Agrimech July 2015

AGRI MECH MONTHLY NEWSLETTER

Robert Lucas, Jr. AMERICAN ECONOMIST, UNIVERSITY OF CHICAGO NOBEL MEMORIAL PRIZE IN ECONOMIC SCIENCES (1995)

BUSINESS CYCLES AND RECESSION

ISSUE 3 | JULY 2015

A.S.SUBBARAO Sr. MANAGER - AGRONOMY SBU - SOUTH, AGRONOMY DEPARTMENT NETAFIM

Sub surface drip irrigation for high production in Sugarcane crop

Farm Mechaniza on in my country is always associated with some integral hitches like, fragmented lands, poor buying capacity of farmers, lack of quality machines for farm opera on, inadequate knowledge of the users about machines and insufficient awareness building ac vi es.

The country's agricultural produc on has stagnated at a me when the broader elements of the economy have grown. In order to sustain an overall growth rate of 9 per cent it is impera ve for the agricultural sector to grow at 4 per cent. Though India has achieved self‐sufficiency in food‐grain produc on, the last couple of decades have seen the growth rate of food‐grain produc on (1.5 per cent) lag behind that of popula on (1.9 per cent).

Mechaniza on of agriculture is an important factor promo ng to higher output of the agricultural farm and thereby increasing the profitability of the farming prac ces. The mechaniza on of farm is determined by a set of inter‐related factors such as size of farm, irriga on, access to ins tu onal credit, government extension support services, experience of the farmers.

Though, India is one of the top countries in agricultural produc on, in terms of farm mechaniza on, it is behind the world average. For instance, the tractor density of India is about 16 tractors for 1,000 hectares, while the world average is 19 tractors and that of USA is 27. Clearly, there is significant opportunity for mechaniza on of agriculture.

Indian policy makers have ini ated preliminary support to farm mechaniza on by including it as focus area in broader schemes such as in Rashtrya Krishi Vikas Yojna and Macro Management of Agriculture schemes, concerted focus on this sector is s ll lacking. A lot more focus needs to be brought in to further enhance the growth of this sector and tap the immense poten al it offers.

In conclusion, though mechaniza on has improved the state of agriculture in certain parts of the country, it is s ll a bo om of the pyramid story and it will remain so unless concrete measures are taken to propel farmers towards adop on of efficient farm mechaniza on prac ces especially in the farm equipment space. Given the right focus from various stake holders, farm mechaniza on has the poten al to play a cri cal role in increasing farm produc vity and improving rural employment genera on.

The idea of publishing AGRIMECH was derived from the above resistance which farmers are facing in my country. It is the unique monthly magazine includes ar cles by interna onal authors on agricultural machinery manufacturers covering the technologies, personal experiences, business forecast and new ideas for agricultural machinery and farm equipment including tractors, res and its allied industry.

AGRI MECH is your best adver sing solu on in targe ng all aspects and markets of agriculture. As an adver ser, you have the opportunity to showcase your company to thousands of poten al buyers who are looking to buy your products & services. This magazine will be serving among the top manufacturers, dealers, distributors and farmers all around the globe.

We believe that there is no top; there are always further heights to reach. Team AGRI MECH is commi ed to deliver the most relevant and improved informa on of your interest in every issue, which will lead to achieve this magazine new heights.

We hope that this magazine will contribute to make your business more stable and profitable.

Our Team S K Ali Managing Editor projects@pixie.co.in Raji Naqvi Adver sement Manager rajinaqvi@gmail.com Dr. Said Elshahat Abdallah Advisor Kafrelsheikh University, Egypt dr.selshahat@gmail.com Naveen Rana Graphic Designer design@pixie.co.in Raza Jarrar Webmaster info@netnovaz.com

Editorial policy is independent, Views expressed by authors are not necessarily those held by the editors.

Registered as Monthly Magazine by Registrar of Newspapers for India.

Licensed to post at Karnal HPO under postal regn. No. PKL‐ 91/2007‐2009 Editorial and adver sements may not be reproduced without the wri en consent of the publishers. Whilst every care is taken to ensure the accuracy of the contents of AGRI MECH. The publishers do not accept any responsibility or liability for the material herein.

Publica on of news, views and informa on is in the interest of posi ve development of Global Farm Mechaniza on. It does not imply publisher’s endorsement.

Unpublished material of industrial interest, not submi ed elsewhere is invited.

The submi ed material will be published a er going through the relevancy of the magazine subject and may be returned in case of not found appropriate.

Publisher, Printer: S K Ali on behalf of R K Media and Communica ons, Delhi Printed at: Jaiswal Prin ng Press, Chaura Bazar, Karnal Published at: 821, Sector – 13, Urban Estate, Karnal – 132 001 (Haryana) Editor in Chief: S K Ali All legal matters are subject to Karnal jurisdiction.

Contents 05

Commercial SigniďŹ cance Of Agriculture

Myth�busting for African agriculture

26

10

Farm Mechaniza on and its Importance

Bankers in Punjab (India) betting big on farm mechanization sector

30

13

Mechaniza on in Ghana: Emerging demand, and the search for alterna ve supply models

India gets its Exhibition Industry Study report

31

20

China Agricultural Equipment Market

Sub surface drip irrigation For high production in Sugarcane crop

32

24

Chinese companies targeting the Africa agricultural market

COMMERCIAL SIGNIFICANCE OF AGRICULTURE Theodore Schultz was awarded the Nobel Prize for his work in development economics of agriculture, began his acceptance speech for the 1979 Nobel Prize in Economics observing: “Most of the people in the world are poor, so if we knew the economics of being poor we would know much of the economics that really ma ers. Most of the world's poor people earn their living from agriculture, so if we knew the economics of agriculture we would know much of the economics of being poor” (Shultz, 1979) World popula on is forecast to grow from 7 to 9 billion by 2050, 1 in 6 is already hungry and food produc on must increase by 70–100% if it is to feed this growing popula on. No single solu on will solve this problem but recent developments in the gene c technologies of plant breeding c a n h e l p t o i n c re a s e a g r i c u l t u ra l efficiencies and save people from hunger in a sustainable manner, par cularly in African na ons where the need is greatest.

These advances can rapidly incorporate new traits and tailor exis ng crops to meet new requirements and also greatly reduce the me and costs taken to improve local crop varie es.

Thirty six years on we s ll find that people in developing countries who depend on agriculture for their living are typically

much poorer than people who work in other sectors of the economy and that they represent a significant share, o en the majority, of the total number of poor people in the countries where they live.

Achieving the Millennium Development Goal (MDG) of halving poverty by 2015 requires finding ways to increase the incomes of those people. What can government do to foster that kind of income growth? Specifically, how can we improve development co‐opera on,

“Most of the people in the world are poor, so if we knew the economics of being poor we would know much of the economics that really matters.

Most of the world's poor people earn their living from agriculture, so if we knew the economics of agriculture we would know much of the economics of being poor” (Shultz, 1979) trade and agricultural policy to be er promote agriculture’s contribu on to poverty reduc on?

Lewis (1955) was one of the first of many development economists a emp ng to explain the paradox. He viewed economic development as a process of reloca ng

factors of produc on from an agricultural sector characterized by low produc vity and the use of tradi onal technology to a modern industrial sector with higher produc vity. Lewis’s t h e o r y w a s Dr. Theodore Schultz i n t e r p r e t e d a s Nobel Prize Winner, 1979 in Economics Observing a d v o c a n g industrializa on and used to jus fy gove r n m e nt p o l i c i e s t h at favo re d protec on for domes c industries and ex p l i c i t l y o r i m p l i c i t l y, taxe d t h e agricultural sector. That theory and it implica ons for policy have been largely debunked by later work and the degree to which economic policies of developing countries discriminate against agriculture has lessened drama cally in recent decades.

Many recent studies focus specifically on quan fying the rela onship between agriculture and poverty. Bresciani and Valdes (2007) frame their analysis in terms of three key channels they say links agricultural growth to poverty: 1) labour market, 2) farm income, and 3) food prices.

They provide a theore cal framework for inves ga ng the quan ta ve importance

Contact : DHARMESH ENTERPRISES PVT. LTD. B28/B, GR. FLR., GHATKOPAR INDL. ESTATE L.B.S. MARG, GHATKOPAR (WEST) MUMBAI, MAHARASHTRA 400086 Mobile : 09323039797 Email : heatgun@vsnl.com

05

of those various channels and then report findings from six country case studies.

They conclude that when both the direct and indirect effects of agricultural growth are taken into account, such growth is more poverty reducing than growth in nonagricultural sectors.

Bresciani and Valdes emphasize especially that agriculture’s contribu on to poverty reduc on is consistently greater than is agriculture’s share of GDP. For their case study countries, agriculture’s contribu on came mainly through the labor market channel. They cau on however that growth strategies based on such findings may not be valid in circumstances where the agricultural output mix does not feature labor intensive crops and livestock ac vity. Equally problema c for such a strategy is that much progress in agriculture historically has come from the

introduc on of labor saving technical change.

According to an American economist, David Gale Johnson, as a country develops economically, the rela ve importance of agriculture declines. The primary reason for this was shown by the 19th‐ century German sta s cian Ernst Engel, who discovered that as incomes increase the propor on of income spent on food declines. For example, if a family’s income were to increase by 100 percent, the amount it would spend on food might increase by 60 percent; if formerly its expenditures on food had been 50 percent of its budget, a er the increase they would amount to only 40 percent of its budget. It follows from this that, as incomes increase, a smaller frac on of the total resources of society is required to produce the amount of food demanded by the popula on.”

