful small
space, purchasing plant equipment assets, covering business, turning your vision into
and equipment assets, material and inventory prices, reality and achieving your
covering material and and recruiting personnel, not entrepreneurial dream.
inventory costs, and hiring to mention overcoming ClydeBank Media LLC. Retrieved
employees, not to mention countless legal and regulatory November 26, 2021, from
numerous legal and difficulties. These costs have https://bit.ly/3cL9HhI
regulatory hurdles. In the either been eliminated or
last two decades or so, much reduced in the previous
these costs have been two decades or so. The
either eliminated or largely expense of starting a business
mitigated. There are is unquestionably high.
certainly costs associated Startup costs might range
with the startup process. from a few thousand dollars to
Depending on the type of several thousand dollars,
business you want to depending on the type of
operate, your startup costs business you want to
can run into s few establish. He provided some
thousand dollars , spread quick start guide or basic
over time. Your baseline requirements in starting a
needs will include the business. First, having
following: connectivity. You will need a
1. Connectivity. A laptop, laptop, a cell phone, and a
cell phone, and good reliable internet connection.
internet connection are a Second, registration. There
must. are specific fundamental legal
2. Registration. fees associated with
Incorporation, along with incorporation and state
state registration, incurs registration. A lawyer is
some basic legal fees. A usually not required for a
lawyer is usually not company in its early phases,
necessary for a startup in but if you are unsure about
the earliest stages, but if your needs or the intricacies
you are unsure about your of your industry, consults an
needs or the specifics of incorporation and business
your industry, contact a law attorney. Third, an online
lawyer who specializes in presence. For modern
incorporation and business organizations, having an
law. online presence has never
3. A web presence. A web been more accessible or more
presence has never been critical. Your domain name,
easier to establish or more web hosting, and website are
necessary for modern all part of your web presence.
businesses. Collectively, Even if you have no technical
your web presence refers skills, vendors who provide
to your domain name, web these services make it simple
hosting, and website. to develop an online presence
Vendors who offer these for your organization. Fourth,
services make it easy to a graphic identity. The total of
establish a web presence a company's visual design
from your business even if features, such as logos,
you have no technical business cards, visual
experience. messaging, color palette, and
4. A graphic identity. The visual themes, is its graphic
graphic identity of a identity. Lastly, a social
business is the sum of that presence. Nothing compares
business’s visual design to social media for engaging
elements such as logos, with your customers.
business cards, visual Consumers expect firms they
messaging, color palette, do business with to be active
and visual themes. on social media. Business
5. A social Presence. Your social media accounts are
web presence can be a generally free, but they might
two -way communication cost money in the form of
tool, but nothing beats content creation,
social media for creating a management, and
dialogue with your management software that
customers Now more than decreases the amount of
ever, consumers expect effort required to maintain an
that the brands they do active social media presence.
business with will have a
social presence. Social
media accounts for
businesses are usually
free, but they can incur
cost in the form of content
production, management,
and management software
that reduces the time
requirements than an
active social media
presence can produce.
One of the relationships The interaction between Glover, D., & Kusterer, K. C.
which has been least agribusiness and small (2016). Small farmers, big
explored is that between farmers is least studied. The business: Contract farming and
agribusiness and small term "agribusiness" has been rural development. Springer.
farmers. The tern used to cover such a wide Retrieved November 26, 2021,
“agribusiness” has been range of phenomena that from https://bit.ly/3cR2o81
used to cover such a defining it is difficult. However,
variety of phenomena that it usually refers to the
definition is difficult, but it activities of a private company
generally refers to the that produces, processes, or
activities of a private firm, markets agricultural or
alone or joint ventures with agricultural-related goods and
public agencies, in the services, whether alone or in
production, processing or joint ventures with public
marketing of agricultural or agencies. International
agriculture-related goods commodity trading, farm
and services. This is very machinery manufacturers,
broad definition includes agrochemical suppliers,
international commodity produce canners and packers,
trade, farm machinery and plantation owners are all
manufacturers, agro- included in this broad term.
chemical suppliers, Many businesses, including
produce canners and those described above, are
packers and plantation highly diversified and operate
owners. Many firms, in multiple industries.
including some mentioned
above, are highly
diversified and operate in
several of these fields.
The Institution for Rental In the study of Winarno Winarno, K. (2017). Factors
Service of Agricultural Shaping the Operation of
(2017), about the
Machinery (IRSAM) Machinery Hire Services: Case
implementation of the
programme in the special Studies on the Implementation of
region of Yogyakarta, the Institution for Rental Service the Institution for Rental Services
Republic of Indonesia, the of Agricultural Machinery (Irsam)
of Agricultural Machinery
study provided some Programme in the Special Region
(IRSAM), program was
factors shaping the of Yogyakarta, the Republic of
operation of machinery implemented in the Indonesia. (Thesis). Massey
hire services. As part of University, Palmerston North,
Yogyakarta Special Region of
the government initiative to New Zealand. Retrieved
the Republic of Indonesia as
improve the production of November 20, 2021, from
agricultural commodities, part of a political effort to https://bit.ly/3czTKe8
particularly the five major
enhance agricultural
staples – rice, maize,
commodity production,
soybeans, sugar, and beef,
the Ministry of agriculture particularly the five major
(MoA) of the Republic of
staples – rice, maize,
Indonesia launched the
soybeans, sugar, and beef.
implementation of the
Institution for Rental The program aims to help
Service of Agricultural
farmers establish a rural
Machinery (IRSAM)
business unit by providing
programme in 1998. The
programme aims to agricultural equipment
encourage the use of farm
services to other farmers and
machinery at the farm level
to improve agricultural encouraging farmers to use
production, and to promote
farm machinery on their farms
farmers to develop a rural
to increase agricultural
business unit by providing
agricultural machinery production. For approximately
services to other farmers.
18 years, the IRSAM program
The IRSAM programme
has been in effect. As a
has been rolled out for
more than 18 years. From consequence of this initiative,
this programme, many
several farmers have acquired
farmers have received
machinery and have begun to
machinery and started to
provide services to other provide other farms. Despite
farmers. Nevertheless, the
this, the IRSAM program was
implementation of the
