BRIDGING THE GAP Going online to optimise farm equipment leasing

Mechanisation is key to improving food and fibre production. But traditional linkages between companies that lease agricultural machinery and their clients are often problematic. A new online platform promises to take the stress out of hiring and leasing. Lloyd Phillips reports.

- Lloyd Phillips

Farmers sometimes require particular machinery or implements for specific purposes at specific times, but are reluctant to buy such expensive assets for limited use. On the other hand, some large-scale farming operations find it financially prudent to purchase a wide range of machinery and implements, but much of this equipment stands idle for long periods, while depreciating in value.

These scenarios have long played on the minds of the Afgri Technology Services (ATS) team at South African agricultural services group Afgri Agri Services. And while the company’s Equipment division was seeking ways to generate added value from its used machinery and implements, ATS general manager Niki Neumann and her team saw an opportunity to develop a powerful digital tool for linking agricultural equipment lessors and lessees.

MECHANISATION CHALLENGES

The adoption of even the simplest machines and implements can boost the efficiency, profitability and sustainability of resource-poor smallholder farmers. Dr Dirk Strydom, acting manager of Grain SA’s Development Programme, says that many smallholder farmers have limited access to essential machinery and implements, and struggle to source finance to buy it.

‘Scaling agricultural mechanisation services in smallholder farming systems: Case studies from sub-Saharan Africa, South Asia, and Latin America ‘, a 2020 research paper by Jelle van Loon