For decades, rice stubble has been burned in India to clear fields and prepare for wheat sowing. The easiest way of getting rid of rice crop residue is to burn it in bulk, but this poses a serious threat to the entire biosystem, from soil nutrition to human health. Deteriorating soil health results in lower crop yields, increased dependence on fertilizers, and increased water volume requirements for irrigation, all of which have negative impacts on farmer incomes.
“Earlier when rice harvesting was manual, crop residues were taken out from fields and farmers benefited from selling them,” explains M.L. Jat, principal scientist and systems agronomist at CIMMYT. “Later, when agriculture included more mechanical operations for harvesting with the increase in the production to the tune of millions of tons, crop residue became a hazard in terms of disposal that would involve huge money, labor, and logistics.”
Over the last two decades, a significant number of rural Bangladeshis – especially youth – have migrated to urban centers, looking for higher paying jobs and an escape from agricultural labor. Conor Riggs is the Global Director of Markets and Entrepreneurship at iDE. He says smallholder farmers in Southern Bangladesh are increasingly struggling to find and afford farm labor to help harvest crops and perform a variety of other on-farm activities.
Riggs says small-scale mechanization, such as two-wheeled tractors fitted with intensification machinery and surface irrigation pumps, can help farmers make up for this labor gap and increase productivity, while boosting the local economy by supporting micro- and small enterprises.
But as Riggs discussed at the recent Scale Up Conference at Purdue University, designing the perfect machine or technology is not enough to create sustainable, far-reaching impact. On the International Day for the Eradication of Poverty, we’re following up with him to learn more about the role of markets and partnerships in bringing small-scale mechanization to rural Bangladesh.
Q: Five years ago, CIMMYT and iDE co-designed and began implementing the USAID Cereal Systems Initiative for South Asia – Mechanization and Irrigation (CSISA-MI) project. What were the goals when you began?
Our goal was to establish a new industry for attachments in two-wheel tractors in agricultural mechanization, technologies like seeders, reapers and high-volume irrigation pumps for surface water. We wanted to help farmers access services through a fee-for-service model – small entrepreneurs buy machines and rent out those machines to farmers or directly provide that service themselves. There wasn’t really a market naturally growing for these machines in ways that included smallholders while being commercially viable, so we aimed to build it as best we could.
The results of this effort to date have been strong: 191,000 farmers can now access machinery services from a growing network of nearly 3,000 local microenterprise service providers, representing improved cultivation across 92,000 hectares in Southern Bangladesh. And we see abundant evidence that this market is scaling organically now that it’s established a model that works for both firms and farms.
Q: How did you create a market?
We incentivized several large conglomerates in the agri-business space to co-invest with us on several container-loads of these machines, which we imported from Thailand and China. We helped them find some early adopter dealers and local service providers who would actually buy them. Then we developed short-term smart subsidies to drive down the costs of supply chain development, accelerated customer adoption of the machines, and overall market growth.
An important aspect of our strategy is that we did not present these accelerating investments as typical subsidies; rather, we worked with our private partners to offer commercial discounts so that service providers and farmers would recognize the true value of the product and the short-term opportunity to adopt the technology in its initial commercialization phase.
We first implemented this strategy with two leading firms in the market who concurrently launched a very proactive marketing campaign. Then we started pulling back those discounts overtime, year by year, as the initial partner firms found the market opportunity, and redirected this acceleration process with an additional group of interested companies that also wanted to enter the market in an inclusive manner.
Q: So the companies were benefiting from the discount?
Yes, but we created a lot of conditions. Essentially, the more project investment that was committed by the project to discount the cost of the machinery, the more we expected to see both cash and in-kind investment from those companies. In the end, about a dozen companies come into the game with about five that have really driven a lot of heavy investment.
Partnerships have been key throughout this project. What were the different strengths iDE and CIMMYT brought to the table?
iDE is a market development organization. We focus on market-based solutions, technology commercialization, last mile distribution, and market access. Fundamentally, we see our job as de-risking the market for companies to invest in lower income areas and empower the farmer and their family as both consumers and suppliers in the formal economy. To do this, we employ a lot of supply chain development, product re-design and most importantly, we develop networks of micro-entrepreneurs to serve the ‘missing middle’ between the formal and informal economies.
