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

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

Review of Global Success

Stories on Mechanized CA

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

Dri

vers

of

Mech

an

izati

on

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

Google scholar hits

0 500,000 1,000,000 1,500,000 2,000,000

Smallholder MechanizedConservation Agriculture

Mechanized ConservationAgriculture

Mechanized Agriculture

Agricultural Mechanization

Mechanization

Conservation AgricultureWith all the challenges,

FACASI is trying to fill a

big caveat in literature.

Selected Success Stories

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

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)

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)

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

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

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 policyKazakhstan: Opened up importation of no-till seeding equipment,

Bangladesh: Lifted the import ban on Chinese made diesel engine

2WTs

● 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…

Review of National Policies

Review of National Policies Affecting

the expansion and Development of

Agricultural Mechanization

Tanzania

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

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

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.

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

Tariffs and Subsidies on Agricultural

Machinery Imports

● Import tariffs are waived for most agricultural

machineries

● BUT, taxes on machinery spare parts and fuel

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

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)

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

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

Ethiopia

Review of National Policies Affecting

the Expansion and Development of

Agricultural Mechanization

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.

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.

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)

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)

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,

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.

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.

Zimbabwe

Zimbabwe

● Recently received some policy documents and

about to start to do a comprehensive review

Kenya

Kenya

● Trying to get policy and strategy documents on

agricultural mechanization and any other policies

affecting mechanization

Thanks

Annex

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.

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.

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 LatinAmerica and

Caribbean

East Region Sub-SaharanAfrica

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