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INTRODUCTION
Mechanization in agriculture can be referred to as a lens through which to examine the disputes around ideas and markets in the changing landscape of international development (Cabral, 2019). Over time, FAO has championed, and at the same time advocated agricultural mechanization in Africa since the days of the post-independence enthusiasm about the role of agriculture in nation-building. FAO’s institutional preference for mechanization sometimes undermined a neutral assessment of appropriate solutions. It supported the Tanzanian government’s protractor policy, in the 1970s, in the face of evidence that tractors were not suitable for the country’s circumstances. It put considerable effort into mobilizing support for large-scale modernization and tractors, despite the lack of repair and maintenance services or evidence that animal draft technology would be more adequate for peasant agriculture to move beyond hand hoe cultivation (Onomu, Aliber & Agbugba, 2020). This article discusses the introduction; agricultural mechanization: from an SME perspective; benefits of tractors in modern farming and agriculture; the role of private sectors in enhancing agricultural mechanization; government versus private tractor service providers; bottlenecks encountered by SME Tractor Service Providers; conclusion and recommendations.
Unable to persuade donor agencies to finance the revival of the failing factorization programme, FAO turned to the private sector and the multinational corporations that sold tractors (such as Fiat, Ford, Massey-Fergusson, John Deere and Caterpillar) for the provision of training, repair and maintenance services. The initiative only had limited success as the conditions were not attractive for business investment – largely because of the looming threat of nationalization of private operations by the Tanzanian socialist regime (ibid). Yet, the emphasis on the role of private providers and market development, not least to ensure the availability of spare parts and repair services, was a feature of FAO’s mechanization vision. Another feature of FAO’s approach was the emphasis on the technical leadership of the Ministry of Agriculture, reflecting a view that states have a role in guiding the development of creating the conditions for an enabling market. FAO’s narrative on Africa’s mechanization continues to advocate for market solutions (Matz, 2013), while emphasizing a strategic role for the public sector. The state should therefore strengthen the regulatory framework (to create an enabling business environment), stimulate demand (for example, through subsidies & training) and promote particular types of technological solutions – which are FAO policy guidelines for sub-Sahara African (SSA) governments illustrate this dimension (Amadhila, 2016).
Agricultural Mechanization: From a SMEs Perspective
Economy Watch, EW (2010) observed that there is no single definition of Small and Medium-Scale enterprises (SMEs) mainly because of the wide diversity of SMEs businesses. However, EW stated that one of the best criteria to describe SMEs should is based on the maximum number of employees, maximum turnover and maximum annual balance sheet total. Takeshima et al. (2013) defined SMEs concerning farm mechanisation as a condition where small-scale tractor service providers or cooperatives who own one or two tractors render tractor services to smallholder farmers in an area to make a profit. Of late, SMEs hiring tractor rental services have acted as a catalyst that revolutionised the mechanisation of the agricultural sector of some countries to the extent that some researchers are currently advocating for tractor hire service as the best model for mechanisation (Singha et al., 2012).
Small and Medium Micro-enterprise has been widely regarded as the driving force in economic growth and job creation in both developing and developed countries (Norman, 2012). However, the survival rate of small, medium and micro-enterprise is relatively low; as only less than half of the newly established businesses have been able to survive beyond a period of five years (Brink et al., 2003). Like other businesses, most SMEs tractor service providers are soaked up with different challenges that tend to inhibit their effectiveness, growth, and increased their cost of service. One of the challenges is the inability of the smallholder farmer to pay a premium price. There is a natural ceiling beyond which smallholders find it difficult or unwilling to hire a tractor for ploughing, harvesting, tilling ridging, transporting and every other tractor service activities which makes it difficult for most smallholders to use private tractor services effectively (Takele and Selassie, 2018). Challa (2016) observed that most tractor owners relied on non-government sources for the maintenance and training of tractor operators.