CIMMYT brings leading capabilities in linking science and practice, with an un-paralleled strength in understanding the agronomic rationale and the agronomic and economic combinations of the technologies as they’re applied on the ground.
CIMMYT knew what technologies were needed on the ground in Southern Bangladesh to genuinely improve productivity and efficiency in the face of changing economic circumstances, and understood how to apply them to real world conditions in alignment with market-based diffusion mechanisms. CIMMYT was also instrumental in working closely with the Bangladesh Agriculture Research Institute (BARI) and extension services, key government partners that helped us ensure market development was in alignment with public and social policy.
It can be difficult finding a synergy between two different organizations. Did you run into any challenges?
CIMMYT and iDE have different specializations, and at the beginning, we had natural, friendly debates about how to best integrate them and achieve highly ambitious project objectives. But relatively quickly, we figured out how to learn from each other and synthesize our approaches for the best results. Both CIMMYT and iDE approached the partnership with a mission driven focus and a sense of constant, mutual respect for the value each partner brought to the table.
What do you see for the future?
As for iDE, we’re excited to expand this successful partnership with CIMMYT to figure out how we can further replicate this success in other countries where we both work. While some of the market conditions in Bangladesh have provided us with unique opportunities for technology scaling in mechanization, we’re highly optimistic that the underlying partnership principles and management systems of CSISA-MI can be replicated in other programs and country contexts – even in ostensibly more challenging market environments.
After receiving training from CIMMYT, this group of young men started a small business offering mechanized agricultural services to smallholder farmers near their town in rural Zimbabwe. (Photo: Matthew O’Leary/CIMMYT)
The sound of an engine roars as Gift Chawara, a 28-year-old from rural Zimbabwe, carefully removes a mesh bag bulging with maize grain hooked to his mechanized sheller. Fed with dried maize cobs, the sheller separates the grain from the shaft before shooting the kernels out the side into the awaiting bag. Chawara swiftly replaces the full bag with an empty one as the kernels continue to spill out.
It is eleven in the morning and the sun beats down over the small farm. Chawara and his friends have only been working a few hours and have already shelled 7 tons for their neighbor and customer Loveness Karimuno; thirteen more tons to go.
The widowed farmer watches as the bags of grain line up, ready for her to take to market. It used to take Karimuno two to three weeks to shell her maize harvest by hand, even with the help of hired labor. This grueling task saw her rub each maize ear on a rough surface to remove the grain from the shaft. Now, these young men and their mechanized sheller will do it in just a few hours for a small fee.
“When my neighbor told me the boys were shelling small amounts of maize at reasonable prices, I got in contact with them,” said Karimuno. “It’s cheaper than hiring people to help me do it manually and the speed means I can sell it faster.”
It used to take widowed farmer Loveness Karimuno (left) two or three weeks to shell her 20-ton maize harvest manually, even with the help of hired labor. Using mechanization services, all of her maize is shelled within a day, meaning she can take her grain to market faster. (Photo: Matthew O’Leary/CIMMYT)
The group of young entrepreneurs is serving almost 150 family farms around the village of Mwanga, located about two hours northwest of the capital Harare. They offer services such as shelling and planting, powered by special machinery. Since Chawara and his partners started the business three years ago, word has spread and now they are struggling to keep up with demand, he expressed.
Mechanized agricultural services have traditionally only been used by large-scale farmers who could afford the high prices, but small and medium-sized machines are fast becoming affordable options for family farmers through the advent of service providers, explained Frédéric Baudron, an agronomist with the International Maize and Wheat Improvement Center (CIMMYT).
The five young men are among the increasing number of youth across eastern and southern Africa creating a stable living as entrepreneurs in agricultural mechanization service provision, Baudron said.
Tired of the lack of profitable work in their rural community, the group of youths jumped on the opportunity to join a training on agricultural mechanization, run by CIMMYT. They heard about this training through local extension workers.
“We would probably be out of work if we hadn’t had the opportunity to learn how agricultural mechanization can be used to help smallholder farmers and gain skills to run our own business to provide these services,” Chawara expressed as he took a quick rest from shelling under a tree.