In looking back upon the history of the more developed countries, one can see t h at a g r i c u l t u re h a s p l aye d a n important part in the process of their enrichment. For one thing, if development is to occur, agriculture

must be able to produce a surplus of food to maintain the growing non‐ agricultural labor force. Since food is more essen al for life than are the services provided by merchants or bankers or factories, an economy cannot shi to such ac vi es unless food is available for barter or sale in sufficient quan es to support those engaged in them. Unless food can be obtained through interna onal trade, a country does not normally develop industrially un l its farm areas can supply its towns with food in exchange

Dr. David Gale Johnson American Economist

for the products of their factories.

Economic development also requires a growing labor force. In an agricultural country most of the workers needed must come from the rural popula on.

Thus agriculture must not only supply a surplus of food for the towns, but it must also be able to produce the increased amount of food with a re l a ve l y s m a l l e r l a b o r fo rc e .

Agriculture may also be a source of the capital needed for industrial

development to the extent that it provides a surplus that may be converted into the funds needed to purchase industrial equipment or to build roads and provide public services.

For these reasons a country seeking to develop its economy may be well advised to give a significant priority to a g r i c u l t u re . E x p e r i e n c e i n t h e developing countries has shown that agriculture can be made much more produc ve with the proper investment in irriga on systems, research, fer lizers, insec cides, and herbicides.

Fo r t u n ate l y, m a ny a d va n c e s i n applied science do not require massive amounts of capital, although it may be necessary to expand marke ng and transporta on facili es so that farm output can be brought to the en re popula on.

One difficulty in giving priority to agriculture is that most of the increase in farm output and most of the income gains are concentrated in certain re g i o n s ra t h e r t h a n ex t e n d i n g throughout the country. The remaining farmers are not able to produce more and actually suffer a disadvantage as farm prices decline. There is no easy answer to this problem, but developing countries need to be aware of it; economic progress is consistent with lingering backwardness, as can be seen in parts of southern Italy or in the Appalachian area of the United States. food is available for barter or sale in sufficient quan es to support those engaged in them. Unless food can be obtained through interna onal trade, a country does not normally develop industrially un l its farm areas can supply its towns with food in exchange for the products of their factories.

Economic development also requires a growing labor force. In an agricultural country most of the workers needed must come from the rural popula on.

Thus agriculture must not only supply a

06

surplus of food for the towns, but it must also be able to produce the increased amount of food with a rela vely smaller labor force.

Agriculture may also be a source of the capital needed for industrial development to the extent that it provides a surplus that may be converted into the funds needed to purchase industrial equipment or to build roads and provide public services.

For these reasons a country seeking to develop its economy may be well advised to give a signiďŹ cant priority to agriculture.

Experience in the developing countries has shown that agriculture can be made much more produc ve with the proper investment in irriga on systems, research, fer lizers, insec cides, and herbicides.

Fortunately, many advances in applied science do not require massive amounts of capital, although it may be necessary to expand marke ng and transporta on facili es so that farm output can be brought to the en re popula on.

One diďŹƒculty in giving priority to agriculture is that most of the increase in

farm output and most of the income gains are concentrated in certain regions rather than extending throughout the country.

The remaining farmers are not able to produce more and actually suer a disadvantage as farm prices decline. There is no easy answer to this problem, but developing countries need to be aware of it; economic progress is consistent with lingering backwardness, as can be seen in p a r t s o f s o u t h e r n I ta l y o r i n t h e Appalachian area of the United States.

08

Farm Mechaniza on and its Importance Mechaniza on of farming during the 20th century led to sweeping changes in agriculture. Tractors, combines, harvesters, and other farm machines help farms produce more.

Consequently, the trend since the early part of the 1900s is that fewer people can farm more land. Farm equipment is a major expense for farmers, so it is difficult for small farms to keep up with the latest technological innova ons.

Machinery has also become more complicated and specialized. A simple tractor used on a small farm for many d ifferent ta s ks ca n n o t b e u s ed efficiently on a large‐scale farm.

Farm mechaniza on means the usage of machines and technology in the agriculture sector. The use of tractor, tube‐wells and plant protec on measures are included in the farm m e c h a n i za o n . S o i n t h e fa r m mechaniza on the use of machinery is greater as compared to the labor.

Mechaniza on of agriculture is an important factor promo ng to higher output of the agricultural farm and thereby increasing the profitability of the farming prac ces. The mechaniza on of farm is determined by a set of inter‐related factors such as size of farm, irriga on, access to ins tu onal credit, government extension support services, experience of the farmers.

Agricultural chemistry and farm

mechaniza on have developed together over the last century, and they have drama cally increased farm efficiency and produc vity.

The Diesel‐oil‐powered tractor was developed by Benjamin Holt, the A m e r i ca n i nve nto r, i n 1 9 0 4 i n conjunc on with the need for efficient applica on technologies for agricultural chemicals (fer lizers, pes cides) and water.

Today's tractors, cul vators, combines reapers, irriga on machines, computer‐based applica on technology, and sophis cated GPS “Most young people are interested in new technologies and modern innovations. Most are also looking for work that is less labor intensive,” Rex Bingabing said. so ware are all enabled by chemical innova ons, such as petrochemical fuels, structural materials (metal alloys and advanced plas cs), re t e c h n o l o g y, a n d c o m p u n g electronics.

Agriculture today applies so ware that uses GPS signals to guide tractor drivers along the field while plan ng and harves ng crops. The so ware can also be used independently to find out which area has not been covered by the agricultural machine.

Agricultural mechaniza on is a

produc on technology. In some countries, there are different levels of m e c h a n i za o n a n d a p p l i c a o n development available. This difference can be monitored, especially in the agricultural business. In other words, mechaniza on, agricultural business in each business, depending on the technical and economic structure is being implemented at different levels.

In underdeveloped countries, per acre yield is low because our farmer is not using the machines and technology in the agricultural opera on. Keeping in v i e w t h e p e r fo r m a n c e o f fa r m mechaniza on, most of developing countries has decided to provide loans to the farmers to purchase of tractors, farm equipment and machineries.

Importance or Advantages of Farm Mechaniza on Rex Bingabing, execu ve director of the Philippine Center for Postharvest Development and Mechaniza on (PhilMech), the agency under the DA tasked to develop and disperse farm mechaniza on technologies, said that mechaniza on can help a ract more young people to farming, and more farmers are becoming interested in mechaniza on.

“Most young people are interested in n e w te c h n o l o g i e s a n d m o d e r n innova ons. Most are also looking for

10

work that is less labor intensive,” he said.

He said that by mechanizing farm work, drudgery could be greatly reduced, which would make farming more a rac ve to the youth.

“Many had preferred taking training in construc on works like welding or metal fabrica on. But if they will realize that farm mechaniza on would take away drudgery and increase their produc vity, they would be encouraged to engage in farming opera ons,” Bingabing added.

“Those who are doing the tradi onal [more on manual] farming are all over 40. The younger ones are usually the operators of four‐wheel tractors, combine harvester and transplanter. It seems that it’s harder to convince older people to adopt modern technologies. Young people are more open to innova ons,” Bingabing said.

The mechaniza on of farm opera ons can increase produc on by five percent and reduce post harvest losses to five percent to 10 percent, or even lower. Post harvest losses in Philippine farms are about 15 percent to 20 percent.

“Every me we go around the country for field inspec ons, the farmers are the ones asking how to avail of the machineries. In the coming years, there would be a lot of farmers acquiring machineries,” Bingabing said.

A trend in Asia The study Agricultural Mechaniza on at a Glance Selected Country Studies in Asia on Agricultural Machinery Development wri en by Dr. Peeyush Soni of the Asian Ins tute of Technology in Thailand and Dr. Yinggang Ou South China Agricultural University in Guangzhou showed that there is a great disparity in the mechaniza on level among Asian countries.

The study showed that in countries where farm mechaniza on level is high, the “agricultural labor intensity” is conversely low.

Agricultural labor intensity indicates the number of workers in a hectare of farmland.

South Korea, which has been self‐sufficient in rice and exports various farm products, has an agricultural labor intensity figure of 1.11.

While no figure for agricultural labor intensity was given for the Philippines, the figure for Bangladesh, which is also in the developing stages of farm mechaniza on, was 4.69.

While a reduc on in the number of laborers can happen once farm mechaniza on level increases, the workers at the fields usually benefit from improved condi ons.

“Agricultural mechaniza on plays an increasingly important role in agricultural produc on in the Asia‐Pacific region. It reduces drudgery, increases the safety and comfort of the working environment; it enhances produc vity, cropping intensity and p ro d u c o n . I t i n c r e a s e s i n c o m e fo r agricultural workers and then improves social equality and overall living standards,” the study said.

Sustainable Agricultural Mechaniza on ‐ a beneficial, yet neglected element in agendas Agricultural Mechaniza on is thus well placed to address many of the most fundamental farming challenges in developing countries in a profound and comprehensive manner.

Provided that suitable technology solu ons are employed, Agricultural Mechaniza on “removes the drudgery associated with agricultural labor, overcomes me and labor

bo lenecks to perform tasks within op mum me windows and can influence the environmental footprint of agriculture leading to sustainable outcomes.”

