Your SlideShare is downloading. ×
Patterns of Ownership and Use of Agricultural Machines in Ghana: Implications for agricultural mechanization policy
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Saving this for later?

Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime - even offline.

Text the download link to your phone

Standard text messaging rates apply

Patterns of Ownership and Use of Agricultural Machines in Ghana: Implications for agricultural mechanization policy

630
views

Published on

"Patterns of Ownership and Use of Agricultural Machines in Ghana: Implications for agricultural mechanization policy", presented by Nazaire Houssou at NSD/IFPRI workshop on "Mechanization and …

"Patterns of Ownership and Use of Agricultural Machines in Ghana: Implications for agricultural mechanization policy", presented by Nazaire Houssou at NSD/IFPRI workshop on "Mechanization and Agricultural Transformation in Asia and Africa", June 18-19, 2014, Beijing, China

Published in: Education, Business, Technology

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
630
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
20
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Patterns of Ownership and Use of Agricultural Machines in Ghana: Implications for agricultural mechanization policy Nazaire Houssou Xinshen Diao Frances Cossar June 18, 2014 National School of Development, Peking University, China
  • 2. INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE 2 • Recent Trends in Ghanaian Economy • Mechanization in Ghana: Historical Perspective • Current Agricultural Mechanization Policy • Specialized Mechanization Service Provision • Private Sector-Led Mechanization • Prospects for Scaling up Agricultural Mechanization in Ghana Outline
  • 3. INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Source: www.wpmap.org397
  • 4. INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE 4 Recent Trends in Ghanaian Agriculture • Middle-income country with 24 million people • Transformed economy  Increasing share of service sector : 50.6% of GDP (2013)  Decreasing agriculture share : 21.3% of GDP (2013) • But low agric. productivity and growing food needs • Increasing rural-urban migration and land/labor ratio • Rising demand for mechanization (Diao et al., 2014) • Focus on land preparation similar as earlier in South Asia (Binswanger, 1978)
  • 5. INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE 5 Mechanization in Ghana: Historical Perspective • Large state involvement in mechanization after independence (1957) • Mechanization as means for increasing power supply and freeing labor • Failures in Ghana and elsewhere in SSA • Lack of demand - low farming systems intensification (Pingali et al., 2007) • SAP/1990s led to withdrawal from direct service provision
  • 6. INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE 6 Current Agricultural Mechanization Policy • Since 2007 GoG. renewed support for mechanization • Attempts to partner with private sector • GoG. seeks low interest loans to import tractors and other agricultural machines • Sells tractors to individual farmers & AMSECs at subsidized prices with lenient repayment schedules • Loan origin dictates tractor importing country
  • 7. INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE 7 Current Agricultural Mechanization Policy 0 200 400 600 800 1000 1200 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Figure 1: Agricultural Machinery Imports Government Private market Source: Diao et al. (2012). NB: Data for 2012 is up to July 2012
  • 8. INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE 8 State-sponsored specialized service provision not viable Figure 2. Net profit of tractor investment — actual (South) Source: Houssou et al. (2013)
  • 9. INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE 9 State-sponsored specialized service provision not viable Specialized service provision: AMSEC Weaknesses • Provide only plowing services • Low operational scale: 60 ha per tractor, 1:40 farmers (Benin et al., 2012, Houssou et al., 2013) • No regional migration across rainfall zones • Frequent machine breakdowns • Lack of spare parts • Poor maintenance and lack of skilled operators
  • 10. INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Straight line plowing saves time and fuel (Upper East, Ghana) Source: Courtesy from the University of Hohenheim (Germany), 2014 Irregular plowing Straight line plowing