“It has really changed our lives. Last season we shelled over 300 tons of maize making just under US $7,000,” he said. “It has gone a long way in helping us support our families and invest back into our business.”
Masimba Mawire, 30, and Gift Chawara, 28, take a break from shelling and rest under a tree. The small car behind was bought by Chawara with his profits earned from the mechanization service business. (Photo: Matthew O’Leary/CIMMYT)
Chawara and his partners attended one of these trainings, hosted on the grounds of an agricultural technical college on the outskirts of Harare. For a week, they participated in practical courses led by local agriculture and business experts.
As part of the CIMMYT research project, the youth group paid a commitment fee and were loaned a planter and sheller to start their business, which they are now paying off with their profits.
Youth tend to be better at managing modern technologies and successfully take to service providing, said Baudron, who leads the FACASI project.
“We found consistently, in all countries where we work, that being a successful service provider is highly correlated to being young,” he highlighted. “However, other factors are also important, such as being entrepreneurial, educated, able to contribute to the cost of the machinery and preferably having an experience in similar businesses, particularly in mechanics.”
(From left to right) Shepard Kawiz, 24, gathers dried maize cobs into a bucket passing it to his brother Pinnot Karwizi, 26, who pours the maize into the sheller machine by feeding the hopper. The maize falls into the sheller’s barrel where high-speed rotation separates the grain from the cob. As the bare shafts are propelled out one side, Masimba Mawire, 30, is there to catch and dispose of them. Meanwhile, Gift Chawara, 28, is making sure a bag is securely hooked to the machine to collect the maize grain. (Photo: Matthew O’Leary/CIMMYT)
Mentoring and support are key to success
The young men operate like a well-oiled machine. Shepard Kawiz, 24, gathers dried maize cobs into a bucket and passes it to his brother Pinnot Karwizi, 26, who pours the maize into the sheller machine by feeding the hopper. The maize falls into the sheller’s barrel where high-speed rotation separates the grain from the cob. As bare shafts are propelled out one side, Masimba Mawire, 30, is there to catch and dispose of them. Meanwhile, Gift Chawara is making sure a bag is securely hooked to the machine to collect the maize grain.
Trials showed that when youth form a group and are provided guidance they are more inclined to succeed as service providers, explained CIMMYT agribusiness development specialist Dorcas Matangi.
“The group model works because they share the costs, the workload and they are more attractive to lenders when looking for investment capital,” she remarked.
Throughout the season, Mantangi works with local government extension workers and engineers from the University of Zimbabwe to mentor those starting out. They also organize meetings where service providers can gather to discuss challenges and opportunities.
“This is a good opportunity to iron out any problems with the machines, connect them with mechanics and spare part providers and we gain their feedback to improve the design of machinery,” she added.
Mechanization backs resilient farming systems
CIMMYT has provided a model to promote the use of agricultural mechanization among smallholder farmers through service providers, affirmed Misheck Chingozha, a mechanization officer with Zimbabwe’s Ministry of Agriculture.
Farm machinery helps farmers implement sustainable crop practices that benefit from greater farm power and precision,” he said. “This is in line with the government’s strategy to promote conservation agriculture – defined by minimal soil disturbance, crop residue retention and diversification through crop rotation and intercropping.”
CIMMYT promotes small-scale mechanization, such as two-wheel tractor-based technologies, including direct seeding planters that reduce labor and allow for improved resource allocation when implementing these practices, described CIMMYT’s Baudron.
Conservation agriculture is a sustainable intensification practice that seeks to produce more food, improve nutrition and livelihoods, and boost rural incomes without an increase in inputs – such as land and water – thus reducing environmental impacts.
With support from CIMMYT, students at the University of Zimbabwe are working to develop agricultural machinery fitted to the environmental conditions and needs of farmers in their country and other parts of Africa. (Photo: Matthew O’Leary/CIMMYT)
Students fuel next-generation machinery
As part of their degree, students at the University of Zimbabwe are working with CIMMYT to continuously improve the effectiveness and efficiency of agricultural machinery.
In a bid to improve the allocation of resources, agricultural engineering student Ronald Mhlanga, 24, worked on a prototype that uses sensors to monitor the amount of seed and fertilizer distributed by planters attached to two-wheel tractors. The device sends information to the driver if anything goes off course, helping farmers improve precision and save resources.