In light of the persistently low mechaniza on levels in many developing countries and the tremendous progress and benefits that can be achieved with the help of Agricultural Mechaniza on there is widespread consensus that interna onal actors and governments should “con nue to encourage farmers to use agricultural machinery through development programs and through the provision of incen ves.”

However, the current levels of commitment and encouragement by interna onal actors and g o v e r n m e n t s t o p ro m o t e a g r i c u l t u ra l mechaniza on in developing countries are compara vely low. In fact, notwithstanding its fundamental importance and poten ally beneficial role, Agricultural Mechaniza on, in the words of the FAO, is “the neglected waif” of agricultural and rural development in developing countries.

Mechaniza on remains a somewhat neglected element of agricultural and rural development polices in developing countries, par cularly in Africa. In line with this, only limited progress in agricultural mechaniza on has been achieved in terms of increased number of machines and market expansion in Africa in the past years.

Nonetheless, the predic ons for the next years are structurally posi ve.

Keeping in view the above facts we conclude that farm mechaniza on increases the agriculture produc vity. It increases the income, saving and investment of the farmers. In the other word we can say that farm mechaniza on is very useful for the development of agriculture sector.

12

Mechaniza on in Ghana: Emerging demand, and the search for alterna ve supply models Agricultural mechaniza on represents technology change through the adop on of non‐human sources of power to u n d e r ta ke Xinshen Diao Development Strategy and Governance Division International food Policy Research Institute, Washington DC, USA

agricultural opera ons such as plowing, har ves ng , shelling , and plan ng.

Adop on of mechaniza on by farmers is an evolu onary process influenced or induced by a set of country specific agro‐ clima c factors, economic factors and social condi ons for which the government’s policy choices have impact.

Because of this, the literature on mechaniza on in Africa that is dated to the 1970s and 1980s focuses on evalua ng governments’ early interven ons in mechaniza on services. The consensus was that the early push in mechaniza on failed in Africa due to lack of economic demand from farmers and the fiscal burden of state‐sponsored programs.

However, with the recent emphasis on agricultural development and public

investment in the sector, some African countries have started to devote public resources to promote agricultural mechaniza on, including through direct subsidiza on of machinery imports. We find that demand for certain mechanized farming opera ons par cularly plowing has emerged even among smallholders.

The development of the mechanized service hiring market in which medium and large scale farmers who are tractor owners provide hiring‐out services to s m a l l ‐ s ca l e fa r m e rs re p re s e nt s a p ro m i s i n g m o d e l fo r s u sta i n a b l e mechaniza on.

On the other hand, the specialized service provision model recently promoted by the government seems to be not viable.

Con nuous implementa on of such model will not only increase the financial burden to the government, but also encourage more rent‐seeking behaviors, a nega ve factor to hurt the private sector as the leader in developing mechaniza on supply chain.

Ghana has experienced steady economic growth since the late 1980s, and the g ro w t h i s a c c o m p a n i e d b y ra p i d u r b a n i z a o n a n d r i s i n g n o n fa r m opportuni es in the rural areas. During this period, the government of Ghana has adopted a market‐driven agenda in which

its policies and investments have been remarkably neutral with respect to the produc on sectors. Apart from cocoa, the ‘‘winner‐picking’’ type of government interven on is rarely adopted in the agricultural sector. However, beginning in 2 0 0 3 , t h e G ove r n m e nt sta r te d to reemphasize the importance of mechaniza on, directly engaged in tractor imports, and established subsidized agricultural mechaniza on service centers in the last a few years. Several African co u nt r i e s a re co n s i d e r i n g s i m i l a r mechaniza on policies. In Nigeria, for example, the government is the primary importer of tractors, which were sold at subsidized prices to farmers. Similarly, the Government of Tanzania has sold more than 5000 sets of imported agricultural machinery at subsidized prices. The government of Mali imports tractors from India, DRC imports tractor and farm equipment and Cameroon planned to import tractors from India, all at the subsidized prices. Many of these imports and associated policies are facilitated by lines of credit from the emerging economies such as Brazil, China and India.

The records of the Export‐Import Bank of India show that Angola, Benin, Burkina Faso, Burundi, Chad, Guinea Bissau and Swaziland have received similar lines of

13

credit ranging from $4 million to $110 million from India to purchase agricultural machinery. While exports through these c re d i t a r ra n ge m e nt s w i t h A f r i ca n countries’ governments are encouraging these countries to increase agricultural machinery imports, it is a ques on whether it also presents poten al challenges for these countries to be able to establish a private sector led sustainable supply chain for agricultural mechaniza on.

Against this background in the recent development of mechaniza on policy among African countries, we employ a methodology that is a combina on of qualita ve interviews, secondary data analysis and literature review for a diagnos c analysis of demand for and supply of agricultural mechaniza on. We focus on Ghana and have interviewed farmers, tractor owners, government officials, importers and other stakeholders there. The hypotheses emerging from the field work were tested and refined by analyzing both aggregate and household survey data. A number of small‐scale surveys or field studies conducted by IFPRI’s Ghana Strategy Support Program, including a farm budget survey, a study of animal trac on use, a survey of input use for maize and rice produc on, a survey of government‐supported mechaniza on service centers and a study of cropping prac ces and labor requirements for farm opera ons. Part of the data from a recent survey of tractor owners and medium and large scale farmers jointly conducted by IFPRI and Ghana’s Savannah Agricultural Research Ins tute (SARI) in October – December 2013 is also used.

T h e c ro s s ‐ c o u n t r y c o m p a r i s o n o f agricultural mechaniza on experiences was developed through an extensive literature review. Very li le research has examined the supply side factors of mechaniza on and those have usually focused on provision of services alone rather than the en re supply chain with service provision at the end.

Agriculture since 1980s: Is demand for mechaniza on emerging in Ghana?

Since the early 1970s, all over the developing world, power intensive opera ons of land prepara on, threshing, pumping and transport have been largely motorized via tractors and sta onary m a c h i n e s . H o w e v e r, A f r i c a i s a n excep on.

The early push of tractoriza on by African governments and some donors largely failed, and animal trac on was also processing very slowly in many countries.

Applying the Boserup–Ruthenberg model, have provided a formal analysis on the main reasons for the slow progress of agricultural mechaniza on in Africa. By examining the exis ng farming systems in Africa carefully, the authors argue that the slow transi on from hand hoe to mechanized plow can be explained by lack of the evolu on in farming systems. Only when the systems move from long fallow to short fallow or permanent agriculture does plowing become necessary to deal with grassy weeds and hardening soils which are difficult to remove with the hand hoe. Understanding such evolu on is the first necessary step for be er assessing possible changing situa on of demand for mechaniza on in Africa in the recent years. In the following subsec on we first inves gate a measure of farming systems, commonly used by Boserup and Ruthenberg, for Ghana in the last five decades.

Long term drivers of agricultural evolu on T h e f u n d a m e nta l co nt r i b u o n o f

Boserup–Ruthenberg theory in farming system evolu on is to interpret agricultural technological changes and prac ces as endogenous rather than exogenous to the economic system, that is, such endogenous progress is influenced by agro‐ecological condi ons and induced by changing characteris cs of the socio‐ economic environment with which the farmers are confronted. According to Boserup and Ruthenberg, and further formalized and tested, Binswanger and McIn re (1987) and McIn re et al. (1992), the main driving force of the evolu on of the farming systems towards higher intensifica on are popula on density and market access. To assess such evolu on of farming systems in a stylized way, the R‐ value, which is used both by Boserup and Ruthenberg in slightly modified form, is used as an indicator to measure the intensity of the farming system. In Ruthenberg (1980), R‐value takes account of both cul vated and fallowed land, as well as the number of cropping seasons per year. According to Ruthenberg, animal trac on appears only at the short fallow stage when R‐values rise to above 33% (i.e., the average fallow period is shortened to less than two years for each year of cul va on). Animal trac on started to be used when some stumps remain in the fields under the short fallow system, but for tractor to be able to operate for land prepara on, stumps have to be completely removed, meaning that it may appear later in the agricultural intensifica on sequence.

This stylized measure of land use intensity is used here to assess farming system evolu on in Ghana. The R‐values for Ghana are calculated using the Food and Agriculture Organiza on’s data on harvested area and available agricultural land, which is the sum of arable land and permanent meadows and pastures.Ghana is known as a rela vely land abundant country in Africa, which is captured by a low R‐value in most years un l the late 1990s.

14

This is consistent with the argument, i.e., the farming systems characterized by the low R‐values for Ghana indicate that at this stage farmers in general did not have enough demand for plowing nor tractorized land prepara on.

While the Boserup–Ruthenberg model and the R‐values calculated based on this model emphasize the endogenous change in farming systems in responding to the changes in economic and social condi ons, if the evolu on is only characterized by land use intensity, agriculture has yet to transform from a natural resource‐based to a science‐based system. Thus, most agricultural economists refer to this type of evolu on through land use intensity as agricultural extensifica on instead of intensifica on. Obviously, land use intensity measured by increased R‐values is only a necessary but not sufficient condi on for assessing the demand for mechaniza on. Once African farmers have moved beyond the long fallow farming system, the economic decisions at farmer‐ level for technology adop on, including mechaniza on, become more diverse and are influenced by many factors beyond popula on density and agro‐ecological condi ons.