  • 11. INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Medium-Large Scale Farmers and Mechanization Survey (2013) Conducted in collaboration with Savanna Agricultural Research Institute (SARI) Category Sample size Tractor owners Small 768 29 Medium 850 213 Large 225 160 Total 1,843 402 What Are Farmers Doing about Mechanization? 11 Source: IFPRI/SARI Survey (2013).
  • 12. INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Tractor and Animal Traction are Both Relevant 12Source: IFPRI/SARI Survey (2013). Use tractor plowing Use animal plowing Do not plow District Non-tractor owners Tractor owners Non-bullock owners Bullock owners Ejura 108 119 0 0 26 Techiman 14 1 0 0 202 Kintampo North 58 9 0 0 154 Yendi 135 112 1 0 21 Gushiegu 172 91 5 1 31 Kasena Nankana East 99 10 31 11 9 Bawku Municipal 36 5 79 54 21 Sissala East 131 45 17 19 16 Total 753 392 133 85 480 Table 1: Distribution of mechanized plowing in the sample
  • 13. INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Emerging Private Sector-Led Mechanization 13 Gov. 11% Private 89% Source of Tractor Acquisition Number of tractors: 487. New 21% Used 79% New or Used Tractor? M. Ferguson 59% Farmtrac 13% J. Deere 9% Ford 7% Others 12% Dominant Brands Increase private ownership of used tractors, mostly M. Ferguson Source: IFPRI/SARI Survey (2013). J. Deere = John Deere, M. Ferguson=Massey Ferguson Figure 3: Sources, state, and tractor brands in the survey districts
  • 14. INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Refurbished Massey Ferguson Tractor (Ejura, Ghana)
  • 15. INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Tillage on rice field (Asutsuare, Ghana)
  • 16. INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Emerging Private Sector-Led Mechanization 16 Tractor owners started small Small 85% Medium 11% Large 4% Initial Figure 4: Farm size dynamics among tractor owners Source: IFPRI/SARI Survey (2013). Small (< 5 ha), Medium (5- 20 ha), Large (>20 ha) Small 4% Medium 25% Large 71% Current Number of tractor owners: 402.
  • 17. INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Emerging Private Sector-Led Mechanization 17 Table 4: From tractor user to tractor ownership Overall Terciles of cultivated land Lowest Middle Highest How many years hired-in tractor services before owning? (n=339) 9.7 8.8 10.3 10.2 Less than five years (%) 18.3 38.9 23.0 15.8 Five to ten years (%) 30.7 33.3 31.1 30.4 More than ten years (%) 51.0 27.8 45.9 53.8 How many years since owning a tractor? (n=397) 3.6 3.1 3.4 4.2 Less than five years (%) 77.8 78.8 82.1 72.5 Five to ten years (%) 15.4 16.7 11.2 18.3 More than ten years (%) 6.8 4.5 6.7 9.2 Mean tractors owned per farmer (n=402) 1.2 1.1 1.1 1.4 Source: IFPRI/SARI Survey (2013).
  • 18. INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Emerging Private Sector-Led Mechanization 18 Figure 5: Motivation and tractor financing Farm expansion 51% Timeliness 22% Service provision 22% Others 5% Why do owners acquire tractors? Source: IFPRI/SARI Survey (2013). Own savings (only) 87% Loans 2% Remittances 4% Others 7% Financing with own savings Number of tractor owners: 402.
  • 19. INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Emerging Private Sector-Led Mechanization 19 Overall Terciles of cultivated land Lowest Middle Highest Percentage of farmers who hire-out services First plowing (%) 83.2 82.0 81.7 85.8 Maize shelling (%) 19.5 17.2 18.3 22.8 Carting farm products and inputs (%) 35.5 38.5 38.1 29.9 Ratio of tractor owner to farmers served (median) 1:60 1:60 1:51 1:67 Number of hectares plowed per tractor (2012) 182.4 171.4 162.0 211.4 Years providing plowing services (n=302) 5.0 4.1 4.8 6.1 Table 5: Hiring-out mechanization services Source: IFPRI/SARI Survey (2013).
  • 20. INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE Emerging Private Sector-Led Mechanization 20 Table 6: Hiring-in tractor services Small Medium Large Number of non-tractor owners (n=1,441) 739 637 65 Percentage of farmers who hired services Plowing (n=750) 45.3 58.9 61.5 Shelling (n=338) 17.3 30.5 24.6 Carting (n=375) 20.0 32.3 32.3 Experience with service rental (years) Plowing 7.7 9.5 12.5 Shelling 5.6 6.3 6.6 Carting 6.3 7.0 11.8 Source: IFPRI/SARI Survey (2013). Developing tractor service rental market
  • 21. INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE 21 Prospects for Scaling up Agricultural Mechanization in Ghana • Mechanization unlikely to scale up without development of private channels • Support ownership among farmers who are providers • Transfer ownership decision and choice to farmers • Policies to overcome credit market failures • Seek flexible machinery loan sources • Develop appropriate machines import channels for an easy exit in the medium and long terms
  • 22. INTERNATIONAL FOOD POLICY RESEARCH INSTITUTE THANK YOU !