Management System of Small Farm Machinery Hiring Business for Rice Farming Operations in Kampar Region, Indonesia

Paman, Ujang and Khairizal, Khairizal and Wahyudy, Hajry Arief (2018) Management System of Small Farm Machinery Hiring Business for Rice Farming Operations in Kampar Region, Indonesia. In: EurAgEng 2018 conference, 8 – 12 July 2018, Wageningen, the Netherlands.

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Abstract

Development of using farm machines for agricultural operations has created business opportunities for smallholder fatmers in rural areas. Custom hire offering machinery services for farmers is one of business models at the farm level which has been adopted widely in many developing countries rvith different management system and economic benefit depending farming practices. This paper attempts to examine the management system of small fann machinery hire businesses for rice farming operations in Kampar Region. We have surveyed and purposively selected as 20 groups ofhire service providers of small farm machinery in the region. Group managers and machine operators were personally interviewed using questionnaires to collect primary data during September - October 2017.The results showed that the small farm machinery hire services were small businesses managed by farmer groups and operated within village area. They managed 2 - 4 kind of fann machines and offered hiring senrices for their group mernbers according to machine orvned with a lower charge rate. The businesses became sources of increasir.rg and diversilying family incornes for smallholder farmers in the region. Moreover, the availability of the farnr machinery hire businesses was helpful stalllrolder farmers to access farm machinery for being mechanized their rice farming operations.

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