launched in several locations
IRSAM programme has
been applied to different around Indonesia, with
areas of the Republic of
different degrees of success.
Indonesia, and showed
Some IRSAMs have had
various levels of success.
Some IRSAMs have considerable success turning
successfully developed the
their units into profitable
units into profitable
businesses. This study seeks
businesses. However, the
majority of the IRSAMs are to understand more about
still underdeveloped.
elements that impact IRSAM
This research is interested
functioning, notably in
in gaining a deeper
understanding of the Yogyakarta's Special Region,
factors that are shaping
and how IRSAMs respond to
the operation of IRSAMs
especially in the Special those situations. Several case
Region of Yogyakarta and
study approaches were used
how they are working on
to evaluate the qualities and
those factors. By
understanding the various conditions that influence the
factors, there would be a
IRSAM's operation. The
possibility for this research
participants in this study were
to provide
recommendations on how chosen using a combination of
the MoA will be able to
purposeful and snowballed
improve the
sampling techniques. A total
implementation of the
IRSAM programme. A of sixteen separate groups of
multiple case studies
persons were questioned. The
approach was used to
four key parameters impacted
explore factors and
circumstances, which the operation of both IRSAMs,
influence the operation of
according to the findings.
the IRSAM. This research
These were the machines with
applied purposive and
snowballed sampling to strong administrative and
select participants. Sixteen
financial capabilities,
groups of participants were
availability of qualified
interviewed. This research
analysed the data using machine operators, farmers'
qualitative data analysis
desire for equipment services
method. The results
(members of the framer
revealed four significant
factors influenced the group); and the availability of
operation of both IRSAMs.
governmental and private
These were: 1. Machinery
with good administrative sector institutional assistance.
and finance skills, 2.The
Although most of these
availability of capable
characteristics have been
machinery operators,
3.The demand for established in prior studies,
machinery services from
this study revealed one that
farmers (framer group
had not been previously
members), and 4. The
availability of institutional recognized. This element was
support from the public
the existence of alternative
and private sectors that
private providers indicated by
enable the IRSAM to
flourish, such as access to other IRSAMs. Furthermore, it
financial aid, the
was discovered that the
availability of spare parts,
IRSAM's official organizational
access to agricultural
extension services, training structure appeared to exist
for IRSAM employees, and
solely in the Republic of
rural infrastructure (rural
Indonesia. The particular
road networks and
irrigation networks). elements and settings that
Although most of these
shape the performance of the
factors have been
machinery recruiting group will
identified in other literature,
significantly, this research vary depending on the local
highlighted one factor that
conditions and distinct
has previously not been
features of situations. This
identified. This factor was
the availability of study demonstrates how the
alternative private
IRSAM program's delivery
provider/s other IRSAMs
identified. Additionally, it approach, which uses a
was revealed that the
blanket policy, allows the
formal organisation
IRSAM to work successfully in
structure of the IRSAM
seemed only to exist in the various settings. According to
Republic of Indonesia. The
this study, the IRSAMs could
formal structure has made
perform better if the
the roles of manager and
operators a significantly government will probably
important factor in affecting
target types of machinery to
the operation and manager
specific relevance needs of
and operators a
significantly important farmers in different areas.
factor in affecting the
Furthermore, the study
operation and success of
indicates that the government
the IRSAM. This research
illustrates the complexity of may create a database
the dynamic factors that
management system for
affect the operation of
public and private machinery
small-scale machinery
service providers. hire services to acquire
The local circumstances
accurate supply and demand
and different
data (Winarno, 2017).
characteristics of situations
are going to mean that the
specific factors and
settings that are shaping
the performance of the
machinery hiring group will
vary. This research shows
how the delivery process
of the IRSAM programme
using a blanket policy does
allow the IRSAM to
perform well across the
different situations. This
study highlights the value
that could be had for the
IRSAMs to perform better
if the government better
targets types of machinery
to match specific needs of
farmers in different areas.
Besides, the research
suggests that the
government could develop
a database management
system of public and
private machinery hire
services to obtain
information on the actual
supply and demand of
machinery services.
There is a need to In the study of Singh (2017), Singh, S. (2017). How Inclusive
encourage the custom and Effective are Farm Machinery
about “How Inclusive and
rentals services practice Rental Services in India? Case
Exclusive are Farm Machinery
across all states and Studies from Punjab. Retrieved
regions with proper Rental Services” in India, November 21, 2021, from
incentivisation of service https://bit.ly/3nAoLVs
custom rentals services
providers as it is the most
should be encouraged
effective way of cutting
down cost of farm
production and making throughout all states and
operations more efficient
regions, with adequate
and, therefore, increase
incentivizing of service
yields as well. The major
benefits of custom rentals providers. It is the most
were viable operations,
effective strategy of lowering
lower cost and benefit of
agricultural production costs,
large tractor and machine
availability due to their increasing operational
infrequent use as owning
efficiency, and increasing
them was costly and
yields. The main advantages
unaffordable. The
membership of PACS of custom rentals were
ranged from 477 to 1146
profitable businesses,
with average of 750 farmer
cheaper costs, and the
members with only one
having less than 400 accessibility of huge tractors
members. But, only 68 per
and machines. Their
cent members were active
occasional usage while
on an average. Of all
members, only 10 per cent owning them was expensive
were making use of rental
and unattainable. Based on
services ranging from 45-
the research finding, Primary
150 members across
PACS. Rotavator, laser Agricultural Co-operative
land leveler and disc
Societies (PACS) have
harrow emerged as the
members who use the rental
most hired equipment
across all the PACS. services in which it is ranging
Ninety six per cent of the
from 45 to 150 members, and
PACS served farmers
were satisfied with the it was found out that the most
service with 11 per cent
hired equipment are the
rating it very good and
rotavator, laser land leveler,
other as good and only
one farmer rating it as and disc harrow. Among the
poor. The reason for
partner who was using rental
satisfaction was good
services, 96% of PACS
availability of service in 93
percent cases. served farmers were satisfied
The other reasons for their
with the service, with 11%
choice are the following:
rating it very good, others as
A. Availability
B. Nearness good, and only one farmer
C. Less Price
rating as poor. In 93 percent
D. Good Service
of situations, good service