Opportunity costs for agricultural produc on The easiest way to show the impact of urbaniza on on rural wage rate is to display trends for changing urban and rural real wage rate over me. Unfortunately, such data does not exist in Ghana as the country has never systema cally collected both labor and wage data. With such data constraint, we apply micro level data to i n d i re c t l y m e a s u re t h e i m p a c t o f urbaniza on on agricultural labor cost. The first indicator is a measure of rural households’ nonfarm employment opportuni es, which would lead to increased opportunity cost for agricultural labor.

In 2005‐06 there were about 40–45% of total households residing in the rural areas, of which more than one‐third with at least one family member primarily

engaging in nonfarm ac vi es. The share is lower than the na onal average in the north and in the regions with higher land‐ labor ra o and is higher in Greater Accra and other regions in the south. Among such rural households almost 60% of working family members primarily worked in the nonfarm sector and the share can be as high as 74% in Western region. The number of agricultural workers per household, for the rural households with at least one family member primarily engaged in non‐ agriculture, is much smaller than that for the other group of rural households without such nonfarm opportunity.

Obviously, labor opportunity costs for rural households already engaging in nonagricultural ac vi es are much higher than those without such engagements.

Thus, labor‐saving technology, especially the technology subs tutable for power intensive ac vi es and ac vi es that can become bo leneck for farming is expected to be a rac ve to rural households with nonagricultural ac vi es as part of family employment por olio.

Agricultural mechaniza on: alterna ve supply models Demand for mechaniza on does not always lead to an adequate supply response, par cularly when such demand comes from small‐scale farmers. While many small‐scale farmers in Ghana are ready to pay for hired services at the market price, they are s ll unlikely to pay the prices for full ownership of tractors.

Purchasing a tractor is an investment decision, and returns to it are unlikely to cover the cost of the investment for many

small farmers, i.e., for small‐scale farmers, it is not just an issue of lack of financial support. Governments in Africa, including Ghana, o en use this as an argument to jus fy a subsidized mechaniza on program. However, there is a risk that a subsidized program can restrain the machinery supply from the private sector, w h i c h m a ke s t h e p ro g ra m o e n unsustainable. Indeed, the literature provides overwhelming evidence that public sector‐led early efforts in Asia and Africa in the 1970s and 1980s failed to facilitate sustained adop on of mechaniza on. Reviewing 38 public mechaniza on programs in 21 countries across Asia and Africa, only 2 programs were deemed to have been successful and they were for land rehabilita on and leveling using bulldozers, rather than provision of tractor services. Under most programs, the service charges were o en set to cover only the opera ng costs, undercu ng private providers and resul ng in weak capacity along the supply chain.

Unfeasible opera onal model for AMSECs The AMSEC scheme was designed to establish specialized ser vices in mechaniza on without considera on of whether it is profitable. In Ghana, the AMSECs are mainly to provide plowing services locally and demand for other mechanized opera ons is yet to develop. It is not surprising that many AMSECs are unable to follow the repayment schedule, and some have been allowed to default on repayment, leaving the government responsible for the repayment of concessional loans.

16

Look under the bonnet of a Kubota and you will find something very special.

Three words that convey trust, quality and engineering excellence, Mode in Don’t compromise. For your own peace of mind, insist on 100% Kubota.

Contact your local Kubota dealership or contact on +91 9940337618 | Email: madalasagar.s@kubota.com

For Earth, For Life www.kubota.com

In Gh an a, like Ch in a, th ere are opportuni es to increase u liza on by migra on across regions. South Ghana has two cropping seasons and the north has one, which, in theory, can lead the increase in the number of opera onal days through migra on and hence makes it possible for tractor investment profitable. However, experience from China shows that the risk from the coordina on failure is high for individual entrepreneurs in migra on when farmers are small. In prac ce, there is li le evidence of AMSECs doing it (although there evidence of this prac ce by private tractor owners).

induced technology adop on. Ghana’s fa r m i n g sy s t e m s h av e u n d e rg o n e significant changes in the last 30 years.

Land expansion in responding to increased market demand for agricultural products has led to rising land‐labor ra o and increased numbers of medium‐ and large‐ scale farmers. In combina on with the rising wage rate and increased opportuni es for rural workers in nonfarm sectors, it has induced the demand for labor‐saving technology and demand for certain mechanized farming opera ons, par cularly plowing, has emerged even among small‐scale farmers.Most tractors imported by the private sector are secondhand at much lower prices than Conclusions e examine the demand for mechaniza on the new ones, indica ng the price of agricultural opera ons in the context of sensi vity for tractor buyers, while such the evolu on of farming systems and lumpy investments have yet to receive

any financial support from either the government or private financial sector.

India’s experience shows that through government support to financial ins tu ons, domes c banks (par cularly development banks) can provide longer‐ term lending to enable the private sector to invest in agricultural development, including in mechaniza on. Policies and interven ons to assist the private sector in overcoming market failures in credit markets have been documented for other Asian countries too. Will Ghana’s government be able to indirectly promote mechaniza on through the engagement of the financial sector instead of establishing AMSECs? This is a policy op on that deserves more research.

18

China Agricultural Equipment Market An Overview C h i n a h a s t h e l a rg e st m a r ke t fo r agricultural machinery in the world. The industry had a total produc on value of $38.4 billion as of 2012. Agricultural machinery favors a much higher growth rate than other sectors of the machinery industry. Among the 12 sub‐agricultural sectors, feed machinery, stockbreeding machinery, and agricultural machinery components fare the best and maintain strong long‐term growth prospects.

An ongoing trend is the increasing ra o of overseas enterprises becoming more integrated into the Chinese market. Thus far, there are 147 interna onal agricultural machinery companies in China, which makes up 8% of all agricultural machinery companies in China. These interna onal businesses opera ng in China create 12.06% of the total produc on and contribute to 55% of the agricultural machinery exports from China.

A g r i c u l t u ra l m a c h i n e r y s u bs i d i e s , workforce reduc on, and the improvement of farmers’ purchasing power are the main driving forces behind the rapid development of China’s agricultural machinery industry. Since the Chinese government first implemented subsidy policies in 2004, the scope of subsidies has grown to include 12 categories and more than 175 types of a g r i c u l t u r a l m a c h i n e r y. I n 2 0 1 2 , government‐designated subsidies for purchasing agricultural machinery reached $3.5 billion (52 mes the amount in 2004).

During the past nine years, the Chinese central government dedicated approximately $12 billion for agricultural

machinery subsidies, contribu ng to the overall demand for agricultural machinery of $51 billion at a 1 to 4.2 ra o.

There is a clear disparity between China’s agricultural machinery manufacturing technologies and those of developed na ons, par cularly in the area of intelligent control. For the past several years, China’s agricultural manufacturing industry has relied largely on the produc on of small‐scale, low‐end to mid‐ range machinery. Mass‐produc on machineries concentrate their opera ons on small‐power tractors, combines, and other small‐to‐medium‐sized machines.

machines, and dairy machines. Provincial and local governments decide on which equipment they want to subsidize. There are no subsidies for imported products.

Market Demand Domes c agricultural machinery produc on and sales maintained strong growth, but not for all sectors. Sales of soil llage machinery, grain combines, rice transplan ng and corn har ves ng machinery were 1,578,000 units, 222,000 units, 97,000 units, and 52,000 units respec vely in 2012.

In 2012, for agricultural machinery industry sales, Shandong Province ranked first with a 22% share; Henan Unit: USD Millions Province ranked second with 19%; Jiangsu Province ranked third with 10%; and Zhejiang Province ranked fo u r t h w i t h 6 % . L a r g e ‐ s c a l e enterprises (with sales revenue of at Data Source: China Customs, Zeefer Consul ng least $3.2 million) produced the majority of China’s agricultural Opportuni es machinery in these four provinces alone.

According to the China Agricultural Market Entry Machinery Distribu on Associa on There are no specific market‐access (CAMDA), the agricultural machinery restric ons. However, subsidy policies do i n d u st r y ’s to p fi ve m a n u fa c t u re rs pose a challenge to U.S. exporters. The comprised only 24.8% of the industry compe on between local Chinese market shares in 2011. suppliers of low‐end and mid‐range equipment is fierce. This leaves the high‐ Market Obstacles end technology/equipment market as a U.S. companies should establish a clear prac cal target for U.S. manufacturers. strategy to handle the challenges of In 2005, the Chinese government began to protec ng their IPR in a complex, legal subsidize agriculture machinery for e n v i r o n m e n t . M o r e s p e c i fi c a l l y, farmers. The government does not companies should learn how to conduct subsidize all equipment; only what it their business transac ons to minimize determines to be eligible for “government risks of intellectual property the in the promo on.” Eligible categories include: most economical and cost effec ve way. tractors, harves ng machines, planters, land prepara on machines, crop care

20

vf/kd bVkfy;u gj fdlku dk liuk jksVksosVj gks viuk "A Dream of xksfcUn Every Farmer" CysM ds lkFk varjk"Vªh; ekudksa ds vuqlkj fufeZr

jksVksosVj 

jks

Vk

so

sV

j

OIL FILLED

GEAR DRIVE

WARNING

!

de LOW [kir CONSUMPTION vf/kd tqrkbZ MORE PLOWING



before Check oil level tighten using machine all bolts everyday

Approved by

by Government Government of of India India Approved

Mcy fLizxa 

ADVANTAGE:

Qk;ns % Gobind Rotavator is better than other agricultural equipments to prepare the soil in just one or  twoxksfcUn jksVksosVj vU; ;a=ksa times of cultivation, and also it save the 40%d`f"k diesel and 60% time. dh rqyuk esa  Traditional method takes minimum esa 10-15 t+ehu days to prepare bed where Gobind ,d ;k nks gh tqrkbZ dksseed cksus dsasfy,by rS;kj Rotavator soil is immediately available for sowing. dj nsrk gSA ftlls yxHkx 40ø Mhty dh cpr vkSj 60ø  Gobind Rotavator can immediately prepare the soil moisture of previous crop does not go waste, management. le;thus dhhelps cprwater gksrh gSA  Cultivation of soil can be done immediately after the rain because it is the ideal use for  Rotavator, ikjEifjd rjhdksa ls [ksr dks cqvkbZ ds fy, rS;kj djus it also push the tractor forward in soil. esaRotavator yxHkx 10 ls 15 le; yxrk gSbananas, ijUrqjute, xksfcUn  Gobind is beneficial for thefnu land dk of reaped sugarcane, dried grass and other corps. jksVksosVj ls [ksr cqvkbZ ds fy, rqjUr rS;kj gks tkrk SALIENT FEATURES: gSA  Gear Box: Heavy duty export quality gear box, and it have longer service life.  Box Frame: It have heavy duty square pipe feV~Vh and made up from heavycqvkbZ plates. xksfcUn jksVksosVj dks ds fy,  Trailing Board: It havedj automatic spring which helps in to have a quality cultivation of soil,dh and rqjUr rS;kj nsrk gS] ftlls fiNyh Qly dh feV~Vh its pressure balance the wet soil . ueh csdkj ugha tkrh] bl guard. izdkj ty izcU/ku esa enn  P.T.O. Shaft:Water proof cross with protection  It have double spring multi lip oil seal.

Hkh djrk gSA  Tiller Blades : Blades made up from advanced imported parts which easily cultivate the soil  without vU;heavy d`f"k ;a=ksa rqyuk esa cjlkr gksus ds ckn load and also helpsdh in smooth running.  Side Transmission: gears made out oftk best qualitygSA steel & properly treated technology rqjUr bllsSide tqrkbZ fd;k ldrk xhyhheat feV~Vh esa which gives the regular functioning with longer life. tqrkbZ bldk vkn'kZ mi;ksx gS] lkFk gh ,lh voLFkk 

rduhdh fo'ks"krk,a % TECHNICAL SPECIFICATION GI -- 120 120 GI

Tractor Tractor Power Power Overall Overall Width Width

Tillage Tillage Width Width Gear Box Box Speed Speed Gear

Side Transmission Transmission Side P.T.O. Speed Speed (RPM) (RPM) P.T.O. Rotor Rotor Speed Speed (RPM) (RPM) No. No. of of Blades Blades

Gear Gear Box Box Overload Protection Overload Protection

GI -- 150 150 GI

GI -- 175 175 GI

GI -- 200 200 GI

GI -- 225 225 GI

30 30 to to 35 35 H.P. H.P. 35 35 to to 45 45 H.P. H.P. 45 45 to to 55 55 H.P. H.P. 55 55 to to 70 70 H.P. H.P. 70 70 to to 75 75 H.P. H.P. 150 180 205 230 255 150 cm cm 180 cm cm 205 cm cm 230 cm cm 255 cm cm 120 cm 150 cm 175 cm 200 cm 225 cm 120 cm 150 cm 175 cm 200 cm 225 cm Single/Multi Single/Multi Single/Multi Single/Multi Single/Multi Single/Multi Multi Single/Multi Single/Multi Multi Gear Gear Gear Gear Gear Gear Gear Gear Gear Gear 540/1000 540/1000 540/1000 540/1000 540/1000 540/1000 540/1000 540/1000 540/1000 540/1000 220 220 36 36

220 220 42 42

Shear Shear Bolt Bolt

Shear Shear Bolt Bolt

220 220 48 48

Shear Shear Bolt Bolt

220 220 54 54

Shear Shear Bolt Bolt

220 220 60 60

Shear Shear Bolt Bolt

The content content of of this this catalogue catalogue is is only only giving giving information information to to the the end end user user without without engagement engagement from from our our side. side.

The The The Company Company can can modify modify the the specifications specifications of of the the total total machine machine & & its its components components without without notice. notice.

Rotor Speed (RPM) for Multi Speed Gearbox Rotor Speed (RPM) for Multi Speed Gearbox 1000 (RPM) Tractor PTO 540 (RPM) 1000 (RPM)

Tractor PTO 540 (RPM)

15 20 1516020

16 19 16 18019

17 18 17 20018

18 17 18 22517

19 16 19 25216

20 15 20 28215

160

180

200

225

252

282

13 22 13 232 22 232

xUuk Sugarcane

n kgjk ckx+] gSnjx<+ jksM

Gobind Industries a ¼;w0 ih0½ ckjkcdh

( A Unit of Gobind Alloys Limited )

( A Unit GobindCompany Alloys Limited ) An ISO of 9001:2008 An +91-7705900901, ISO 9001 : 2008 Company 903, 904, 906, 923 9415049542,Haidergarh 941504862,Road, 9415049543 Dasharabagh, Barabanki (U.P.)

GOBIND

info@gobindindustries.co.in info@gobindindustries.co.in

gobindindustries.co.in gobindindustries.co.in

dikl Cotton

dsyk Banana

dkuZ LVkDl lw[kh&xhyh t+ehu Corn Stalks

Wet & Dry Field

vf/kd` r foØsrk % vf/kd` rFor foØsrDealership k% and Distributorship Enquiry : Lalit Sachedva +91 9643040547 sachdeva.lalit2015@gmail.com

Chinese companies targeting the Africa agricultural market Land use efficiency is not high, the lack of l a b o r, l o w l e v e l o f a g r i c u l t u r a l mechaniza on caused food crisis.

Currently, African countries vigorously promote the development of agricultural mechaniza on, opportuni es for Chinese enterprises.

Agriculture occupies an important posi on in African economies in sub‐Saharan African countries to GDP ra o up to 33% with an average contribu on of agriculture. At the same me, water resources, rich Africa, species‐rich, fer le land, is very conducive to agricultural produc on. However, due to the food crisis in Africa is the primary government.

Inefficient use of land, labor shortage in produc on, low level of agricultural mechaniza on is the main problem.

According to the sta s cs agency, such as the World Bank, the world has not opened a total land area of wasteland 60% are concentrated in Africa, the poten al of agriculture‐related jobs and hundreds of millions of dollars. Meanwhile, the land has been reclaimed tractor Africa was only 10%, irrigated land accounts for only 4%.

In terms of agricultural mechaniza on, a l t h o u g h m a ny A f r i c a n c o u n t r i e s vigorously promote the development of agricultural mechaniza on, agricultural produc on in some countries also established plants, but only a few countries can assemble tractors, tractor market in most countries has mainly relied on imports. Analysts pointed out that less machinery and equipment manufacturing i n d u st r y i s a n i s s u e o f e c o n o m i c development in Africa, but also to final product manufacturing capabili es includes an opportunity for China's developing country in the world.

"Into Africa" intensive In recent years, the main supplier of agricultural machinery in China has been more and more a en on and

commitment to the African market, the construc on machinery industry, has become a public water point, the meat and potatoes of Africa, Liao on this huge, beau ful land, contains unlimited business opportuni es and money.

As the birthplace of China's first tractor, the first round and the first military off‐ road vehicles, China First Tractor Group into the "non‐heavy industry African market in 1992, in August 2009, a trailer and the African Development Fund, jointly organized by China Investments Limited. " In the non‐heavy industrial establishment, the original pure import and export trade, as a "first industry investment follow‐up" mode of opera on. Investment and trade of agricultural machinery and construc on machinery in Africa as the core, has been established in Algeria, Egypt, Ethiopia, Nigeria, Kenya, Angola and South Africa assembly plants and service centers in seven African countries, In addi on to China First Tractor, Foton Lovol also in the Middle East, Africa market posi oning as a strategic market, Chery Heavy Industries started "into Africa" strategy, plans to build the $ 260 million investment in Africa, seven countries of the three modern agricultural machinery operators center. They believe that "package" to provide customers with complete solu ons, African agriculture.

Since many African countries would be European colonies and the development of the na onal agricultural markets is heavily dependent on government investment and interna onal economic aid. In this historical background and ge o g ra p h i ca l a d va nta ge s , A f r i ca n agricultural products imported from several major developed markets UK, France, Germany, Italy and United States.

But since the 1990s, China's agricultural products gradually enter the market and Africa, sales increased steadily.

Into the African market, Chinese

enterprises to ac vely agriculture according to local condi ons, to provide agricultural equipment product por olio "localiza on", improved products to meet the needs of the African market. Most of the land in Africa in sight of students, it is full of "deep‐rooted" trees and shrubs, must increase efforts to avoid damage to the plow. Equipment for a tractor to the blade disc plow, can easily mowing tractor does not affect performance.

Drag the original produc on of small mesh mill, processing cassava bad taste.

Therefore, the product of rapid improvements, increasing the screen, the par cle size of the spread of cassava rights, mill sales suddenly opened.

Wuzheng Group in Ghana received the order, established the "African exports car" project team, responsible for the en re order, sample design, verifica on, program produc on, packaging and a series of work.

Technical staff is the engine, cab, chassis and body details and Ghana to send technical personnel to communicate with each other, according to the requirements of the product has been improved, and individually designed.