BENEFITS OF TRACTORS IN MODERN FARMING AND AGRICULTURE
Tractors have traditionally been used on farms to mechanise several agricultural tasks (Onomu, Aliber & Agbugba, 2020). Modern tractors are used for ploughing, tilling and planting fields in addition to routine lawn care, landscape maintenance, moving or spreading fertiliser and clearing bushes. They offer advantages on small farms as well as in regular lawn and garden work.
Wide range
Tractors are available in a wide range of options to suit specific tasks and requirements. Subcompact or compact tractors available in a horsepower range of 15hp to 40hp are ideal for heavy-duty landscaping jobs and tasks such as digging, hauling or ploughing on large gardens, fields and pastures.
A smaller version of compact tractors, subcompact tractors have the power and versatility to perform a large range of gardening tasks including mowing, moving mulch and tilling gardens. Compact tractors are a smaller version of utility tractors and are ideal for landscaping tasks. Also known as diesel tractors, utility tractors are recommended for mechanising complex farming tasks and come in different models with a horsepower range of 45hp to 110hp. A wide range of farming implements can be attached to utility tractors to help accomplish various jobs.
Versatility
Though available in a wide range of models, modern tractors are designed and manufactured to offer versatility in performing a wide range of tasks. Compact tractors can accomplish tasks ranging from gardening to simple farming jobs, with the ability to do more by attaching various implements such as front loaders or backhoes.
Power and durability
Tractors are typically designed with powerful engines to run over rough terrain and pull extremely heavy loads, making them effective in tough farming or landscape tasks. Modern tractors also come with cast iron front axles for extra strength and durability.
Ease of transmission and operation
Modern tractors feature powershift transmission and hydrostatic transmission to simplify operation. While these tractors are also provided with power steering to make turning much easier, advanced models help reduce operator fatigue with exclusive shift controls and an automatically responsive transmission.
Role of Private Sectors in enhancing Agricultural Mechanization
Importantly, the recently launched Sustainable Agricultural Mechanization for Africa (SAMA) strategy has stressed the role of the private sector in leading the supply of machinery, the provision of hardware services and the development of innovative business models (FAO, 2009). In addition, mechanization guidance is now shaped by concerns for development sustainability, which gives equal weight to the social and environmental dimensions and impacts of mechanization, as well as economic efficiency. FAO’s narrative, therefore, emphasizes sustainability and the need to promote mechanical solutions that are suitable and affordable for small-scale farmers, and are compatible with the preservation and enhancement of natural resources and the environment (FAO 2013).
As a matter of fact, private provision should be developmentally responsible thereby offering solutions suitable for small-scale farms and the environment (Sims et al., 2016). In other words, markets should therefore be guided to supply small-scale mechanical solutions and machinery compatible with conservation agriculture, such as implements that produce minimum soil disturbance (Baudron et al. 2015; Sims and Kienzle, 2015). Whilst there is a relatively widespread consensus among the most influential international sources of finance and policy guidelines on mechanization (including FAO, the World Bank, African Development Bank, United Nations Industrial Development Organization and IFPRI) that the state should focus on the regulatory environment and refrain from directly
Government versus Private Tractor Service Provider
The debate between the two tractor service providers (government and private tractor services) has been generating issues based on the different roles of each tractor service provider. Government intervening in mechanisation by providing access to agricultural equipment such as tractors could be justified by some reasons such as market failure, lack of access to finance and the low level of the smallholder farmers’ education (Gauchan and Shrestha, 2017). More so, providing support for smallholders farmers in ensuring the use of the tractor is necessary, especially since a good number of the smallholder farmers are poor and do not have the ability to acquire modern mechanisation implement; however, the ways and manners in which government rendered tractor service had raised concern among various researcher (Hittersay, 2013). The private tractor service provider who is being considered to be more effective in rendering tractor services to smallholder farmers are faced with the challenge of the high price, low financial resources to purchase adequate equipment and limited skill personnel to operate their tractor (Challa, 2016).