“Often planters will get clogged with mud blocking seeding. The sensors identify this and send a signal to the driver,” said Mhlanga. “This allows the driver to focus on driving and limits wasted resources.”
Learning from farmer feedback and working with agricultural engineers and the private sector, CIMMYT is building agricultural mechanization suited to the needs and conditions of sub-Saharan African farms, concluded Baudron.
ROME — A new training manual is set to provide practical guidance for agricultural mechanization entrepreneurs in rural areas, where family farmers commonly lack capital to invest in the farm power required to increase food production.
The five-module training manual targeted at farm mechanization hire service providers, including youth and women, was developed by researchers at the International Maize and Wheat Improvement Center (CIMMYT) and the UN Food and Agriculture Organization (FAO) and official launched July 13 at FAO’s Rome headquarters.
Bedilu Desta, an agricultural mechanization service provider, demonstrates a two-wheel tractor. (Photo: Frédéric Baudron/CIMMYT)
It sets out a syllabus which trainers can tailor to local environments to equip entrepreneurs with essential business skills and knowledge to promote appropriate mechanization farmers need to sustainably intensify production, said Josef Kienzle, an agricultural engineer at FAO.
The manual will initially be rolled out in sub-Saharan African rural communities where improved access to agricultural mechanization is crucial, he said.
Small-scale mechanization, such as two-wheel tractor based technologies including direct seed planters, represent a shift away from destructively intensive agriculture. However, the decline of hire tractor schemes means resource-poor farmers often lack the financial means to obtain them, said Bruno Gerard, director of CIMMYT’s sustainable intensification program.
“To increase the productivity, profitability, and sustainability of their farms, family farmers need greater access to affordable yield-enhancing inputs. Hire service providers can improve access to mechanization that reduces labor drudgery and promotes sustainable intensification practices,” he said.
Sustainable intensification seeks to produce more food, improve nutrition and livelihoods, and boost rural incomes without an increase in inputs – such as land and water – thus reducing environmental impacts.
“Inclusive mechanization strategies create an enabling environment and provide a framework for making decisions on how to allocate resources, how to address current challenges, how to take advantage of opportunities that arise while in the meantime emphasize the concept of sustainable crop intensification and the roles of the private and public sectors,” said Kienzle. Farm machinery enables farmers to adopt sustainable crop production intensification practices – such as conservation agriculture – that benefit from greater farm power and precision.
The manual will be initially distributed and courses organized through FAO and CIMMYT field projects in sub-Saharan Africa utilizing local trainers and experts in machinery and agribusiness, he said. The manual is expected to be rolled out to other subregional offices and hubs in the future.
Clara Chikuni has gained a reliable income since becoming a mechanization service provider and offering maize shelling in her local area. (Photo: Matthew O’Leary/CIMMYT)
Clara Chikuni, a mother from rural Zimbabwe, has secured a stable income after starting her own mechanized shelling business two years ago. Servicing maize farmers in a 5 kilometer radius of her home, Chikuni has more customers than she says she can handle and has developed reliable employment compared to her previous job buying and selling shoes.
“There is a lot of demand for mechanized maize shelling services. I am happy I can provide a service to the community and make money to support my family,” she said. “I hope with the profits I can move into the two wheel tractor business in the future.”
“The training and support gave me the know-how and confidence to start my business,” said the mother. “Other women now ask me how I did it and I encourage them to also get involved.”
There is a market for farming mechanization services that can make a big difference for a smallholder farm and help it transition from subsistence farming to a more market-oriented farming enterprise, said FAO’s Kienzle.
Apart from hire services, mechanization creates additional opportunities for new business with repair and maintenance of equipment, sales and dealership of related businesses including transport and agro-processing along the value chain.
The knowledge and expertise of both CIMMYT and FAO combined has made this manual unique and very praxis oriented, focused on smallholder mechanization businesses, he said.
The project, titled “Appropriate Mechanization for Sustainable Intensification of Smallholder Farming in Ethiopia,” aims to increase soil fertility through direct row planting of major crops in Ethiopia, such as maize, wheat and teff. However, they identified in their pilot phase that the necessary infrastructure and supply chains were not in place to ensure project sustainability and that the involvement of the private sector would be necessary.