Given the short‐term products and the lack of effec ve demand situa on, while implementa on of the "difference" of the marke ng strategy, Chery Heavy Industries in the sale of small tractors, plan ng and harves ng machinery markets in Africa "General" products, according to the local farming high African market requirements in order to promote regional, high horsepower tractors and agricultural high bridge type tractors, as well as exis ng products, the introduc on of specially adapted for local agricultural produc on.

"Adap ve innova on" agricultural sta n d a rd ized s er vices to o p mize customer service.

24

+91 9317750109 | agro1@swanindia.com | www.swanindia.com

Myth-busting for African agriculture If you know anything about A f r i c a n agriculture, many commonly held beliefs about the sector will easily spring to mind.

Most farmers are women. Uptake of fertilizer and Emily Alpert Deputy Director at Agriculture for Impact United Kingdom

improved seed is low. Post‐harvest losses are huge.

Yet according to a new project “Agriculture in Africa – Telling Facts from Myths,” the evidence upon which we base our decisions and views about agriculture and farming systems in sub‐Saharan Africa is often inadequate or out of date.

The project seeks to tell facts from myths about African agriculture using the Living Standards Measurement Study ‐ Integrated Surveys on Agriculture, or LSMS‐ISA, a household survey project working to collect up to date agricultural data. It tests the validity of 15 commonly believed statements; statements that, although commonly accepted, may no longer be valid given Africa’s rapid economic growth and the new era of high food prices, amongst other driving forces of change. To date, surveys have been conducted in six countries — Ethiopia, Malawi, Niger, Nigeria, Tanzania and Uganda — representing 40 percent of the population in sub‐Saharan Africa.

We took a look at the preliminary findings to see where many of us may have been going wrong…or right. Here are some new facts about African agriculture that you may not know.

Enhancing Africa’s Soils.” If we are to make interventions for improved but targeted use of fertilizer in Africa, it is essential to have more up‐to‐date information on which to base our recommendations.

FACT #1: Inorganic fertilizer in Africa is being used on staple crops, not only export crops.

Fertilizer use is claimed to be dismally low in sub‐Saharan Africa and poor soil health is a serious challenge across the continent.

However, the six countries examined are making progress to increasing fertilizer use, and not only on so‐called “cash c ro p s .” I n fa c t , a c co rd i n g to t h e preliminary findings of this project, inorganic fertilizer use is as high on maize dominated plots destined for export as on farm plots used for sustenance. For example, Malawi uses 135 kilogram per hectare on maize farms compared to the 146 kg/ha household average and Nigeria uses 123 kg/ha compared to 128 kg/ha, respectively.

FACT #2: Uptake of improved seed varieties is already high, but mechanisation and irrigation is low.

According to the project findings, Ethiopia is showing the lowest uptake of improved seed, with 26 percent and Malawi is showing the most progress with 56 percent uptake in the households surveyed. Given the difficulties in fully capturing data for improved seed use, these are likely underestimates. However, a limited use of mechanization and irrigation was found to still be true, with an average of 5 percent of the households surveyed for the LSMS‐ISA showing some sign of irrigation, with only 2 percent of the cultivated land under irrigation by smallholders.

The findings show that there is still a need to invest in the distribution and adoption of improved seeds, alongside improvements in irrigation in machinery.

Whilst under certain circumstances, irrigation can help to raise yields by 50 percent, investing in farm machinery has benefits both on and off the farm. Farm machinery can boost yields, reduce the time it takes to harvest crops, add value to farm products with the development of manufacturing capacity and generate employment opportunities for machine o p e ra t o rs , re p a i rs a n d s e r v i c i n g .

Strengthening entrepreneurship in African agriculture should still be a high priority.

We often hear that women are responsible for 60-80 percent of the agricultural labor supplied on the continent of Africa. This initially seems shocking until you consider the data was sourced in the 1970s.

The issue of soil health in Africa has been under much scrutiny in recent weeks, with the launch of the International Year of Soil, as declared by the Food and Agriculture Organization and the publication of the Montpellier Panel’s report “No Ordinary Matter: Conserving, Restoring and

26

FACT #3: Men take on more f a r m i n g responsibili es than previously thought.

We o en hear that women are responsible for 60‐80 percent o f t h e agricultural Stephanie Brittain Project and Communications labor supplied Officer at Agriculture for Impact o n t h e United Kingdom con nent of Africa. This ini ally seems shocking un l you consider the data was sourced in the 1970s.

In fact, results from the household surveys found that women make up between 24 percent of the labor force in Niger and up to 56 percent in Uganda, or 40 percent on average across the six countries — considerably less than the previous es mate. The results show more male involvement in non‐edible crops, except in southern Nigeria, where female involvement reaches 61 percent. The study also found that women are rela vely more involved in harves ng and less so in land prepara on in the countries in which men have the higher share of agricultural labor.

Findings showed that on average, the produc on gap between male and female managed plots is 25 percent. Furthermore, closing the gender gap in agriculture would only raise agricultural produc vity by 6.3 percent (at most 25 percent of plots are managed by women). Using this informa on to help inform public policy debates and funding alloca ons, let’s consider the need to double yields by 2050 to meet the demand of growing popula ons. If total agricultural supply is the only objec ve, then this research suggests that closing the gender gap alone won’t get us there.

However, if the objec ve is food and social security, gender equality, land rights and improved child nutri on, to name a few, then focusing on women has been

repeatedly found to be vital and there is therefore a serious and ongoing need to engage and work with female farmers, focusing strongly on female empowerment.

PRABHAT FERTILIZER & CHEMICAL WORKS

Manufacturers of: Do new truths lead to new myths?

Without current and accurate data, we — the research and policy community — run the risk of throwing limited financial and human resources at interven ons that are either no longer relevant or possibly designed to fail. There is also the risk, however, that new “truths” could lead to new “myths.” Keeping in mind that the findings so far only cover six countries, the playbook should not be en rely rewri en, yet. Maybe it should be revised for the six countries already examined.

Bio-fertilizers Micronutrients Organic Fertilizer Bio-control Agents Organic Plant Growth Promoters

However, to avoid running the risk of crea ng new myths, first and foremost, we should stop generalizing about Africa.

It is a con nent, not a country and it requires a differen ated narra ve. With 56 countries and a mul tude of cultures, a tudes, religions and languages, agricultural development planning in Africa needs to embrace, not shy away from, these differences.

Growing interest from governments, the private sector and donors over the last decade mean that billions of dollars are again being invested in African agriculture. The LSMS‐ISA offers new, robust data that are open access and can establish baselines using a bo om‐up approach. Genera ng more reliable evidence will enable policy‐makers to make be er decisions going forward.

Truth be told, hopefully we are now at the beginning of building a new story, a more complex and differen ated one than we have now.

Prabhat Fertilizer & Chemical Works Village Kurali, Indri Road, KARNAL +91 184 2389444, 2389666 info@prabhatagri.com www.prabhatfertilizer.com

27

NEWS UPDATES Bankers in Punjab (India) be ng big on farm mechaniza on sector

Aggregate credit poten al for farm mechaniza on has been assessed at INR 2892 crore for 2015‐16 Popularity of farm equipment, such as laser leveler, paddy transplanter and harvester, among farmers of Punjab has opened a plethora of opportuni es for bankers. With the increasing need for precision implements and machinery other than tractor, there is an immense poten al for enhanced credit flow in the sector.

The aggregate credit poten al for farm mechaniza on has been assessed at INR 2,892 crore for the state for 2015‐16, according to state focus paper prepared by the Na onal Bank for Agriculture and Rural Development.

E a r l i e r, i n t h e s t a t e , t h e f a r m mechaniza on has been effec vely a ‘tractoriza on’ process. The state has one tractor for every nine hectares of net‐ cul vated land, against the na onal average of 62 hectares, with 18 per cent of the tractors used in the country.

Though mechaniza on in agriculture has grown steadily during the past three decades, the sector faces problems due to declining average size of land holding and sca ered farms, which restrict the scope for large scale farm mechaniza on.

With twice the number of tractors required, the sector is experiencing a situa on of over capitaliza on and under‐ u liza on of farm machinery.

However, the introduc on and use of other farm equipment, such as power llers,

tractor drawn implements, reapers, threshers, cleaners/graders, zero‐ ll seed‐cum‐fer lizer drill, raised bed planters, reapers and rotavators, have also increased significantly over the past few years, making it an a rac ve sector for the banks. The emerging areas that need a en on include mechaniza on of labor‐ i n t e n s i v e o p e r a o n s l i ke p a d d y transplanter, co on picking, sugarcane harves ng, and introduc on of crop residue management and propaga on of water conserva on technologies through the use of suitable equipment.

The present focus of farm mechaniza on in the state is resource conserva on technologies (RCT) through the use of laser land levelers, zero ll dra and happy seeders. With the increasing need for use of precision implements and machinery other than tractor, there is an immense poten al for enhanced credit flow under the sector.

According to experts, in Punjab, the high wage rates and non‐availability of farm labor necessitate promo on of farm mechaniza on, as mechanized farming reduces costs and drudgery, ensures meliness of opera ons and augments efficiency and profitability of agriculture.

compared to 34.04 mt in 2012‐13.

However, some states expect rises. An official in the agriculture department in Bhopal said Madhya Pradesh (MP) was set to post a significant rise due to more plan ng and the Rs 150 a quintal bonus by the state government above the Centre's minimum support price. MP might procure 1.6 mt compared to 1.3 mt a year ago.