accessibility was the cause for

contentment. Some of the

other factors that influenced

their decision are the

accessibility, proximity, lower

Cost, and excellent customer

service.

Farm machinery In the study of Dumitru, M. Dumitru, M. (2018). Studies on

management is a section the Farm Machinery
(2018) in Romania, farm
of farm management that Management, 18(4). Retrieved
machinery management is a
deals with the optimization November 21, 2021, from
of the equipment phases of branch of farm management https://bit.ly/3qXrhHn
agricultural production.
concerned with optimizing
The importance of this part
agricultural production's
of farm management is
increasing more and more, equipment phases. Because
because a modern
contemporary agriculture is
agriculture is based on
built on functioning machinery,
performing machinery. As
a result, the quality this aspect of farm
management of
management is becoming
agricultural products
increasingly important. As a
represents the activity of
planning, organization and result, quality management of
control undertaken by one
agricultural products is
or more persons in order to
defined as the activity of
combine the factors that
lead to the increasing planning, organizing, and
quality of the obtained
controlling carried out by one
products, in the conditions
or more people to combine
of internationalization of
human activity. the factors that lead to an
In any farm, the
increase in the quality of the
machinery management is
products obtained in the
a very important part of
this business. Among the context of globalization of
machines used in farm, in
human activity. Machinery
this paper we referred to
management is a critical
tractors and harvesting
machines, because we component of every farm's
considered them the most
operation. In our research, we
representative for
machinery park of a farm. picked tractors and harvesting
The harvesting machines,
equipment as examples of
especially the combines,
farm machines because we
are some of the most
complex machines used in thought they were the most
modern agriculture that is
typical of a farm's machinery
why the increasing of their
park. Harvesting equipment,
productivity is very
important in farm particularly combines, are
machinery management.
among the most complicated
The paper presents some
devices in contemporary
new aspects concerning
these machines, taking in agriculture, and so enhancing
consideration the latest
their productivity is critical in
development at world
farm machinery management.
level. It is very clear that
agriculture is of great The study discusses some
importance, not only to the
novel characteristics of these
people, but in the country
robots, considering the most
as a whole. Steps and
measures should be taken recent developments on a
to improve agriculture
global scale. Agriculture is
ways, thus making it a
undeniably essential, not just
powerful sector to trade
for. Special attention to the people but also to the
should be given to this
country as a whole. This study
sector so that farmers use
emphasized that the design
the latest technology for
agriculture that results in used and the manufacture of
higher yield. Better the
these complicated agricultural
agriculture, higher will be
the growth of the nation. In devices have progressed
order to have in our
significantly in recent years,
country a performing
especially in terms of
agriculture, we must give a
bigger attention of the farm production and design, and
machinery and of the way
interior comfort.
it is used and managed.
The extent to which
mechanization is possible
depends not so much on
engineering technology, as
on the economics of
applying the machinery.
Each year, however, the
cost of labour rises and its
availability decreases, thus
bringing ever closer the
time when all crops will be
mechanized.
Advanced technology has In the study of Amalia, Amalia, A. F., Rahayu, H. S.,
entered the agricultural Syafruddin, & Suwitra, I. K.
Rahayu, Syafruddin, and
sector in an effort to (2021). Performance of
Suwitra. (2021), about the
streamline the agricultural agricultural machinery services
production. Mechanization, performance of agricultural business in Tojo Una-Una District
one of advanced Central sulawesi. IOP
machinery servicess business
technology has Conference Series: Earth and
in Indonesia, advanced
contribution to increase Environmental Science, 782(2),
productivity and resource’s technology has infiltrated the 022062. Retrieved November 22,
efficiency in agriculture. In 2021, from https://bit.ly/3xeuFif
agricultural industry to simplify
Indonesia, the profit of
agricultural output. In
farming using agricultural
mechanization technology agriculture, mechanization, an
increased 81.61%
advanced technology, has
compared to manual
helped to boost production
technology. The full use of
agricultural mechanization and resource efficiency.
technology in rice farming
Agricultural mechanization
also increased production
technology boosted the profit
by 33.83%, also saving
manpower and production of farming in Indonesia by
costs. Targets of
81.61 percent when compared
agricultural machinery in
to manual technology. Rice
food crop are to increase
planting index, to output grew by 33.83 percent
accelerate planting time,
due to the full use of
and decrease labour cost.
mechanized agricultural
Mechanization also poses
as alternative solution of technologies, which also
labour scarcity. In the end,
saved labor and production
it will increase the
expenses. In food crops,
productivity and farmer’s
welfare. By considering agricultural machinery aims to
this strategic role and
raise the planting index,
potency, government
shorten planting time, and
intervene the development
of agricultural machinery. reduce labor costs.
The relatively expensive
Mechanization is also a viable
price of the agricultural
option for dealing with labor
machinery and distribution
of the agricultural shortages. In the end, it will
machinery are some of the
boost productivity and benefit
problems faced by the use
of agricultural machinery. farmers. The government
Moreover, individual
intervenes in the development
ownership of tractor tends
of agricultural machinery
to be uneconomical
therefore small scale because of its strategic
farmers tend to choose
importance and potency.
safer option by hiring it.
Some of the challenges
One form of government
intervention was associated with the usage of
agricultural machinery
agricultural machinery include
development through the
the comparatively high cost of
agricultural machinery
service business (UPJA), agricultural machinery and its
so that farmers are able to
distribution.
access and use
Furthermore, because
agricultural machine
without buying or owning individual tractor ownership is
machinery which are
often uneconomical, small-
unaffordable. The UPJA
scale farmers choose to hire
has function to provide
agricultural machinery them instead. Agricultural
services to farmers such
machinery development
as soil cultivation and other
through the agricultural
mechanization processes.
UPJA as business machinery service company
organization make optimal
(UPJA) was one type of
use of agricultural
government involvement,
machinery in accordance
with economic principles allowing farmers to access
and in order to provide
and operate agricultural
optimum business results
from the utilization of such machinery without having to
machinery. The application
buy or own costly machinery.
of mechanization was not
The UPJA's role is to supply
optimal yet, and UPJA was
one program that might farmers with agricultural
accelerated it. UPJA has
machinery services such as
potency stimulate modern
soil cultivation and other
agriculture and economic
at a time. Moreover, UPJA automation operations. UPJA,
as solution to a small land
as a business organization,
owned by farmers which
makes the best possible use
caused difficult access to
technology, capital, and of agricultural machinery in
market. Some
line with economic principles
mechanization in
to achieve the best possible
agriculture cultivations are
soil cultivation planting, commercial outcomes. The
harvesting, and
use of mechanization was not
postharvest. The benefit of
yet ideal, and UPJA software
mechanization in soil
cultivation is that the may help speed things up.
structure and porosity of
UPJA can simultaneously
the soil change properly. In
encourage modern agriculture
addition, soil cultivation
can improve the physical and economic growth.
properties of the soil so
UPJA was developed to
that it can ensure a
respond to farmers' limited
balance between water, air
and temperature in the access to technology, cash,
soil. The machinery also
and the market. Soil
varied in types and sizes.
Selection of the type and cultivation, planting,
size of agricultural
harvesting, and post-
machinery is generally
harvesting are all examples of
related to the area and
types of plants or agricultural mechanization.
commodity. The success
Mechanization in soil
of the development of
cultivation has the advantage
agricultural mechanization
depends on the conditions of allowing the structure and
of the agro-climate,
porosity of the soil to alter
economic system and
adequately. Furthermore, soil
culture that are in line with
the economic opportunities cultivation can enhance the
for the application of
physical features of the soil,
agricultural tools and
allowing it to maintain a
machinery.
The study aims to know balance of water, air, and
the financial and work
temperature. The types and
performance of UPJA in
sizes of the machinery also
Tojo UnaUna Central
Sulawesi especially for varied. The region and types
four wheel tractor with 85
of plants or commodities
House Power (HP) and 95
influence the type and size of
House Power (HP). The
data were collected agricultural machinery
purposively from the UPJA
chosen. The effectiveness of
program receiver and
agricultural mechanization
related stakeholder.
Financial and work depends on agro-climate,
performance analyses
economic system, and cultural
were used to value the
UPJA performance. The circumstances that are
results show that UPJA
compatible with the economic
business in farmer group
potential for using agricultural
level for both 85 HP and
95 HP tractor power were equipment and machines
economically feasible with
(Amalia et al., 2021).
RC ratio of 1.27 and 1.15
The study aims to learn about
consecutively. Tractor 95
House Power (HP) was UPJA's financial and
more efficient compared to
operational performance in
85 House Power in land
Tojo Una Una, Central
efficiency management
with values 62% and 54%. Sulawesi, particularly for four-
The theoretical field
wheel tractors with 85 and 95
capacity (Kt) tractor 85 HP
horsepower (HP). The
was the same with tractor
95 HP about 0.403 information was gathered on
ha/hour, while the effective
purpose from the UPJA
field capacity (Ke) of
program's recipient and other
tractor 95 HP was higher
compared to 85 HP. The relevant stakeholders. The
efficiency value of the
UPJA performance was
tillage field from the results
valued using financial and job
of data analysis showed
that the results were 62%, performance evaluations. The
the level of work efficiency
results demonstrate that
of the tools was still
UPJA business was
relatively good where the
efficiency level was more economically feasible at the
than 50%. This is because
farmer group level for 85 HP
cultivation area, tillage
speed and tillage duration and 95 HP tractor power, with
cultivation greatly affect
RC ratios of 1.27 and 1.15,
the level of work efficiency.
respectively. With 62 percent
The efficiency of a tractor
depends on the theoretical and 54 percent values,
field capacity and the
Tractor 95 Horse Power (HP)
effective field capacity, this
was more efficient inland
has been proven because
the efficiency obtained is efficiency management than
more than 50%.
Tractor 85 House Power.

