Identifying improvements in national institutions and policies for wider adoption of two wheeled based mechanization at the Planning and Review meeting in Ethiopia- February, 2014

1. Identifying Improvements in National
Institutions and Policies for a wider
adoption of 2WT-based Mechanization
Moti Jaleta, Branka Krivokapic-Skoko, Paswel Marenya
Project Review and Planning Meeting
9th February 2015, Hawassa, Ethiopia

2. Overview of Objective 3
Policy review
Identify Improvements in National Institutions and Policies for wide
adoption of 2WT-based Mechanization
Review of
National
Policies
Policy options for wider delivery
Global
success
stories
Evidence based
policy
recommendations
Evaluate
alternative
policy options
Policy workshops
identify gaps,
opportunities and
constraints

3. Review of Global Success
Stories on Mechanized CA

4. Analytical framework
Level of
mechanization
(source of
power)
Tillage practices
Conservation Agriculture Conventional Tillage
1 2
Motorized/
mechanical
A  Direct seeding/planting
using 2WTs, 4WTs
 No soil disturbance (at least
not in less than 4-5 years to
break the hard pan).
 Planted on seedbeds prepared
using 2WTs, 4WTs under
conventional tillage
 Land is cultivated each cropping
season
Draft animal B  Direct seeding/planting
using draft animal power
 Seedbed preparation under
conventional tillage using draft
animal power
Manual C  Planting in basins made
manually
 Direct seeding using Jab-
planter and other hand tools
 Seedbed preparation using
human muscle and hand tools
each cropping season (mainly
female labor in most SSA
countries)
Matrix of agricultural mechanization and CA gradients
Drivers of CA
DriversofMechanization

5. Zooming to the intersection of core
components
● Tillage (CA, CT)
● Mechanization (implements + farm power)
● Scale of operation (Small, Medium, Large)
Zero/Min-
Tillage
(SI)
Mechanization
Scale
(Farm size)
Smallholder
Mechanized
CA
Mechanized
CA
FACASI
SIMLESA

6. Google scholar hits
0 500,000 1,000,000 1,500,000 2,000,000
Smallholder Mechanized
Conservation Agriculture
Mechanized Conservation
Agriculture
Mechanized Agriculture
Agricultural Mechanization
Mechanization
Conservation Agriculture
With all the challenges,
FACASI is trying to fill a
big caveat in literature.

7. Selected Success Stories

8. Key for success: Brazil (Ekboir, 2003)
● Gradual and learning by doing
 Wave 1 - weed management through herbicide -1970s
 Imperial Chemical Industry (ICI) on Paraquat
 Monsanto on glyphosate
 Wave 2 - Credit facility from Government and Wbank-1980s
 Supporting watershed management
 Zero-tillage as a support to SW management
 Wave 3 - Expansion of agriculture in Cerrados through new settlements -1980s
 Wave 4 - Reduced prices of Glyphosate by Monsanto-1990s
 From 40$/lt to 10$/lt
 Research support by EMBRAPA and Monsanto on adoption constraints of Zero
tillage:
– Lack of packages adapted to local conditions
– Lack of planters adequate to smallholder farmers
– Insufficient extension system

9. Integrated solutions to address diverse constraints
(Brazil…. Ekboir, 2003)
● Actions
 METAS by Monsanto
 Integrated solutions
targeting adoption
constraints
Monsanto
(Herbicide)
EMBREPA
(Research)
Trevo
(Fertilizers)
Agroceres
(seeds)
Semeato
(Planters)
45,000
820,000
0
200,000
400,000
600,000
800,000
1,000,000
1993 1997
Area under Zero-tillage (ha)
(in State of Rio Grande Do Sul)

10.  Floods and cyclone devastated livestock (including draft
oxen/bullocks)
 The President removed restrictions on Chinese 2WTs imposed
due to quality
 World Bank’s push on market liberalization in Bangladesh
 Reduction in import tariffs
 Increased import of small engines, tillers and pumps
 Currently:
 > one million irrigation pumps
 Close to 400,000 2WTs
 Tens of thousands of rice, wheat and maize threshers
 80% of the 8.2 million ha of cultivated land is mechanized
Key for success: Bangladesh (Biggs et al., 2011)

11. Key for success: Kazakhstan
 FAO and CIMMYT introduced CA during 2002-2004
 Government support + active input supply sector
 Subsidy on locally produced herbicides
 Facilitate importation of no-till seeding equipment
 Credit for investment in no-till seeding equipment