BOTTLENECKS ENCOUNTERED BY SME TRACTOR SERVICE PROVIDERS
From a research study conducted by Onomu, Aliber & Agbugba (2020), a ranking of the various constraints faced by small scale enterprises was based on the severity peculiar to them. In the area of study, the respondents recorded up to fourteen (14) constraints impeding the growth of tractor services. The mean weighted scores calculated for each of the constraints were based on the frequency of the challenges, as well as the positions under which the constraints appeared as listed by the respondents, who are SME tractor service providers. Some of the constraints identified by tractor service providers are natural, while some others are caused by other people. For instance, while seasonality is a natural occurrence affecting tractor service providers, the sales of inferior spare parts are man-made.
Table 1.0: Bottlenecks encountered by SME tractor service providers in a selected SSA
Communities
| Constraints | How frequent it was listed | % of frequency | Weighted score | Mean weighted score | % of weighted mean | Rank |
| Distance to place of repair | 16 | 15.1 | 380 | 47.5 | 13 | 3rd |
| Negligible/too few qualified tractor mechanics | 13 | 12.3 | 475 | 59.4 | 16 | 1st |
| Seasonality | 8 | 7.5 | 190 | 23.8 | 6 | 7th |
| Inability of smallholders to pay a high price | 15 | 14.2 | 445 | 55.6 | 15 | 2nd |
| Limited access to market | 2 | 1.9 | 25 | 3.1 | 1 | 14th |
| Lack of access to finance | 5 | 4.7 | 120 | 15.0 | 4 | 9th |
| The High price of diesel | 5 | 4.7 | 145 | 18.1 | 5 | 8th |
| Inferior spare part | 8 | 7.5 | 265 | 33.1 | 9 | 5th |
| Stumps | 8 | 7.5 | 230 | 28.8 | 8 | 6th |
| Small nature of the smallholders farm | 11 | 10 | 315 | 39.4 | 11
|
4th |
| High cost of maintenance and high cost of spare part | 3 | 2.8 | 100 | 12.5 | 3
|
10th |
| Lack of trained tractor drivers | 3 | 2.8 | 75 | 9.3 | 2 | 11th |
| Lack of government support | 6 | 5.7 | 145 | 18.1 | 5 | 8th |
| The high price of new tractor | 2 | 1.9 | 45 | 5.6 | 1 | 12th |
| Lack of managerial and operational training | 1 | 0.9 | 35 | 4.4 | 1 | 13th |
| Total | 106 | 100 | 2990 | 373.7 | 100 | 0 |
Source: Onomu, Aliber & Agbugba, 2020
From the table, negligible or too few qualified tractor mechanics appear thirteen times within the listed challenges faced by the SME tractor service providers. Although too few qualified tractor mechanics are not the most frequent constraining factor identified by the SME tractor service providers, it also ranked as the most severe (1st) obstructing the growth of SME tractor services. This is an indication that tractor repair personnel are few in the area. In their study on tractor farming, the result concurs with the findings of Sims, Röttger and Mkomwa (2011), that tractor repair personnel and tractor service repair centres are scarcely available, particularly in developing countries such as the SSA. Furthermore, the respondents sampled noted that some of the technicians who repaired their tractors are not directly trained in tractor reparation. However, they agreed that they are trained to repair other heavy machines such as bulldozers and tanker trucks. Besides the factor that the mechanics are limited, the respondents indicated that most of the technicians are not professionals. Some of the SME tractor service providers lamented that the non-professionalism of some of the technicians facilitates the speed with which their tractors depreciated, especially in terms of engine functionality.
Challenge of Inferior Spare Parts
From the table, the results indicate that the grimness of inferior spares is the 5th most intense challenge, recording a mean weighted score of 33. More so, the results indicate that some of the SME tractor service providers indicated that the challenge of inferior spare parts is a significant constraint and that they sometimes prefer to purchase used spare parts from a scrapped tractor. The respondents further complained that the use of inferior spare parts, together with the inefficiency of some of the technicians forced them to engage in frequent maintenance, especially in fixing the tractor spindles. However, regardless of the fact that some of the spare parts are inferior, few (3%) of the tractor service providers indicated that they purchased spare parts at a high cost.