Tractor 85 HP had the same

theoretical field capacity (Kt)

as tractor 95 HP, roughly

0.403 ha/hour, but tractor 95

HP had a greater adequate

field capacity (Ke) than tractor

85 HP. According to data

analysis, the tillage field's

efficiency value was 62

percent; yet, the tools' work

efficiency was still relatively

high, with a efficiency level of

more than 50 percent. This is

because the cultivated area,

tillage speed, and tillage

 length all impact work

efficiency. The tractor's

potential and adequate field

capacity affects its efficiency;

this is proved by the fact that

the efficiency achieved is

greater than 50% (Amalia et

al., 2021).

Material, technical, land, According to the study of Mashkov, S., Ishkin, P., Zhiltsov,
and labour resources are S., & Mastepanenko, M. (2019).
Mashkov, Ishkin, Zhiltsov, and
the basis of agricultural Methods of determining the need
Mastepanenko (2019), about
production. The for agricultural machinery. IOP
effectiveness of the methods of determining the Conference Series: Earth and
functioning of this sector of Environmental Science, 403,
need for agricultural
social production, ensuring 012079. Retrieved November 23,
machinery in Russia,
food security of the 2021, from https://bit.ly/3FJrjXL
country, depends entirely agricultural production is
on the availability of these
based on material,
production resources from
technological, land, and labor
rural producers and its
rational use. In this case, resources. The availability of
the technical resource
these production resources
plays a key role. Low
from rural farmers and their
technical equipment of
agricultural production sensible application entirely
automatically leads to a
depends on the success of
decrease in the efficiency
of implemented this sector of social production
technologies, a reduction
in maintaining the country's
of volumes in the
food security. The
production of marketable
products, the removal of technological resource is
arable land from the
crucial in this scenario. Low
cultural crop rotation and
agricultural production
the complete ruin of
enterprises. Of all the technical equipment
resources used for
immediately leads to a drop in
agricultural production,
the effectiveness of applied
technical resource is the
most expensive. Analysis technologies, a fall in the
of the technology showed
number of marketable goods
that its share in the cost of
produced, the loss of arable
grain production
technologies accounts land from the cultural crop
from 45 to 60%. Therefore,
cycle, and the destruction of
in solving the problem of
companies. Technical
minimizing production
costs, the technical resources are the most
resource is the most
expensive of all the resources
effective. At the same time,
utilized in agricultural
in a wide range of practical
ways of implementation, production. According to an
starting from the complete
analysis of the technology, it
set of machinery and
accounts for 45 to 60% of the
tractor fleet the cost-
effective machines and cost of grain production
ending with the ability to
methods. As a result, the
perform useful work with
equipment that has already technological resource is the
developed its depreciation
most effective in tackling the
life. The method of
problem of lowering
determining the need for
agricultural machinery was production costs.
developed, which showed
Simultaneously, in various
that the best level of
practical modes of execution,
technical provision is a
level that ensures reliable ranging from a complete set of
performance of all
machinery and tractor fleet to
technological operations in
the capacity to undertake
the optimal agro technical
terms, on the basis of productive work with
which the boundary
equipment that has already
conditions of technical
reached the end of its
security are developed.
depreciated life. The best

degree of technical provision

is one that guarantees the

dependable performance of all

technical activities in the most

optimal agro technical terms,

on the basis wherein the

boundary criteria of technical

security are formed.

