Rental of Agricultural Machinery as an Approach to Cost Reduction in Food Supply

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The Ministry of Agriculture, Forestry and Fishery started a project to promote the rental of agricultural machinery in March 2009, with the aim of reducing the costs associated with using such equipment.

Despite the limited use of agricultural machinery throughout the year, farmers have tended to purchase such equipment because the agricultural machinery business has always been based on selling, not renting. However, as the agricultural situation has grown increasingly severe due to rises in the price of manufacturing supplies, investments in machinery have become an increasingly heavy burden for farmers, and this has heightened the need for an alternative to purchasing.

For this purpose, the Ministry has identified the rental of agricultural machinery as an effective cost-cutting measure. This project will assist in establishing rental businesses to achieve a policy target of reducing the cost of the food supply by 20 percent within five years.

This project, with a budget amounting to 424 million yen (about U.S. $4.3 million), includes the following support: formulation of business guidelines, collecting and providing related information, maintaining agricultural machinery for rental, conducting attitude surveys of farmers, disposal of agricultural machinery owned by farmers who decide to rent such equipment, and carrying out necessary training on the safe operation of rented machinery.

Posted: 2009/07/26 06:00:15 AM