The inability of Smallholders in Paying for Tractor Services due to High Charges
The inability of the smallholders in paying the stipulated high charges and the high level of indebtedness by some of the smallholder farmers have been recorded as the second-highest (15%) mean weighted score. This, therefore, places the inability of the smallholder farmers in paying the desired price as the second most severe constraint hampering the development of SME tractor services in the study area. In other words, SME tractor service providers in the selected communities of SSA faced severe challenges of the smallholder farmers experiencing difficulty in paying the high price desired by the SME service providers (The Nation, 2015). This is because tractor service providers are interested in smallholder farmers paying higher prices than the minimum price (N 20,000 or 48.51 USD and N18,900 or 45.84 USD) charged for ploughing area.
High Cost of Maintenance
The cost of tractor maintenance is another issue mentioned by the SME tractor service providers. The cost of maintaining the tractors is quite exorbitant that the minimum amount of money expended by SME tractor service providers on routine maintenance is not less than N19, 000 or 46.13 USD. The high cost of maintenance is ranked 10th most painful challenge encountered by the SME tractor service providers. This result is consistent with von Hase (2013) who identified the high running costs of staff and tractor maintenance to play a key role in the challenges faced by private tractor service providers.
Challenge of Long-Distance travelled for Repair
In Table 3, the challenge of the distance travelled to the place of repair, or distance travelled by the repair person was mentioned sixteen times by sixteen tractor service providers. This makes the challenge of the distance travelled to get a technician to have the highest frequency of occurrence among the other challenges faced by SME tractor service providers in the study areas. In other words, the majority (15%) of the respondents indicated that long-distance travel to a technician or for the repair of a tractor is a key challenge facing them. Although long-distance travel to the place of repair has the highest frequency of occurrence, it is still not the most severe constraint facing SME tractor service providers. This is because most tractor service providers do not rank it as the first challenge facing them. Hence, the mean weighted score of long-distance travel in employing the services of a technician ranked the third most severe challenge facing the tractor service providers. Some of the respondents reported that on some occasions, they had to travel to neighbouring communities to source for technicians to repair their tractors. The demerit of long-distance travel in finding repairers or technicians is a common constraint in West Africa, as well as SSA communities. Hence, this result agrees with the findings of Maradun, Sanusi and Akubuo (2013) who noted that due to the scarcity of tractor repair personnel in the Zamfara State of Nigeria, tractor owners had to travel long distances in search of repairers; their study indicated that there are no tractor repairer workshops in the area.
Fragmentation of Smallholder Farms
Small sizes of smallholder farmers’ plots pose a challenge to tractor service providers in the area of study. This constraint faced by smallholder farmers indicated a weighted score of 315 and ranked the fourth most severe constraint limiting the growth of SME tractor services in the area. In the interview sessions, the respondents reported that during data collection, the smallholders indicated fragmented farm sizes which made it difficult for them to use tractors. In their study, Sims, Hilmi and Kienzle (2016) made a similar observation that the small and fragmented nature of smallholder fields is problematic to tractorisation and tractor owners.
However, with respect to financial reasons, the respondents indicated that the majority of smallholder farmers find it difficult to pay the cost of using tractors in ploughing a full hectare all at once. To solve the land fragmentation problem, ploughing the smallholder farmers’ farm who is able to pay the cost of ploughing an acre using the tractor, some of the tractor service providers noted that they had to group farmers in a specific area together. In other words, tractor service providers merged two or more smallholders at a particular location who wish to plough an acre or more using the tractor together, so as to reduce the problem of land fragmentation.
Impact of too many Stumps on the Smallholder Farm
The presence of the stump is the sixth most severe challenge confronting the activities of the SME tractor service providers. The presence of stumps disturbs the free movement of the tractor, destroys the blade of the disc harrow and slows down the speed of operation. Some of the SME tractor service providers confirmed that in some fields, they have to employ the services of additional casual workers that assist in the removal of stumps. It is pertinent to note that the increase in the numbers of casual workers consequently results in a rise in expenditure. The SME service providers equally said in some conditions, that they have to inspect the field to be ploughed in ascertaining the level of presence of the stump before they make their charges. In order to solve the challenge of stumps, an SME service provider suggested that tractor that can remove stumps should be provided.