The development of any In the study of Kadhim (2018), Kadhim, Z. R. (2018). Custom
country is measured by the hiring versus ownership of
degree of mechanization. about custom hiring versus agricultural machinery services in
Subsequently, agricultural rice production farms in Alnajaf
ownership of agricultural
operation improvements, al-Ashraf Province. Iraqi Journal
machinery services in rice
namely, the production of a of Agricultural Sciences, 49(6).
particular crop, depends production in Iraq, if custom Retrieved November 23, 2021,
on the level of agricultural from https://bit.ly/3oVPc7F
hiring status of agricultural
mechanization used for
machinery services is better
production Among small
scale farmers, or those for a specific sample than
with less than three
other possible options. The
hectares of land, one of
theoretical framework is
the principal causes of
poverty is the shortage of based on the financial method
farm power (labour
of engineering costs analysis
saving tools and
of agricultural machinery
equipment and
mechanized power). Such services to compute
a situation faced by
discounted cash flows. Data
smallholder farmers may
were obtained during the 2015
lead to a significant decline
in farm production. agricultural season utilizing
The main objective of this
cross-section data on rice-
research is to test whether
producing fields in Alnajaf
the custom hiring status of
agricultural machinery Alashraf province. The
services is better for
findings revealed that the
selected sample in
overall costs of used
comparison with the other
potential alternatives. The machinery are cheaper in
theoretical framework
terms of the purchase price,
based on the financial
approach of engineering fixed expenses, and the need
costs analysis of
for more skilled labor than
agricultural machineries
new machinery. The results
services, to calculate
discounted cash flows. The also showed that at 5%, 7%,
data were collected by
and 10% discount rates, the
using cross-section data in
net present criterion had a
rice production farms in
Alnajaf Alashraf province negative sign and was less
during 2015 farming
than zero because financing
season. The results
costs exceed total revenues
indicated that the total
costs of the used earned from agricultural
machineries are lower
machinery. Furthermore, the
purchasing price, fixed
results showed that all new
costs and requires more
powered skills than new and used agricultural
machineries. Results also
machinery investments in the
pointed out that the values
study area are unprofitable
of net present criterion had
negative sign and less based on profitability ratio
than zero at 5%, 7%, and
criteria. Custom hiring should
10% discount rates
be promoted to increase
because of the costs of
financing exceed total agricultural machinery
revenues earned from
services in the province since
agricultural machineries in
it is highly profitable for private
addition to the results
showed that the investors.
investments on all new and
used agricultural
machinery in the study
area are unprofitable
based on profitability ratio
criteria. The custom hire
should be encouraged for
enhancing the use of
agricultural machinery
services in the province
due to it is highly profitable
from the individual investor
viewpoint.
Modern machineries is In the Philippines, based on Dela Cruz, R. S. M., & Malanon,
usually applied to reduce H. (2017). State of on-farm maize
the study conducted by Dela
cost of production, ease mechanization in the Philippines ,
Cruz, R. S. M., & Malanon, H.
drudgery in labor-intensive 19. Retrieved November 24,
farm operations, ensure (2017), about the state of on- 2021, from https://bit.ly/3r3S70N
timely completion of farm
farm maize mechanization,
activities, redress scarce
modern machinery is typically
labor during peak periods,
allow more precise used to lower production
application of inputs,
costs, reduce drudgery in
precision planting, reduce
labor-intensive farm
losses and maintain
product quality. There is operations, ensure timely
considerable room for
completion of farm activities,
improving mechanization
compensate for labor
of maize in the Philippines
based on the present shortages during peak
status of on-farm
seasons, allow for more
mechanization.
precise input application,
Considering the farmers’
present practices and precision planting, reduce
preferences, general
losses, and maintain product
conditions of the
quality. Based on the current
production areas and the
limited number of units, state of on-farm
more number of scale-
mechanization in the
appropriate engine-
Philippines, there is much
powered land preparation
equipment are apparently space to improve maize
needed. As 50 percent of
mechanization. Given the
maize farmers have areas
farmers' current habits and
of one or less than a
hectare, smaller machines preferences and the general
that would facilitate
characteristics of the
operations and reduce
producing regions and the
drudgery are needed.
This study addressed the restricted number of units, it
lack of updated information
appears that more scale-
on mechanization as basis
appropriate engine-powered
of formulating relevant and
sustainable programs that field preparation equipment is
could immediately respond
required. Because half of all
to the mechanization
maize farmers work on plots
needs of the maize
farmers. Employing one of one hectare or less, smaller
shot cross-section survey
machines that simplify
design, interviews of 1,235
operations and reduce
maize farmers were
carried out in 13 major drudgery are required.
maize-producing provinces
This study is conducted to
of the Philippines covering
crop year, 2012-2013. The address the absence of
status of mechanization
current knowledge on
was expressed in terms of
mechanization as a
the percentage of farmers
using mechanical power foundation for developing
and the total maize area or
relevant and long-term
total harvest using
initiatives that could respond
mechanical power for
specific major operations, quickly to maize farmers'
percentage of farmers
mechanization demands.
owning specific machines
Interviews with 1,235 maize
used in maize, and the
total utilization of power farmers were conducted in 13
from planting to shelling
central maize-producing
maize. Given the agro-
provinces in the Philippines
ecological conditions
where maize is during the 2012-2013, using a
predominantly grown in the
one-shot cross-section survey
Philippines, the percentage
design. The proportion of
of maize farmers adopting
engine-powered machines farmers who use mechanical
for land preparation and
work and the total maize area
shelling were 44 and 66
or total harvest that uses
percent of the total number
of maize farmers, mechanical power for specific
respectively. About one-
significant operations, the
fourth of them (26%)
proportion of farmers who own
owned draft animals and
14 percent had pumps for specific maize machinery and
irrigation. Few of them
equipment, and the full use of
owned four-wheel tractors
(6%) and maize sheller power from planting to
(5%) which was also used
shelling maize were all used
for custom servicing. In
to determine the state of
terms of the total
production area prepared mechanization. Given the
or volume of maize
agro-ecological conditions in
produced using engine-
the Philippines, 44 and 66
powered machines,
shelling and land percent of maize farmers used
preparation were already
engine-powered machines for
considered moderately to
land preparation and shelling.
highly mechanized with 70
percent of the total volume Based on the finding, only 6%
of harvest passing through
of them had four-wheel
mechanical shellers and
tractors, and 5% had maize
49 percent of the maize
area prepared by engine- shellers, which were also
powered machines. Other
used for bespoke service.
production activities such
Shelling and land preparation
as planting, crop care and
drying were still done was already considered
predominantly using
moderately to highly
manual power with the use
mechanized in terms of total
of draft animals and/or
farm tools. Utilizing production area prepared or
combined sources of farm
volume of maize produced
power, namely: human,
using engine-powered
draft animals and engine-
powered machines, the machines, with 70 percent of
average total power
the total volume of harvest
utilized from land
preparation to threshing in passing through mechanical
sample provinces were
shellers and 49 percent of the
172.12 hp-hr ha-1. Sixty-
maize area prepared by
seven percent of this total
power has been utilized for engine-powered machines.
land preparation while 20
Other agricultural operations,
percent has been utilized
including planting, crop
in threshing. The
remaining power was maintenance, and drying,
utilized for harvesting
were still done mainly by hand
(6%), and the combined
using draft animals and farm
power for planting and
crop management (7%). implements. The average total
Constraints to
power used from land
mechanization were
preparation through threshing
identified and
corresponding in sample provinces was
recommendations were
172.12 hp-hr ha-1, based on a
forwarded.
combination of human, draft

animal, and engine-powered

machinery. Sixty-seven

percent of this total power was

used for soil preparation, with

the remaining 20 percent used

for threshing (Dela Cruz, R. S.

M., & Malanon, H., 2017).

