Farmers mechanize for various reasons, of which the following are the most common:
- Convenience and speed
Farm implements are often acquired with the primary aim of facilitating operations, expediting them and/or marking them less tedious. Sometimes they lead to saving in cost, but it is also not unusual for them to result in increased costs. Although capital investment in these cases does not necessarily contribute directly to higher profitability, it may have considerable indirect advantages in that it contributes to a happier labour force and may enable workers to work longer hours with greater concentration.
7.2 Increased income
Income = Price per unit x yield in units
Mechanization can contribute to a greater income in various ways. The following are the most important of these:
- Higher yield because larger areas can be cultivated
- Higher yield by more thorough cultivation. It has been shown scientifically that thorough preparation of seed beds and efficient weed control, irrigation and harvesting machinery can increase yields considerably
- Higher yield by timely cultivation. Research result show that cultivation at the right time not only increases yields, but can also result in considerable savings in costs.
- Higher prices as a result of a better-quality product This applies specially to harvesting machinery where, for example, a poor potato harvester can dramatically influence the quantity of first grade potatoes and the associated prices. The same applies to combine harvesters.
- Higher prices by storage. Modern technology makes it possible to irradiate and refrigerate perishable products so that they can be stored for relatively longer periods. The longer periods of marketing can possibly help to obtain higher prices than where products are marketed immediately.
In all these of greater income by mechanization, the additional costs that go with mechanization must, of course, be weighed up against the increased in to determine whether the net result is favourable. There are various techniques for this, some of which will be illustrated later.
- Reduction in costs
The main economic reason for greater mechanization is to reduce costs, especially labour, although mechanized processes can also have cost advantages in some other respects. The cost structure of a farm can be reduced by two inputs, namely labour and farm implements, in the right proportion. It is impossible to use only labour or only machines on a farm. What is possible, is that certain activities such as harvesting can be done mainly by labour or machines. If the decision to use mainly labour or mainly machines is made on an economic basis, it can reduce the cost structure.
- The reduction of labour bottlenecks
For various reasons sufficient labour, in so far as number, costs and standard are concerned, may not be available and farmers are left with no other choice but to mechanize. The problem that some farmers experience in general with motivating labour and labour relations, often, “force” them to mechanize. It is therefore clear that other considerations than purely economic can apply when replacing labour with farm implements.
- Tax considerations
The tax situation in which a farmer finds himself can influence his decision to mechanize. It can be the main reason for buying farm implements, or for purchasing them in specific year. Unfortunately, the inherent resistance of people to “render unto Caesar the things which are Caesar’s is often the most important reason for over-investment in farm implements and a continual acute shortage of cash.
Farmers mechanize to
- Expedite operation and make the more convenient
- Increase income
- Reduce labour bottle-necks, and
- Reduce taxation
The replacement of labour by farm implements
It has been shown that one of the main reasons for replacing labour with farm implements is to reduce costs. There are various techniques to determine the influence of such replacement on costs. Although the application of these techniques will point out the cost advantages or disadvantages of replacement, there are possible ripple effects that will not revealed.