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Economics of tractor ownership under rainfed agriculture with applications in Ghana

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  • Houssou, Nazaire
  • Diao, Xinshen
  • Kolavalli, Shashidhara

Abstract

This paper assesses whether tractor investment is a rational and profitable decision for farmers using firm investment theory and tractor owner survey data collected in 2013. Under erratic rainfalls, timeliness of farming operations is critical for farmers. Based on the hypothesis that owning a tractor and hiring tractor services are not necessarily perfect substitutes for farmers with relatively large farm sizes, this paper assesses whether mechanization services can be profitable for the private sector in Ghana. It particularly addresses whether farmer-to-farmer service provision is a viable alternative to current programs, which should be promoted by policymakers for scaling up agricultural mechanization in the country.

Suggested Citation

  • Houssou, Nazaire & Diao, Xinshen & Kolavalli, Shashidhara, 2014. "Economics of tractor ownership under rainfed agriculture with applications in Ghana," IFPRI discussion papers 1387, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:ifprid:1387
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    File URL: https://hdl.handle.net/10568/151392
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    References listed on IDEAS

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    1. 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.
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    Cited by:

    1. Takeshima, Hiroyuki & Adhikari, Rajendra Prasad & Poudel, Mahendra Nath & Kumar, Anjani, 2015. "Farm household typologies and mechanization patterns in Nepal Terai: Descriptive analysis of the Nepal living standards survey," IFPRI discussion papers 1488, International Food Policy Research Institute (IFPRI).
    2. Diao, Xinshen & Silver, Jed & Takeshima, Hiroyuki, 2016. "Agricultural mechanization and agricultural transformation," IFPRI discussion papers 1527, International Food Policy Research Institute (IFPRI).
    3. Thomas Daum & Regina Birner, 2017. "The neglected governance challenges of agricultural mechanisation in Africa – insights from Ghana," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(5), pages 959-979, October.

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    More about this item

    Keywords

    tractor industry; farm inputs; smallholders; mechanization; Ghana; Africa; Sub-Saharan Africa; Western Africa;
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