Farmers in Bhutan trend to According to Kinga and Kinga, N., & Chetem, W. (2020).
own agricultural Chetem (2020), on his study An economic analysis of
machineries though the about government custom government custom hiring
individual area under farm hiring services for different services for different farm
mechanization is not farm machineries in Bhutan, machineries in Bhutan. SAARC
enough. Hiring out or in of farmers are increasingly Journal of Agriculture, 17(2), 93–
farm machineries as a purchasing agricultural 101. Retrieved November 24,
business enterprise need machinery, even though 2021, from https://bit.ly/2Zjb7N8
to be advocated. At individual farm mechanization
present the hiring rates is insufficient. The hiring out
based on the operating or in of farm machinery as a
days endorsed by business venture should be
government for the Farm encouraged. Currently, the
Machinery Corporation Farm Machinery Corporation
Limited (FMCL) is positive Limited (FMCL)’s hiring rates
and it can make good profit based on the working days
if it’s done, The most endorsed by the government
common machine which is are favorable, and it can make
power tiller fetches a profit a good profit if done. The
of Nu 0.16 M for operating most common machine, the
days of 70 days endorsed power tiller, fetches a profit of
by government. Similarly Nu 0.16 million for operating
tractor of 34 hp above days of 70 days endorsed by
power fetches the the government. Similarly, a
maximum of Nu 0.51M and tractor with a power of 34 hp
Nu 0.37 M for 34 hp power above gets a maximum of Nu
tractor respectively. The 0.51M and Nu 0.37 M for a
combine harvester which is tractor with 34 hp above. The
another very required and combine harvester, another
sought out machine by much-needed and sought-
farmers fetches a profit of after machine by farmers,
Nu 0.39 M. It is observed brings in Nu 0.39 million in
that tractors and mini profits. Tractors and small
combine harvesters make combine harvesters produce
a maximum profit annually the most profit yearly at the
at the present hiring rates current employment rates and
and the operating days for working days for the
the government hiring government hiring program.
scheme. Tractors alone Tractors alone earn a profit of
make a profit of really Nu Nu 0.51 million per year,
0.51 M in a year which necessitating a reduction in
necessitates the the custom hiring fee for this
requirement to reduce the equipment for the farmers'
custom hiring rate for convenience. All of the other
these machines for the machines are profitable, which
ease to the farmers. is beneficial for the recruiting
Others machines are all strategy.
making a profit which is The study discovered
good for the hiring
that agricultural machinery
scheme.
operation costs comprise both
The study revealed that
the operation cost of farm fixed and variable costs. The
machinery includes both
cost, return, and break-even
fixed cost and variable
figures for various farm
cost. Cost, return and
break-even data for machines provide the owners
different farm machineries
and Farm Machinery
give a confident opinion for
Corporation Limited (FMCL)
the owners and Farm
Machinery Corporation confidence to pursue the
Limited (FMCL) to take up
hiring scheme as a lucrative
the hiring scheme as a
profitable business. The enterprise. The custom hiring
custom hiring rate also
rate also provides a solid
gives a good guide on the
indication of the custom hiring
custom hiring rates to be
charged based on the charges that will be paid
operating days in the
based on the country's
country. On endorsed
operation days. FMCL would
hiring rates and
parameters by generate a significant profit
government, FMCL shall
annually based on
be able to make a huge
government-approved
profit annually especially
on tractors and mini employment rates and
combine harvesters as
conditions, notably on tractors
compared to other
and small combine
machineries by Nu 0.51M
and 0.39 M respectively. harvesters, as opposed to
All other machines are also
other machinery by Nu 0.51
making a profit annually
million and 0.39 million,
under the government
endorsed parameters. The respectively. Under the
results and the analysis
government-approved
give a confident opinion for
standards, all other machines
the machine owners and
FMCL to take up the hiring make a profit every year
scheme as it is still very
(Kinga and Chetem, 2020).
profitable based on the
national endorsed
parameters.
Agricultural machinery can According to Akram et al. Akram, N., Akram, M. W., &
assume a crucial role in Hongshu, W. (2020). Study on
enhancing and sustaining (2020), on the study about the socioeconomic factors
agricultural growth. A affecting adoption of agricultural
socioeconomic factors
comprehensive insight into machinery. Journal of Economics
affecting adoption of
the social and economic and Sustainable Development.
variables impacting a agricultural machinery in Retrieved November 25, 2021,
farmer’s capacity to from https://bit.ly/3DRw1C5
Pakistan, asserted that
purchase and utilize
agricultural machinery has the
agrarian machines for food
security in South Asia will potential to improve and
be highly valuable to guide
sustain agricultural growth
policymakers in resource
significantly. A thorough
planning and budget
allocation. Arranging understanding of the social
rented services and
and economic factors
charge-to-utilize models
influencing a farmer's ability to
are two practical ways to
expand access to acquire and use agricultural
agricultural machinery to
equipment for food security in
farmers with insufficient
South Asia would be
resources. Agricultural
machineries can improve instrumental in guiding
the return of investment in
policymakers in resource
land and labor, although
allocation and budget
large capital investments
are still required that can planning. Organizing rental
impede ownership. The
services and charge-to-use
growing demand for
models are two practical
machinery has resulted in
comparatively more approaches to give farmers
developed rental
with limited resources access
marketplaces for irrigation,
tillage and other post- to agricultural gear.
harvest procedures.
Agricultural machinery can
Numerous small
boost the return on investment
businesses are therefore
accepting access to farm in land and labor, but they still
machinery that would
demand extensive capital
otherwise be incredibly
inputs, which might make
expensive to buy through
service fee arrangements, ownership difficult. Because of
although there is still room
the increased need for
for expansion. In order to
machinery, rental
facilitate the advancement
and investment of such marketplaces for irrigation,
machinery more
tillage, and other post-harvest
effectively, it is necessary
activities have become
to better understand the
associated factors with the increasingly established.
purchase of agricultural
As a result, many small firms
machinery and the
are adopting service fee
provision of services.
Firstly, current paper arrangements to gain access
reviews country’s policy
to farm gear that would
structure which enabled
otherwise be too expensive to
the existence of such
machinery markets. It then purchase, even if there is still
uses stratified random
space for growth. It is vital to
sample of 305 wheat
understand better the
producing households for
the survey from six connected aspects of the
districts, identifying
acquisition of agricultural
variables associated with
the adoption of the most machinery and the supply of
common smallholder
services to assist the progress
agricultural machinery e
and investment of such
irrigation pumps,
threshers, and power machinery more efficiently. To
tillers. Results of
begin, the current article
multinomial probit model
examines the country's policy
show that education of
farmer, member of farmer’ framework that allowed for the
organization, livestock
establishment of such
ownership, farm size and
equipment marketplaces. The
being part of non-farm
work activities all were study then employs a stratified
significantly positive in the
random sample of 305 wheat-
adoption of farm
producing families from six
machinery. Findings also
suggest that institutions districts to uncover
and policy making
characteristics linked to
authorities not only need to
adopting the most prevalent
focus on short projects to
encourage adoption of smallholder agricultural
machinery, also there must
technology, such as irrigation
be a continuous attention
pumps, threshers, and power
to improve physical and
civilian infrastructure & tillers. The results of the
services, and ensuring the
multinomial probity model
availability of credit to
demonstrate that farmer
create an favorable
conditions where education, membership in a
agricultural machinery is
farmer's organization,
most likely to be used. The
provision of credit access livestock ownership, farm
as an integral part of
size, and participation in non-
mechanization endeavors
farm labor activities are all
can ensure sustainable
growth of agriculture sector significantly favorable factors
and reduce production risk
in farm machinery adoption.
to farmers. The developers
The findings also suggest that
and policymakers who
hope to boost farming institutions and policymakers
mechanization among
should focus not only on
farmers in the country
short-term projects to
should consider upgrading
necessities and encourage the adoption of
requirements.
agricultural machinery but
Furthermore, it is
also on improving physical
recommended that small
scale and cost-effective and civilian infrastructure and
farm machinery to be
services, as well as ensuring
introduced, thereby
credit availability, in order to
facilitating the
implementation of farm create favorable conditions in
mechanization and
which agricultural machinery
increasing the overall
is most likely to be used.
efficiency of production in
the agricultural sector. Credit availability as part of

mechanization efforts can

help secure the agriculture

sector's long-term viability and

decrease farmers' output risk.

