Increasing Access to Machinery to Improve Yields, Productivity and Incomes
Georgia’s agricultural sector suffers from a shortage of agricultural machinery that severely limits production and impedes long-term growth. Through the USAID-funded Access to Mechanization Project (AMP), CNFA is using a commercially-sustainable, market-oriented methodology to develop machinery service providers. Building on CNFA’s established nationwide presence, its ability to build US consulting support through the Farmer-to-Farmer Program (FTF), and its experience developing agricultural services for farmers, the 30-month, $5 million project will use a combination of matching investments, leveraged commercial finance, business and extension training and volunteer technical assistance to establish 25-30 Machinery Service Centers (MSCs) that will provide fee-based custom machinery services to at least 12,500 small farmers. As a result of this initiative, 225 new jobs will be created, and at least $5.8 million will be generated in new sales revenue for assisted firms, resulting in more than $2.9 million in additional net income.
Most important, beneficiary small farmers will enjoy more timely planting, cultivation and harvest, greater acreage under cultivation, higher productivity, and increased incomes. By allowing farmers to cultivate land that would otherwise be left fallow, access to machinery can translate into $300 to $3,000 in additional net household income per hectare. Also, immediate availability of custom machinery services will improve the quality and yield of existing production by ensuring timely plowing, planting, plant protection, fertilizer application and harvesting. Finally, the improved efficiency of newer equipment to be delivered to the FSCs will reduce costs for both service providers and farmers, while allowing a greater area to be served by each unit of machinery. CNFA predicts increased household incomes for MSC beneficiaries totaling between $6.25 million and $10.5 million.
Through this program, CNFA will achieve the following objectives:
-
Establish at least 25 service providing enterprises offering improved mechanization services to over 12,500 additional smallholder farmers.
-
Provide technical assistance to these enterprises, using a combination of local consultants and FTF volunteers, to ensure the safe, sustainable and profitable operation of the businesses and long-term availability of services for farmers.
-
Leverage USAID grant funds with local partner matching investment, including large-scale involvement of local and international commercial finance, to maximize impact and investment in the rural economy.
-
Improve the competitive environment for machinery services by reducing the cost to farmers, as a result of increased supply of machinery and the availability of dedicated service providing businesses.
-
Facilitate the return of more agricultural land into production.
-
Contribute to increased productivity and income of smallholder farmers.
-
Provide discounted machinery services to about 3,000 resettled IDPs to enable 2010 crop production.