Therefore, the project in its second phase focused on these critical activities, especially increasing capacity of service providers to deliver services and manage their businesses, and mechanics who closely support service providers in their daily business. Mechanics work with the local spare parts representatives identified by AMIO Engineering Plc, a local private sector partner in manufacturing and dealer of small scale agriculture technologies and machinery, to ensure that the fast moving and critical parts are always available in stock at their local warehouses.
In October 2017, two trainings were conducted at the Ethiopian Institute of Agricultural Research (EIAR) in Melkassa.
The first training was organized for selected mechanics by AMIO and CIMMYT with funding from the Integrated Soil Fertility Management program (ISFM), part of the German Cooperation for International Development Agency (GIZ). The one-week training covered the use and function as well as maintenance, repair and spare parts of the two-wheel tractor (2WT).
The second training, intended for service providers (SPs), focused on capacity building and quality development of small-scale mechanization services. The 44 SPs in attendance were encouraged to exchange individual experiences and expertise about service provision businesses, technical challenges in the field and the extent of potential business opportunities.
These trainings specifically focused on the use, operation, maintenance and safety of the 2WT and its ancillaries, as with correct aggregation almost all farming tasks can be accomplished with a single machine. The use of a 2WT for these tasks reduces both the time required to establish a crop and the chore of the task, by increasing productivity of both labor and crops.
Economic assessments show that mechanized planting using a 2WT is an economically viable and attractive option for both farmers and SPs. This is especially true when services offered include full use of 2WT and attachments; as these services are useful 365 days a year.
After farmers see these technologies, they are often interested in purchasing the services associated with the equipment and service providers frequently asked to procure additional equipment.
In order to achieve the aim of increased soil fertility through direct row planting of major crops in Ethiopia, the project selected six micro-watersheds in January 2016 that corresponded to ISFM intervention sites to test the delivery of small mechanization through service provision. The sites are located in the regions of Amhara, Oromia and Tigray.
The project imported six equipment packages from China for mechanized crop establishment, harvesting of small grain cereals and water pumping. These machines were loaned to individual service providers in Oromia and Tigray, and to a farmers group in Amhara. In addition, EIAR locally manufactured six trailers and three threshers which have been be dispatched to service providers.
Furthermore, in this second phase, the GIZ-ISFM through CIMMYT with Ethiopia’s Ministry of Agriculture and Natural Resources (MoANR) dispatched 100 units of 2WT with plows, and an additional 15 trailers and 18 direct row planters that can be attached.
Based on encouraging results, the second phase of the project will focus on establishing viable, private sector-based input delivery mechanisms (maintenance and repair services, spare parts, and new equipment) and generating sufficient demand for self-sustained scaling-out processes.
A new publication suggests strategies to improve rural women’s access to agricultural machinery. Photo: CIMMYT/ Martin Ranak
A new research note published for International Women’s Day, details current gender gaps in rural mechanization in Bangladesh, and outlines plans to overcome these challenges.
Using simple technologies, such as multi-crop reaper-harvesters can reduce the time farmers spend harvesting by up to 80 percent and can reduce the costs of hiring field labor by up to 60 percent. The problem is that women may face cultural constraints to working in the field, running machinery service provision businesses, and do not have equal access to financing, which is a huge barrier, as the technologies can cost $500-2000 up front.
The authors suggest a number of gender-balanced approaches to scaling-out technologies such as use of targeted, selective and smart subsidies and access to finance to women-headed households, methods to spread investment risks, and prioritizing joint learning, with husbands and wives attending field courses together and jointly developing business plans.
The research note is a result of joint efforts between the USAID/Washington and Bill and Melinda Gates Foundation supported Cereal Systems Initiative for South Asia (CSISA), the USAID/Bangladesh CSISA – Mechanization and Irrigation Project, and the the USAID/Washington funded USAID funded Gender, Climate Change, and Nutrition Integration Initiative (GCAN) project, all of which involve collaborations between the International Maize and Wheat Improvement Center, the International Food Policy Research Institute, International Development Enterprises, the International Rice Research Institute and the CGIAR Research Program on Climate Change, Agriculture and Food Security.