The numbers of tractor service providers who complained about the challenge of stumps were comparatively higher in the Niger Delta region of Nigeria than in the North-Central region of sub-Sahara Africa. This is an indication that the effect of the stump is more severe in the Niger Delta region than in the northern regions of Nigeria. One of the reasons is farming systems practised by smallholder farmers. Many of the smallholder farmers in the study areas practice shifting cultivation which allows the farm to fallow.
Challenge of Season
While seasonality does not have a direct impact on the tractor, neither does it cause by human activities, it drastically impacts the income of the SME tractor service providers during the offseason. The number of smallholders that demand the services of SME tractor service providers is extremely reduced in some seasons. From the table, seasonality ranks seventh most treating challenge in the development of SME tractor services. This result is consistent with Takeshima, Pratt and Diao (2013) that mechanisation hire services demand is time-bound due to the seasonality of agricultural activities.
Lack of Government Support
Lack of government support also poses a challenge to SME tractor service providers. More so, it has a mean weighted score constraint of 145 and ranked eighth most severe challenge among the challenges faced by the SME tractor service providers as indicated in the table. Virtually all of the respondents indicated that they do not receive support from the government. However, some of the SME service providers agreed that the only support they have received from the government was the gift of the tractor. Those who received tractors from the government acknowledge the fact that they went into the business of tractor service after they acquired tractors from the government.
High Price of Diesel
The high price of diesel in the business of SME tractor service ranked the eighth challenge. From the table, the challenge of the high price of diesel has the same mean weighted score (145) with a lack of government support. Although the price of diesel is not constant and not also the same everywhere in the specific SSA countries, some of the tractor service providers said they paid as high as N220 (0.58 USD) per litre of diesel. The constant rise in the price of diesel makes the tractor service providers increase the price of their services which in turn prevents the vast majority of the smallholder farmers from affording the price. This result supports the argument of Sims, Hilmi and Kienzle (2016) that a high and constant rise in fuel price is a major concern for the tractorisation of smallholder farmers.
Lack of Access to Finance
The role of finance is very significant in any business development and the growth and expansion of any business are likely impossible without access to finance. Hence, respondents indicated that lack of access to finance has been identified as a major pitfall for the development of SME tractor hiring business. As recognized by SME tractor service providers, lack of access to finance ranks ninth most awful challenge that affects the SME tractor service provider in the study area (as shown in the table). The result furthered concurs with Zhou (2016) who reported that one of the severe challenges impeding the flourishing of mechanisation in many African countries is the lack of access to credit. The SME tractor service providers said that, despite the fact that they already own tractors, they cannot work to the bank, especially commercial banks to request a loan for the expansion of their business. They stated further that commercial banks turn down their loan request irrespective of the fact that they put in their tractor documents. A similar report by Sims et al. (2016) noted that the lack of desire by commercial banks in granting loans for agricultural activities is a submerging cause why the development of the smallholder mechanisation is stunted.
High Cost of Tractors
Lack of access to finance coupled with the high cost of a new tractor form the reasons why the majority of them do not own more than a single tractor. Some of the SME tractor service providers indicated that they would have purchased a new tractor if they had access to finance. However, in spite of the reality that the SME tractor service providers do not have access to finance, they said that the high price of a new tractor has contributed to their predicaments.
Smallholders’ Limited Access to the Premium Market
As shown in the table, the challenge of limited access to the premium market by smallholder farmers is second to the least challenges faced by the SME tractor service provider in the areas with only a 1.9% occurrence level in the ranking. Considering limited access to the smallholders as a challenge by the SME tractor service providers could be attributed to the inability of some of the smallholders to pay a high price for the services of SME tractor service providers. However, the challenge of access to the smallholder market as tractor users is not very severe to the tractor service providers.