12. Key for success: Zimbabwe (Marongwe et al., 2011)
● From hoe-based seed basin preparation to
animal-/tractor-drawn direct seeding
● Establishment of CA Task Force in 2003
 CGIAR, MoA, NGOs, University… supported and
coordinated by FAO
Training 600 ext. officers + 8,000 farmers
Yield benefit of direct seeder over ripper and basins
● Between 2004/05 and 2009/10, CA/CF
expanded:
From 4,700 to 88,262 HHs
From 214 to 396 Wards

13. Drivers of Mechanization and
Conservation Agriculture
● Labor shortage (high land-to-labor ratio)
● Credit facilities in expansion of machinery use
Kazakhstan: credit facilities to farmers to buy no-till
seeding equipment
Brazil: during the wave 2 of zero tillage expansion, the
government of Brazil and the world Bank facilitated credit
system for watershed management
● Import policy
 Kazakhstan: Opened up importation of no-till seeding equipment,
 Bangladesh: Lifted the import ban on Chinese made diesel engine
2WTs

14. ● Availability of local manufacturers of farm implements
 Brazil: Direct seeder for tractor, draft animal and manual operations
● Extension services
 Kazakhstan
 Brazil
● Champions/Pioneers/Lead actors
 E.g., Herbert Bartz in Brazil, adopted reduced tillage as a remedy for soil
erosion (Ekboir, 2003).
 Brian Oldreive …“God’s Blanket” in Zimbabwe (Andersson and Giller,
2012)
Drivers of Mechanization and
Conservation Agriculture…

15. Review of National Policies

16. Review of National Policies Affecting
the expansion and Development of
Agricultural Mechanization
Tanzania

17. Agriculture and Farm power setup -Tanzania
● 44 million ha arable land, only 23% is cultivated
(MoAFSC, 2006)
Farm tools and power source
Amount
(in 2006)
Tractors 7,200
Animal drawn ploughs 585,000
Hand hoe 14,000,000
Oxen 1,300,000
Source: MoAFSC, 2006 on TAMS

18. Inventory of policies and strategies
related to Agricultural Mechanization
● Structural Adjustment Program (SAP-1980s)
● Agricultural Sector Development Strategy (ASDS)-
2001… Subsidy initiative on power tiller
● National Strategy for Growth and Reduction of Poverty
(NSGRP/MKUKUTA)-2005
● Tanzania Agricultural Mechanization Strategy
(TAMS)-2006
● Agriculture First (Kilimo-Kwanza)-2009
● National Agriculture Policy-2013

19. Agricultural Sector Development Strategy (ASDS)-2001
● Four incentive structures supporting agricultural
Machineries:
 Financial incentives to local tech institutes to design and
develop appropriate farm tools and machinery that are suitable for
different categories of farmers and farming systems.
 Strengthen support services to promote mechanization,
especially among small-scale farmers,
 Financing of research to accelerate development of appropriate
smallholder agricultural mechanization and agro-processing
technologies, and
 Finance research for the development of appropriate
mechanization for smallholder farmers and agro-processing
technologies.

20. Regulatory and Quality Standard Checks
● Tanzanian Bureau of Standards
● Mandated to ensure quality of goods to be imported
● Center for Agriculture Mechanization and Rural
Technology (CAMARTEC)
 Test imported tractors and other farm machineries on suitability to
soil conditions

21. Tariffs and Subsidies on Agricultural
Machinery Imports
● Import tariffs are waived for most agricultural
machineries
● BUT, taxes on machinery spare parts and fuel

22. Number of tractors and power tillers
imported during 1982-2011
0
1000
2000
3000
4000
5000
6000
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Big tractors
Small tractors
Total number of tractors imported
Effect of Kilimo Kwanza in 2009

23. Policies Affected domestic
machinery trade and services
● Government established agricultural window at
Tanzania Investment Bank (TIB)
 Better access to investment fund in agriculture
● Credit access to National Service Cooperation
Sole Agri-Machinery Project (SUMA JKT)
 Government owned Military Agro-dealer (importer
and distributor)

24. Conclusions
● More public based machinery delivery system through
subsidy
 Might increase availability of agricultural machineries
 BUT, subsidized delivery system might not be sustainable
 Need for clear exit strategy and defined role for public and
private sector
● For better expansion of mechanization
Demonstrate benefits of agricultural machinery use for
farmers
Support farmer experimentation and absorb associated risk

25. Challenges
● Lack of coordination in linking farmers’ demand
for and supply of machineries and services
● Sunk cost nature of farm machinery investments
● Lack of machinery maintenance services in rural
areas

26. Ethiopia
Review of National Policies Affecting
the Expansion and Development of
Agricultural Mechanization

27. Three Historical Eras
● Emperor’s era (Cohen, 1987)
1970s – Importation of duty free farm machinery and
parts to large scale private farms.
 Access to credit and foreign exchange for buying agri.
machineries
 Subsidized loans at 7%
 Fuel tax waivers
- Resulted in expansion of large scale wheat farms
and eviction of smallholder tenants.