Bihar expects to get more. And, 2012‐13 was a drought year for Tamil Nadu when 400,000 tonnes were procured; this year's expecta on is 1.5 mt.

As the fourth advanced es mates of the ministry of agriculture are yet to come, procurement agencies are relying on the ini al es mates from the food secretary in the preparatory mee ng on winter crops.

Sources in the Food Corpora on of India said actual procurement might surpass the es mates.

D A fa r m m e c h a n i za o n to b o o st Philippine farming

Rice procurement may dip in cyclone‐hit states

Some, including Tamil Nadu and Madhya Pradesh, set to post an increase The unprecedented rain and three cyclones that hit the coastal eastern belt in November and December might take a toll on paddy procurement in those parts in 2014‐15.

The procurement was projected to touch 35 million tons due to a good monsoon

BUTUAN CITY, With the inten on of boos ng rice produc on in the Philippines through developing its agricultural technology, the Department of Agriculture (DA) partners with the Philippine Center for Post‐harvest Development and Mechaniza on (PhilMech).

PhilMech has launched its research program called Agrinova on and has produced innova ons such as Rice Transplanter, Compact Corn Mill, Cassava Digger, and many more.

“With Agrinova on, we are addressing the country ’s agricultural problems by maximizing what is already there,” said PhilMech Applied Communica on chief and Science Research Specialist Rodolfo P. Es goy during his visit in Butuan City.

30

The latest survey undertaken by PhilMech showed a significant development and an increase in figures in the mechaniza on level of farms in the Philippines as more farmers showed willingness in adop ng farm machinery with the assistance of DA t h ro u g h t h e i r R i c e M e c h a n i za o n Program. “Some of these machines have been readily available in Luzon, but most of them are s ll prototypes. We are s ll invi ng manufacturers to help us produce these machines,” said Es goy.

With these developments, PhilMech is confident that the mechaniza on level of farms in the country will reach an increase of at least 60 percent more by 2016.

India gets its Exhibi on Industry Study report

I E I A releases the industry mapping through TradeFairTimes ‘Exhibi on Industry in India‐ Facts and Figures’ – An absolute abstrac on study on Indian Exhibi on sector was released on 8th May 2015 by Mr. J. S. Deepak, IAS, CMD of India Trade Promo on Organiza on and Addi onal Secretary of Ministry of Commerce, Government of India at IEIA Open Seminar cap vated at Greater NOIDA, NCR.The study report is an a ereffect of 10 years of pan India analysis

by M Q Syed and his aggrega on at TradeFairTimes, the most read monthly publica on on TradeFair Sector in Asia, which M Q Syed has been publishing since 2005.

On account of Indian Exhibi on Industry Associa on (IEIA), TradeFairTimes took the ac on to map the absolute exhibi on sector of India in 2005 and completed the said report on 30th April 2015 IEIA, ge ng the acme physique of Trade Fair Organizers of India had mandated TradeFairTimes to backpack out the mapping for the country’s most ac va ng economic area i.e. exhibi ons and Trade

Fairs.

The revela ons of the abstrac on surprise wo r l d w i d e O rga n i ze rs , g o v t , a n d clandes ne area with its exclusive findings.

The abstrac on reveals the admeasurement of Indian Exhibi on Sector a whopping INR 94 thousand crore market with acquirement from exhibi on sales in a year called at INR 10,600 crore an investment of more than INR 83,000 crore is underway in thirteen ci es of India to assemble above six lac square meters of the indoor exhibi on space.

According to the report, there are 950 exhibi on organizers in India who organized 3,569 exhibi ons on 77 subjects in 88 ci es amid September 2013 and August 2014.

About 4,43,000 sqm of congenital indoor exhibi on Space is currently accessible in India and over 83,000 crore of investment is planned to advance an added six lakh above square meters of Space beyond 13 ci es totaling to eleven lac above square meters of indoor Exhibi on Space ge ng accessible by 2022.

The ancillary services for exhibi ons is calculated to be of INR nine hundred twenty 5 crores.

As per the study, the Indian exhibi on industry has been steadily growing at about 15%.

In band with projected bread‐and‐bu er advance of Indian Economy by 7.5% by IMF, the abstrac on sets an ambi on for the exhibi on industry to accomplish exhibi on space sales of INR Fi een Thousand Crore by the end of 2017 budgetary year; breeding business enquiries account INR 120,000 crore.

Rakesh Kumar, President at Indian Exhibi on Industry Associa on a er the release of the abstrac on said, “This is a moment of sa sfac on and fulfillment for IEIA to unlock its dream objec ve on Indian Exhibi on Sector”.

Kumar conveyed acknowledgment for M Q Syed and his aggrega on at TradeFairTimes, which took, added afflic on to carry out the analysis and aggregate the study report.

www.nmagro.com

31

A.S.SUBBARAO

SUB SURFACE DRIP IRRIGATION FOR HIGH PRODUCTION IN SUGARCANE CROP

Sr. MANAGER - AGRONOMY SBU - SOUTH AGRONOMY DEPARTMENT NETAFIM

The Sugarcane farmer faces new challenges due to the non availability of labors for cane cultivation particularly for harvesting the cane crop. The cost of harvesting alone takes away 30 per cent of the total income and forces the farmers to go for less labor intensive crops. Hence to make the cane cultivation a more profitable one, introduction of mechanization is the only option and sub surface drip fertigation offers the best scope for mechanized cane cultivation besides favoring higher cane productivity with less resources.

Why use Subsurface Drip Irrigation?

Higher Yields : Water and nutrients delivered directly to the root zone promote healthy plant growth and reduce plant stress.

Healthier, Better Quality Crops : Soil and foliage are kept dry, reducing fungal diseases caused by surface or overhead irrigation.

Safe and Efficient Delivery of Fertilizers & Insecticides : Chemicals are directly applied to the roots w

i

t

h

subsurface drip, reducing chemical pollution from leaching into the aquifer.

Fewer Weeds : A dry soil surface reduces germination of weeds.

Substantial Water Saving : Water loss due to evaporation, surface runoff or wind interference is eliminated.

Fewer Chemicals : Fungicides and insecticides are not washed off by irrigation water and direct delivery through the system reduces wastage.

Improved Soil Aeration : Fine soil particles are not washed down, decreasing soil compaction and improving root growth.

Dry Soil :Surface with a dry soil surface, cultural operations and harvesting can take place while the system is operating.

Less Salts : Less water also means less salt in the soil or the aquifer.

A Longer or Extended Irrigation System Life : The turbulent flow drip emitters and tubing are made with durable polymers. When placed underground the irrigation system is protected from damage caused by ultraviolet light, temperature fluctuations and damage due to cultural operations. Plus DRIPNET PC deters clogging.

Less Animal, Human or Mechanical Damage : No sprinkler heads, pipes or surface drip lines that can cause injury, or be subjected to damage by vandalism, animals or harvesting activities in the field.

Lower Maintenance Cost : The system is installed permanently below cultivation depth, and requires no handling.

Labor Savings : Easier fertilizer application, less weed and disease control and less maintenance means less handling.

Underground Lateral

32

How does SDI work?

Forces controlling the movement of water are mostly due to the capillary forces which are equal in all directions, and gravity which is constant and downwards. The capillary force decreases as soil wets.

Hence in dry soil the capillary force is much greater than the gravitational force and tends to move water equally in all directions. As the soil becomes wetter, the soil pores become saturated and the capillary force is weakened allowing gravitational forces to dominate and the water moves mainly downwards.

This rather simple and basic concept implies that irrigation water should be applied in short pulses so that the movement of the water in the soil is controlled mainly by the capillary action.

Advantages of Subsurface Drip System to Sugarcane Full mechanization is possible in sugarcane cultivation with SDI system. SDI system favors more ratoonability. 40 - 45% water saving, greater water application uniformity. Scope to use degraded and marginal quality water. Higher fertilizer use efficiency by fertigation. High yield per unit amount of fertilizers and possibility to use chemigation. Saves energy and labor. Long life of drip system, no sunlight effect on drip pipe life. No damage to drip laterals by agro machinery and no theft problem. a Drip line position will not change from the row. Higher net returns

Field Preparation and SDI System Injection Deep ploughing and fine tilth is very important to install SDI system. Plough the field with chisel plough to a depth of 30 cm in the drip laying areas. After ploughing, the field should be prepared with disc plough followed by rotavator and bring the soil to fine tilth. Apply 10 tones of FYM / Acre at the time of last ploughing.

Drip Product Recommendations and Dripperline Injection DripNet PC TM anti-Siphon Pressure compensating dripperline should be used for SDI as the drippers are self cleaning, no discharge variation for pressure range from 5 mtr to 25 mtr order to have equal quantity of water and fertilizer at every point in the plot, longer permissible laterals lengths and high resistance to clogging. Paired row system of planting should be adopted. Drip line spacing 1.8 m is most preferable. Spacing of pair and seed - (0.4 + 1.4) x 0.15. Emitter spacing & flow - 40 cm in order to maintain complete wetted strip. Dripper discharge of 1.6 lph and 2 lph is highly recommended to maintain uniform field capacity zone in different soils. Depth of lateral installation in SDI - 0.15 m. Use Netafim subsurface laying machinery for drip line injection for uniform depth. Dripper position should be upward direction while installing. This ensures that the silt in the system would settle at the bottom of the lateral and would not have any.