Lack of Training
The results indicated that lack of managerial and operational training ranked the least constraint facing SME tractor service providers in the study area. Although it is not the major challenge, the SME tractor service providers need to factor in management and operational training programmes. This could be a reason for the lack of managerial and operational training was identified as a challenge faced by them. This result agrees with Sims & Kienzle (2006) that hire service providers need training in the areas of equipment maintenance and operation.
Lack of Skilled Tractor Operators
The lack of trained tractor drivers ranks the eleventh weighted challenge combating the prospect of the SME tractor service providers (as seen in the table). The constraint could be attributed to the fact that many persons do not grow up choosing tractor operations as a career. This result agrees with the findings of Daum and Birner (2017) that all the stakeholders involved in the promotion of mechanization services for smallholder farmers in Ghana encountered the problem of limited trained tractor operators.
Government-Owned Tractor Hire Services
The study indicated that all the government tractor service providers interviewed in the study area are males with formal education. The highest level of education acquired by the respondents in charge of the government tractor hiring service sampled were first degree holders (BSc honours).
Adequacy of tractors in both states
When asked if there are enough tractors in the local government areas, all of the government tractor service providers like the SME tractor service providers said there are not enough tractors in their local government. This is an indication that more tractors are needed in both states.
Challenges faced by the Government Tractor Service Providers
When asked to list the challenges they encounter, the government tractor service providers listed the challenges to include; lack of funds/finance location for the maintenance of the tractor, lack of supervising vehicle, the small nature of smallholder farmers, and long-distance travel for operation, Lack of manpower/staff capacity and corruption particularly from the operators. Like the SME tractor service providers, the government tractor service providers also identified the small nature of the smallholder field as another major challenge that is weakening the efficiency.
CONCLUSION
The study is quite an interesting one and is motivated by the poor tractorisation and ongoing transformation in Africa’s agriculture sector. It is expedient to holistically unveil its benefits, private sector roles in enhancing mechanization, government service versus private tractor service providers, as well as the constraints inhibiting its transformation while investigating the current demand trends for it. Indeed, there is a dearth of empirical research that investigates the features of the suppliers of mechanization services such as tractor service providers, the constraints preventing its sustainability, current demand trends for tractor services by the smallholder farmers and the possible nature of the future demand. The study highlighted the constraints encountered with tractor services, especially the most severe ones. Among the bottlenecks faced by the SME tractor service providers, too few qualified tractor mechanics, the inability of the smallholders in paying a premium price and the long distance to the place of repair are the most severe constraining factors. The insignificant nature of the smallholder farms is a challenge to both the SME and government tractor services. However, the challenges of poor maintenance and corruption are peculiar to government tractor services.
RECOMMENDATIONS
Based on the findings of the study and the significance of tractor services in providing job opportunities for rural households, the following recommendations were made:
African governments and private investors should establish tractor repair and operational training centres in each country. Since there are elements of poor maintenance and corruption that are peculiar to the government-operated tractor service, an alternative policy of private market-driven tractor services where the government creates a conducive atmosphere for the private entrepreneur to strive should be formulated rather than direct involvement in the rendering of tractor services.
Moreso, since there is an increasing demand and room for tractor service businesses, more people should invest, as well as engage in tractor service businesses. Moreover, with respect to suggestions for further study, more research should be carried out on the contributions of tractor service sources to smallholder farmers’ efficiency as that will better guide African governments and policymakers on which tractor sources to strengthen. Furthermore, research on determining the profitability statuses of tractor service providers should be encouraged. Finally, studies on investigating the willingness of smallholder farmers to pay a premium price for tractor services should be conducted.
Dr. Agbugba is the Director, Research & Development/International Coordinator, Africa Agriculture Agenda (AAA); Advisory Board Member, African Council for Trade, Tourism and Investment (AfCoTTI); Full-time Lecturer/Researcher, Department of Agricultural and Applied Economics, Rivers State University (RSU), Port Harcourt; Faculty Member, Rome Business School (Nigeria Campus). Since 2003, he has been carrying out research on agribusiness and agricultural economics especially in the marketing of food and agricultural commodities, as well as in developing frameworks for effective and efficient procedures for agribusiness marketing and branding activities in selected sub-Saharan African communities.
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