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Agricultural mechanization in Ghana: Is specialization in agricultural mechanization a viable business model?

Author

Listed:
  • Houssou, Nazaire
  • Diao, Xinshen
  • Cossar, Frances
  • Kolavalli, Shashidhara
  • Jimah, Kipo
  • Aboagye, Patrick

Abstract

Even though the intention of the government is to promote private sector-led mechanization, findings suggest that the AMSEC model is unlikely to be a profitable business model attractive to private investors even with the current level of subsidy. The low tractor utilization rate as a result of low operational scale is the most important constraint to the intertemporal profitability of tractor-hire services. The government can play an important role in facilitating the development of a tractor service market; however, the successful development of such a market depends on the incentive and innovation of the private sector, including farmers who want to own tractors as part of their business portfolio, traders who know how to bring in affordable tractors and expand the market, and manufacturers in exporting countries who want to seek a long-term potential market opportunity in Ghana and in other west African countries.

Suggested Citation

  • Houssou, Nazaire & Diao, Xinshen & Cossar, Frances & Kolavalli, Shashidhara & Jimah, Kipo & Aboagye, Patrick, 2013. "Agricultural mechanization in Ghana: Is specialization in agricultural mechanization a viable business model?," IFPRI discussion papers 1255, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:ifprid:1255
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    References listed on IDEAS

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    1. Pingali, Prabhu, 2007. "Agricultural Mechanization: Adoption Patterns and Economic Impact," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 3, chapter 54, pages 2779-2805, Elsevier.
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    Cited by:

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    3. Diao, Xinshen & Agandin, John & Fang, Peixun & Justice, Scott E. & Kufoalor, Doreen S. & Takeshima, Hiroyuki, 2018. "Agricultural mechanization in Ghana: Insights from a recent field study:," IFPRI discussion papers 1729, International Food Policy Research Institute (IFPRI).
    4. Houssou, Nazaire & Chapoto, Anthony & Asante-Addo, Collins, 2016. "Farm transition and indigenous growth: The rise to medium- and large-scale farming in Ghana:," IFPRI discussion papers 1499, International Food Policy Research Institute (IFPRI).
    5. Giger, Markus & Mutea, Emily & Kiteme, Boniface & Eckert, Sandra & Anseeuw, Ward & Zaehringer, Julie G., 2020. "Large agricultural investments in Kenya’s Nanyuki Area: Inventory and analysis of business models," Land Use Policy, Elsevier, vol. 99(C).
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    9. Hiroyuki Takeshima & Hyacinth O. Edeh & Akeem O. Lawal & Moshudi A. Isiaka, 2015. "Characteristics of Private-Sector Tractor Service Provisions: Insights from Nigeria," The Developing Economies, Institute of Developing Economies, vol. 53(3), pages 188-217, September.
    10. Frances Warren, 2023. "Population density, urbanisation and agricultural mechanisation in modern Ghana," Review of Development Economics, Wiley Blackwell, vol. 27(3), pages 1605-1629, August.
    11. Takeshima, Hiroyuki & Edeh, Hyacinth & Lawal, Akeem & Isiaka, Moshud, 2014. "Tractor owner-operators in Nigeria: Insights from a small survey in Kaduna and Nasarawa states:," IFPRI discussion papers 1355, International Food Policy Research Institute (IFPRI).
    12. Amagoia Sagasta & José M. Usategui, 2015. "Purchase and rental subsidies in durable-oligopolies," Hacienda Pública Española / Review of Public Economics, IEF, vol. 213(2), pages 11-40, June.
    13. Houssou, Nazaire & Aboagye, Patrick Ohene & Kolavalli, Shashidhara, 2016. "Meeting Ghanaian farmers' demand for a full range of mechanization services," GSSP policy notes 9, International Food Policy Research Institute (IFPRI).
    14. Diao, Xinshen & Cossar, Frances & Houssou, Nazaire & Kolavalli, Shashidhara, 2014. "Mechanization in Ghana: Emerging demand, and the search for alternative supply models," Food Policy, Elsevier, vol. 48(C), pages 168-181.
    15. Siyu Yang & Wei Li, 2022. "The Impact of Socialized Agricultural Machinery Services on Land Productivity: Evidence from China," Agriculture, MDPI, vol. 12(12), pages 1-18, December.
    16. Houssou, Nazaire & Chapoto, Anthony, 2015. "Adoption of Farm Mechanization, Cropland Expansion, and Intensification in Ghana," 2015 Conference, August 9-14, 2015, Milan, Italy 211744, International Association of Agricultural Economists.
    17. Meng Qu & Kai Zhao & Renhui Zhang & Yuan Gao & Jing Wang, 2022. "Divergence between Willingness and Behavior of Farmers to Purchase Socialized Agricultural Services: From a Heterogeneity Perspective of Land Scale," Land, MDPI, vol. 11(8), pages 1-21, July.
    18. Houssou, Nazaire & Chapoto, Antony, 2014. "The changing landscape of agriculture in Ghana: Drivers of farm mechanization and its impacts on cropland expansion and intensification:," IFPRI discussion papers 1392, International Food Policy Research Institute (IFPRI).
    19. Yao, Ling, 2023. "Agricultural Mechanization and Structural Transformation in China," 2023 Annual Meeting, July 23-25, Washington D.C. 335642, Agricultural and Applied Economics Association.
    20. Houssou, Nazaire & Diao, Xinshen & Kolavalli, Shashi, 2014. "Can the private sector lead agricultural mechanization in Ghana?," GSSP policy notes 4, International Food Policy Research Institute (IFPRI).

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