Influence on the dripper itself. Make sure that the dripper pipe doesnâ&#x20AC;&#x2122;t twist around during installation.

Consideration of Important Points at the Time of Dripperline Injection Injection speed should not exceed 6 km/h. After completing one line, DripNet PCTM should be cut at the end of line from the laying machine. Donâ&#x20AC;&#x2122;t allow that tractor to go to next line with out cut of the dripperline. Other wise dripper position will vary in the soil. Mark the set rows at the time of drip line injection. In plots with larger length, initially install the dripperlines and place the sub main in the middle and attach the dripperlines later. Make sure the main line has practical isolation points installed. Before closing the submains flush the system for testing the leakages.

33

Once the system is in full operation, check all pressures and flow rates, paying attention to the farthest points in the system. Make sure operation specifications are met. Set the controllers, fertigation pumps and test their operation Dripperline installation depth 15 cm from ground surface

Dripperline installation depth 5 cm from setts planting depth

Planting of Cane Sets Select healthy sets from 7 to 8th month old seed crop. Prepare the two budded sets and plant the sets @ 6-7 sets per running meter in one row.

It is desirable to prepare the sets just before planting.

Soak the sets with carbendazim and Chloropyriphos solution for the control of diseases. Sett should be placed 5 cm above the drip line, i.e., drip line depth 15 cm seed depth 10 cm.

Irrigation Management Germination irrigation is more important to ensure uniform field emergence and optimum plant density. Irrigate the soil immediately after planting till the wet band is achieved 25cm on either side of the dripperline. Repeat the process by monitoring the soil moisture until establishment is over. Follow recommended field irrigation schedule given by Netafim Agronomy Officer. Daily irrigation is most preferable before ripening stage. Maintain 2-3 days irrigation interval at tillering stage, i.e., 45 - days after sowing. At grand growth stage schedule irrigation on daily basis. During ripening and maturity stage increases the irrigation interval to 2 - 3 days.

Weed Control Pre emergence application of Atrataf (Atrazin) @ 1.25 kg/ha. Apply herbicide immediately after germination irrigation for higher efficiency.

Fertigation Subsurface irrigation has the ability to apply precise amounts of irrigation water directly to the plant roots. When fertilizers are injected into the water supply they too are delivered directly to the plant roots. In this manner, subsurface drip irrigation has the potential to deliver low fertilizer rates over extended time periods, with increased nutrient efficiency, and lower cost per harvested unit. It is highly recommended to make the soil analysis before the planting season to estimate the nutrient requirement.

Recommended fertilizer dose 110:45:60 kg of N:P205:K20/Ac. Apply 50% P205 as Basal fertigation and remaining 50% P205 and 100% N&K20 as fertigation. In low fertility status condition increase the dose by 25%, like wise adjust the fertilizer dose in highly fertile soils. Apply Fertilizers as fertigation at weekly intervals. Daily Fertigation gives better results, Apply Micronutrients as per local recommendation and

Wetted Bulb

Dripline

N = Nitrogen

P = Phosphorus

K = Potassium

+ = Micro Elements

Fertigation precisely delivers the plant nutrients via irrigation system in the crop root zone according to the crop demand during crop growing season

34

need based. It is recommended to apply 25kg Micro Nutrient mix as basal application. Follow integrated plant protection techniques for disease & pest controls. Fertigate the Nitrogen up to 180 days and Potash up to 210 days of crop age. Good management of the amount of water and fertilizers applied are essential for a successful SDI system. For example the concentration of phosphorous is generally low at greater depths so it is quite likely that it will be necessary to apply more phosphorous with SDI. Salt management may be important under some conditions.

Inter Cultivation and Weeding Take up Earthling up operation at 60 & 90 th days of crop age to minimize the crop lodging and ESB.

Harvesting Ensure no damage is done to the dripperlines while harvesting the cane by cutting at proper height with harvester. Care should be taken of heavy machinery not trampling on the buried drip lines.

Maintenance of SDI System It is recommended to carry the water analysis before the commissioning of Irrigation system.

Immediately after installation carry out flushing of mains, submains & dripperlines. Check the pressure before and after filtration unit for the pressure loss. It should not be more than 5 m. Check the pressure in the last lateral to maintain a minimum of 0.6 kg/cm2. Check the vacuum in the ventury. Monitor the flow rate in the water meter as per the system capacity.

Acid and Chlorination Calibrate the irrigation system for the Acid and Chlorine injection, based on the water analysis data. Monitor the laterals for root intrusion problem in the 4th, 5th months and in the last irrigation.

For root intrusion problem apply Triflurolen 1ml/ 8drippers.

Sugarcane Grown With Sub surface Drip Irrigation

SDI Sugar Cane Harvested by Machine.

Rodent Control Rodents might cause problem for SDI. Check the rodent menace and take prophylactic measures to minimize the problem.

Netafim Experience in Sub Surface Drip Irrigation Netafim installed worldwide 20,000 ha of SDI systems in sugarcane since last 10 years. In India SDI systems are installed by Netafim over 5000 ha, mainly in Tamil Nadu State.

35

BUSINESS CYCLES AND RECESSION “There must in fact be two types of recessions, with o n e ( m o r e frequent, less severe) type caused by "real shocks", and the other (rarer, more severe) type caused by

"financial shocks".

Mr Lucas wouldn't be alone in thinking that "financial shocks" are responsible for different sorts of downturns and recoveries than are normally observed (though many would disagree that "real shocks" are responsible for the others". Today's recession has affected all over the world. Due to the economic slowdown many companies loses their contract, probably it influence the employees and fails to get enough money and losing jobs. So in our daily ac vi es it affects different problems in life and our lifestyle turns very worse.Maybe this me is different. Given the empirical challenge presented by macroeconomic analysis, it's probably worth assuming that this me isn't different un l and unless you can decisively reject that hypothesis. It's just too easy to come up with just‐so stories for single episodes; once one starts falling for such seduc ons, one may become forever lost in an empirical wilderness where nothing can be known with any certainty. It's best to pretend that reality isn't like that; if it isn't then you're in the right and if it is then it won't ma er because policy prescrip ons are useless. Robert Lucas, Jr. American economist, University of Chicago Nobel Memorial Prize in Economic Sciences (1995) The Na onal Bureau of Economic Research (NBER), founded in New York in 1920, pioneered research into

understanding the repe ve sequences that underlie business cycles. Wesley C. Mitchell, one of its founders, first established a working defini on of the business cycle that he, along with Arthur F. Burns (1946), later characterized as follows: “Business cycles are a type of fluctua on found in the aggregate economic ac vity of na ons that organize their work mainly in business enterprises: a cycle consists of expansions occurring at about the same me in many economic ac vi es, followed by similarly general recessions, contrac ons and revivals which merge into the expansion phase of the next cycle; this sequence of changes is recurrent but not periodic; in dura on business cycles vary from more than one year to ten or twelve years; they are not divisible into shorter cycles of similar character with amplitudes approxima ng their own.”

What is a recession?

When A dras c slowing of the economy, where gross na onal or domes c product has fallen in two consecu ve quarters. A recession would be indicated by a slowing of a na on's produc on, rising unemployment and falling interest rates, usually following a decline in the demand for money. A popular d i s n c o n b e t w e e n re c e s s i o n a n d depression is: 'Recession is when your neighbors lose his job; depression is when you lose yours.

What causes it?

An economy which grows over a period of me tends to slow down the growth as a part of the normal economic cycle.

A recession normally takes place when consumers lose confidence in the growth of the economy and spend less.

This leads to a decreased demand for goods and services, which in turn leads to a decrease in produc on, lay‐offs and a sharp rise in unemployment. Investors spend less as they fear stocks values will fall and thus

stock markets fall on nega ve sen ment.

Indian economy 'faces slowdown not recession' India is a different economy and known as one of the most promising economies in terms of growth and investment.India, with $1.1 trillion or the second largest GDP among the world's developing economies is treading on the right path of sustained progress and development. While most Western economies are heading toward recession, the Indian GDP growth is likely to witness a slowdown from 9 percent last year to 6.5 to 7.5 percent by the year‐end.The Indian economy is immune to the global mortgage crisis, failures of banks in the West and liquidity crisis.

"Indian economy is based on robust fundamentals and enjoys the status of one of the most dynamic and growing economies in the world with over 9 percent GDP last year."

India itself is a biggest consumer market with 300 million of middle class and the lowest debt ra o of 22 percent of the GNP. The country enjoys the highest savings rate of 28 percent of the GDP.” Conclusion We won't be in the state of recession, but we will take a bigger hit than we took in 2008.

Since no new money will be pumped in, the economy won't jump like it did. Both, white and black money in circula on will be hit and infla on will go up.

People without jobs will have to work harder to find them or add a few skills (cer fica ons) to show their credibility. And the ones with job will have to work harder and add skills along.

We will s ll be on the safer side. Thanks to our values which guide us to save more and invest less unlike the US. Hold that wallet ght, pull the purse strings hard, we are in for a rough ride and it is not going to be pre y.

36

The worldâ&#x20AC;&#x2122;s largest trade fair for agricultural machinery and equipment

Hanover/Germany 10-14 November 2015 Preview days 8 + 9

DLG Service GmbH Eschborner Landstr. 122 D-60489 Frankfurt/M. Tel.: +49(0)69 24 788-0 Fax: +49(0)69 24 788-113

www.foodpromach.com