28. Three Historical Eras …
● Dergue Government (1974-1991)
 Appropriated private farms
 Establish and development of State farms
 Economic collaboration with USSR
 Established Nazareth Tractor Assembling Plant
NTAP (1984)
 Tractors from NTAP provided to State Farms and best
performing Smallholder Producers’ Cooperatives
Mechanization to large scale and capital intensive farms.

29. Three Historical Eras …
● Current Government (since 1991)
 1992 – NTAP renamed as Adama Agricultural
Machinery Industry (AAMI)
 2010 – AAMI transferred to Metals and Engineering
Corporation (METEC)
 2004 – Establishment of Agricultural Mechanization
Service Enterprise (AMSE)

30. Development Programs since 2002
- All focus on enhancing agricultural production and productivity through
use of modern/improved agricultural technologies
- >10% of Government’s budget has been spent on agricultural
development
- BUT, like improved seed and fertilizer, agricultural mechanization and
its development plan didn’t get much attention.
2014/152004/05 2005/06 2009/10 2010/112002/03
Sustainable
Development and
Poverty Reduction
Program (SDPRP)
Plan for Accelerated
and Sustained
Development to End
Poverty (PASDEP)
Growth and
Transformation
Plan (GTP-1)

31. Draft document on Agricultural
Mechanization Strategy
● Comprehensive:
 Designing machineries
 Importing machineries/spare parts
 Assembling
 Distribution
 Ownership
 After-sale service
Ethiopian National
Agricultural Mechanization
Strategy
Vision, Systemic Challenges
and Strategic Interventions
August 2014
Aims at:
• Increasing agri. mech use from 0.39KW/ha to 1KW/ha
• Reduce animal draft power in agri. by 50%
• Others,

32. Import policy on agri. machineries
and its challenges
● Government support both machinery imports and
domestic manufacturing/assembling plants
● Exemption of import taxes on farm machineries_ to
investors with the privilege.
● Tax on spare parts and parts imported to be assembled
in the country
● Pressure on Government from manufactures to balance
the incentive structure, more tax on Completely Knocked
Down Kits.

33. Conclusions
● Discontinuity in the efforts made due to different
economic structure (strategies in agricultural
development and land tenure system) under
different governments
● No clear agricultural mechanization development
policy
● Mechanization strategy is under development.

34. Zimbabwe

35. Zimbabwe
● Recently received some policy documents and
about to start to do a comprehensive review

36. Kenya

37. Kenya
● Trying to get policy and strategy documents on
agricultural mechanization and any other policies
affecting mechanization

38. Thanks

39. Annex

40. Overview of Objective 3
3.1. Review of Policies Affecting 2WT-based
Mechanization
 3.1.1. Review of global success stories on
mechanized CA
 3.1.2. Review of national policies affecting mechanization
(import taxes and regulation, local movement of
machinery, etc.), agricultural profitability (e.g.
subsidies), industrialization, and businesses and
enterprises.

41. Overview of Objective 3…
3.2. Policy Options for wider delivery of 2WT-based
mechanization
3.2.1. Organized national policy workshops to identify Policy gaps,
constraints and opportunities.
3.2.2. Evaluation of alternative policy options for a wider delivery of
2WT-based mechanization to smallholder farmers - particular to
resource poor and women farmers.
3.2.3. National policy workshops to discuss evidence-based
recommendations.

42. Distribution of tractors in the developing World
(1960-2000)
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
Asia Latin
America and
Caribbean
East Region Sub-Saharan
Africa
1961 1970 2000
Substantial growth over time,
except in SSA where it declined
after 1970’s.
Source: Mrema et al., 2008
Due to Structural Adjustment
Programs (liberal market
economy), SSA governments
lifted subsidies on agricultural
mechanization.
POLICY EFFECT