 Developers and legislators

who want to increase farming

mechanization among the

country's farmers should

update the country's needs

and requirements.

Furthermore, it is suggested

that small-scale and cost-

effective farm machinery be

introduced, aiding farm

mechanization and enhancing

overall output efficiency in the

agricultural sector (Akram et

al., 2020).

The development of In the study of Paman et al. Paman, U., Bahri, S., Asrol, -,
agricultural mechanization Khairizal, -, & Wahyudy, H. A.
(2018), about farm machinery
has made a significant (2018). Farm Machinery
development and utilization
contribution to the success Development and utilization
of modernization process system policies for small-scale system policies for small-scale
of the agricultural system rice farming. International Journal
rice farming in Indonesia,
in many developing on Advanced Science,
agricultural mechanization has
countries today. It is Engineering and Information
because the agricultural substantially contributed to the Technology, 8(3), 701. Retrieved
mechanization is an November 25, 2021, from
success of the agricultural
essential element to
modernize agriculture and system modernization process https://bit.ly/3nJAKAi
then becomes a crucial
in many developing nations
input in agricultural
today. Because agricultural
production process. The
mechanized operations of mechanization is a necessary
agriculture have helped to
component of modernizing
increase the primary
agriculture, it also serves as a
productivity of land and
labor, to reduce production critical input in the agricultural
costs and drudgery on the
production process.
farm labors, and to
Agriculture's mechanical
improve the timeliness and
quality of farm works. operations have aided in
The development of
increasing land and labor
agricultural mechanization
productivity, lower production
(i.e., farm machinery) in
Kampar Region, Riau costs and drudgery for farm
Province is relatively low.
laborers, and improving the
The number of farm
timeliness and quality of
machines on the farm,
however, was not sufficient agricultural work.
to make full mechanized
In the Kampar Region of Riau
operations of rice farming
Province, agricultural
in the region due to
primarily poor buying mechanization (i.e., farm
capacity of farmers, limited
machinery) is still in its
government budgets to
infancy. However, due to a
purchase farm machines,
and limited access to the combination of weak farmer
financial institution (bank).
purchasing power, limited
To promote utilization farm
machines among small- government assistance for
scale farmers, tractor-
farm machine purchases, and
hiring schemes were
limited access to financial
adopted to provide farm
machinery services under institutions, the number of
farmer group’s
farm machines on the farm
management. In farming
was insufficient to mechanize
practices, the utilization of
farm machines in each rice growing in the region
farmer group is not
(bank) fully. Tractor-hiring
adequate because of
schemes were implemented
limited farm machines
availability. This paper to provide farm machinery
attempted to highlight the
services under the
farm machinery
administration of farmer
development and
utilization system policies groups to increase the use of
for small-scale rice farming
farm machines among small-
in the region. Data were
scale farmers. Due to
collected through field
surveys in the selected rice restricted farm machine
production centers from 20
availability, each farmer
districts in Kampar Region.
group's usage of farm
The interviews with
involving farmers, machines is insufficient in
government extension
agricultural methods. This
staff, and machinery
research aimed to emphasize
suppliers were conducted
in September and October the region's agricultural
2015. The results showed
machinery development and
that the agricultural
mechanization program usage strategies for small-
run by Government in
scale rice farming. Field
Kampar region has
surveys in chosen rice-
dramatically accelerated
the development of farm producing centers from 20
machinery use from year
districts in Kampar Region
to year. On the other hand,
were used to collect data.
the low purchasing power,
limited government Interviews with farmers,
budgets, and limited
government extension
farmers’ access to
employees, and machinery
agricultural credit have
decelerated the vendors were undertaken.
development of farm
The findings revealed that the
machinery on the farm
government's agricultural
level. To increase farm
machinery utilization modernization initiative in the
among small farmers, the
Kampar region has drastically
local government has
accelerated farm machinery
developed machinery-
hiring schemes to provide usage from year to year. Low
farm machinery for the
purchasing power, restricted
small farmers.
government budgets, and
Recommendations for the
future development of farmers' limited access to
increasing the use of farm
agricultural financing, on the
machinery in the region
other hand, have slowed the
are also proposed.
Therefore, the results development of farm
recommend that the
machinery at the farm level.
number of farm machines
be required to be The local government has
increased for group
devised equipment-hiring
farmers as well as
initiatives to give small
individual farmers to full
mechanized operations of farmers agricultural machinery
rice farming. The use of
to enhance farm machinery
farm machines for custom
use. Recommendations are
hiring should be
encouraged as a business also made for the region's
opportunity, and small-
future growth in expanding the
scale farmers should be
usage of farm machines. As a
helped to access credit
from financial institutions to consequence of the findings, it
finance farm machines
is recommended that the
purchasing.
number of farm equipment

necessary for complete

automated rice farming

operations be raised for both

group and individual farmers.

The use of farm machinery for

custom hiring as a business

opportunity should be

encouraged, and small-scale

farmers should be assisted in

obtaining credit from financial

institutions to fund the

 purchase of farm machines

Paman et al. (2018).

In Iran, environmental According to the study of Emami, M., Almassi, M.,

threats especially water Bakhoda, H., & Kalantari I.
Emami et al. (2018), about
bankruptcy; unfavorable (2018). Agricultural
“Agricultural Mechanization, a
conditions of Iran’s arable mechanization, a key to food
land; economic problems; key to food security in security in developing countries:
lack of proper development strategy formulating for Iran.
developing countries” in Iran,
in agricultural sector in Agric & Food Secur 7, 24.
environmental threats,
comparison with other Retrieved November 26, 2021,
economic sectors; particularly water scarcity, from https://bit.ly/3EaLjBX.
exhaustion and
unfavorable conditions of
disproportion of the
Iran's arable land, economic
mechanization feet with
conditions of the country problems, and lack of proper
were considered as the
development in the
most important problems
agricultural sector in
facing the country’s
agricultural development. comparison to other economic
Strategies are classified in
sectors, and exhaustion and
the category of defensive
disproportion of
policies with respect to the
importance coefficients of mechanization feet with
weaknesses and threats
country conditions were cited
compared to the other
as the most pressing issues
factors. Government
support policies in the confronting the country's
agricultural sector;
agricultural development.
reforming the country’s
When the significant
planting pattern according
to the climatic conditions; coefficients of weaknesses
taking into account the
and threats are compared to
relative advantage of
the other elements, strategies
agricultural production as
well as modernizing Iran’s are characterized as
mechanization feet,
defensive policies. The tactics
investing in agricultural
that were prioritized by the
research and development
and moving toward TOPSIS based on the findings
modern knowledge; given
are the ggovernment support
the large number of
policies in the agricultural
agricultural graduates in
Iran; the production or sector; reforming the country's
import of agricultural
planting patterns in response
machinery and modern
to climate change; taking into
technologies, according to
their suitability with the mind agricultural production's
country’s conditions and
relative advantage, as well as
future needs; along with
updating Iran's mechanized
strengthening of the supply
chain and maintenance feet, investing in agricultural
services were among
research and development,
these strategies that were
and advancing toward current
prioritized by the TOP-SIS
method. knowledge; because of Iran's

significant number of

agriculture graduates; and

production or import of

agricultural machinery and

 new technology based on

their fit for the country's

current and future demands

and supply chain and

maintenance services.

