Sustainable Intensification is one of the critical drivers of agricultural transformation involving Smallholder Farmers in emerging economies. Mechanization would be a crucial component in farming that helps improve productivity and efficiency in agriculture. FAO has estimated that the adoption of appropriate mechanization solutions would enhance productivity by 20%. Mechanization would also help significantly reduce Post Harvest Loss resulting in increased profitability. It also attracts youth into agriculture.
The major challenges of Smallholder farmers to adopt appropriate mechanization solutions are
To optimize production and profitability from farming, smallholder farmers require scientific knowledge of package of practices, farm management systems, postharvest techniques, value addition and above all be part of credible value chain. Smallholders need to build their capacities and strengthen supporting institutions.
Use of appropriate farm machineries depends on various factors viz., soil type, climatic conditions, agroecology, crop to be grown, perishability of produce, access to market etc. Comprehensive strategies need to be developed to optimize the gains out of mechanization.
Smallholders often are resource poor and risk prone. Their access to formal financial institutions is limited. They won't be able to raise necessary capital due to lack of required collateral.
The complex combination of these three challenges poses humongous obstacles to the growth of mechanization among Smallholder Farmers in emerging economies in Africa, Asia and Latin America
L3 is an integrated approach to commercially promote sustainable and profitable 'mechanization solution' to Smallholder Farmers by blending three definite solutions viz..
Knowledge and capacity development support
Diagnostic studies to determine appropriate specifications of machinery, Negotiation with Manufactures through RFQ, Facilitating Procurement, Training on repair-maintenance, ICT-based advisory on machine health, Developing SOP in local language
Innovative Lease financing options, No collaterals, Minimal down payment, flexible repayment schedule, robust built-in risk mitigation