The findings of the study, The study by Tindowen Gallibu, Tiburcio & Tindowen,
Rice Farming Methods, Darin (Jan. 2015). Rice Farming
(2015), reported that Itawes
Tools, and Indigenous Methods, Tools, and Indigenous
rice farmers continue to use
Practices and Beliefs of Practices and Beliefs of Itawes
Itawes Farmers of traditional rice farming Farmers of Tuguegarao City.
Tuguegarao City by Retrieved November 26, 2021
practices in his research Rice
Tindowen (2015), revealed from https://bit.ly/3EebyaN.
Farming Methods, Tools, and
that the Itawes rice farmers
still practice the traditional Indigenous Practices and
ways of rice farming. Still
Beliefs of Itawes Farmers in
Itawes rice farmers are
Tuguegarao City. Rice
using the traditional tools
and equipment in planting farmers in Itawes are still
and harvesting grains. The
using traditional tools and
participants practice their
equipment to grow and
traditional animistic beliefs
for good luck and harvest their harvests. The
thanksgiving. Participants
participants practice their
are hesitant to adopt the
traditional animistic beliefs for
use of the modernized
machines in rice farming good luck and gratitude.
due to lack of financial
Participants are hesitant in
capabilities and low skills
in terms of technological embracing updated machinery
competence. Instead, they
in rice farming due to lack of
are using traditional tools
financial resources and
and equipment in
preparing the rice field, technological competency.
planting to harvesting
Instead, they use traditional
grains.
tools and equipment to

prepare the rice field, plant the

rice, and harvest the grains.

Ansoff Matrix Model Ansoff Matrix Model AQA. (2019, January). Teaching
The Ansoff matrix model The Market Development from guide: Models, theories and
sets out strategic options Ansoff Matrix Theory of Igor Frameworks Handbook - Aqa.
for a business. It classifies Ansoff, father of strategic Retrieved November 15, 2021,
strategies based on the management, is used in this from https://bit.ly/338527V.
products offered and the study. Four research
markets in which the strategies compose the matrix
business competes. analyses: market penetration,
Market penetration, in market development, new
some ways this is the least product development, and
risky strategy because it diversification. Market
involves selling more of the penetration includes the
existing products of the extension into an established
business. Market market of an existing product.
development: this strategy A growth strategy called
that takes existing market development is used
products and targets new where a new market is
customer segments. succeeding but from an
New product development: existing product. This is called
this strategy develops new product development, as a
products for existing new product is being sold in
customers an existing market. Also,
Diversification: this is a diversification means entry
risky strategy in some into a new market for a new
ways because it involves product.
new products and markets. Market Development is of
great importance to this study.
It is a growth strategy from the
Matrix of Ansoff, where the
proprietor expands its
company with existing
products in a new market or
new geographical area.
Elkington’s Triple Elkington’s Triple Bottom AQA. (2019, January). Teaching
Bottom Line Line guide: Models, theories and
The Triple Bottom Line Triple Bottom Line, a phrase Frameworks Handbook - Aqa.
was a phrase introduced introduced by John Elkington, Retrieved November 15, 2021,
by John Elkington in 1994. highlights that business from https://bit.ly/338527V.
The model highlights that performance is measured in
business performance may several ways: its finances, its
be measured in a number environmental impact, and
of ways: in relation to its how socially responsible it
finances, its environmental concerns its employees. In
impact and how socially finances, the concept is that
responsible it is in relation earnings will empower and
to employees. Elkington sustain the community as a
argued that only a whole, rather than just the
company that was CEO and shareholders.
measuring performance in Companies should strive for
all three areas was sustainability and take pains
measuring the full costs of to reduce or eliminate their
its activities. The ecological footprint in
significance of this is that if environmental impact. The
you measure all these Triple Bottom Line highlights a
areas employees are likely business’s societal impact or
to pay attention to them commitment to people in
and change their connection with people.
behaviour accordingly If it measures all these areas,
(rather than just focusing it helps improve how they
on profit). However, in treat people, both within and
reality it can be difficult to beyond the organization, and
find or agree ways of lessen their adverse impact
measuring the impact of on the environment.
business on the planet and
people.
Induced Innovation Induced Innovation Theory Hayami, Y., & Ruttan, V.
Theory Changes or disparities in the (2009.). Induced innovation in
It had generally been relative pricing of factors of agricultural development.
accepted, at least since production can impact the Retrieved November 27, 2021,
the publication of The direction of invention or from https://bit.ly/3drmmql
Theory of Wages by John innovation, according to
R. Hicks, that changes or induced innovation, which
differences in the relative John Hicks initially started in
prices of factors of his work The Theory of
production could influence Wages. According to Hicks'
the direction of invention or hypothesis, a change in factor
innovation. The induced pricing will drive the
innovation hypothesis development of technological
(IIH), that a change in innovation to lower the use of
relative input prices the factor for which the price
induces innovation to has increased compared to
economize use of the other factors. Farmers should
increasingly expensive strive to replace or utilize
input (Hicks 1932), has fewer inelastic and less
had a profound impact on responsive production
both macroeconomic and components, as they are the
microeconomic production most costly to use. As a
literature. Therefore, result, technological
technical innovations that advancements that replace
replace such inputs would such inputs would result in
guarantee less costs and lower costs and thus higher
hence more profits. In profits. To put it another way,
other words, when demand when demand for their
for their products products develops, farmers
increases, farmers are are tempted to look for
lured by changes in technical alternatives that can
relative prices to seek for replace the increasingly
technological alternatives constrained sources of
that substitute the production due to price shifts.
increasingly scarce factors Agricultural workers are
of production. unable to generate these
Here is where government breakthroughs on their own.
intervention would be Thus they must rely on public
beneficial. Agricultural research institutions to
workers cannot develop produce new technologies
these innovations translated into modernized
themselves and therefore machinery that agricultural
demand that public supply companies can sell to
research institutions local farmers. In the end, this
develop new technologies will result in the most cost-
that will then be effective reduction of farmer
transformed into unit costs.
modernized machinery that
agricultural supply firms
can sell to local
farmers. Scientists will
now study the best solution
to this problem and
respond by making the
appropriate technical
development such that
producers can efficiently
substitute the abundant
inputs for the
increasingly scarce factors.
Ultimately this will lead to a
reduction of farmer’s unit
costs in the best way.