Strategies
and Recommendation
Agricultural
mechanization is one of the components of agricultural
modernization as stipulated in AFMA. Based on the AFMA framework,
the roadmap for agricultural mechanization should aim to: 1)
promote use and widen farmers’ access to farm machines; 2)
enhance the delivery of support services to improve farm
mechanization; and 3) encourage the development of a progressive
agricultural machinery manufacturing industry. Based on the
development objectives set forth by AMMDA and the National
Agriculture and Fishery Council (NAFC), the following strategies
targets and strategies were identified to achieve the objectives
(AMMDA,2003)
Strategies
1.
Enactment and implementation of progressive pricing polices
to support fair product prices at the farm gate and
ensure stable incomes for farmers. Only under such condition
will farmers gain financial ability to
invest in farm machineries.
2.
Some policies that are currently in force impede the
formation of an environment that favors sustained development of
agricultural mechanization and farmer access to agriculture
machinery. Policy reforms include:
a.
Liberalizing imports and reducing tariffs on imported
agricultural machines and spare parts that are not produced
locally
b.
Lifting the value added tax on intermediate agricultural
machineries and their components
c.
Increasing government investment in research, development,
and promotion of farm mechanization
d.
Sustaining rural electrification
3.
Implement measures that will increase credit available to
farmers for acquiring farm machinery
4.
Unify R&D efforts and strengthen technology transfer to
farmers through:
a.
Conduct of a comprehensive review and assessment of
machines suitable to farmers and their farm conditions
b.
Promote right farm tools, improve packaging of mature,
ready-to-use technologies and disseminate information to users
c.
Improve linkage among private and public institutions
engaged in farm mechanization development
5.
Provide incentives for a more developed agricultural
machinery industry to ensure availability of appropriate machinery
through:
a.
Tariff reduction on farm machine imports and machine
components that are not locally produced
b.
Implementation of industrial extension measures, including
standardization and product certification services
c.
Promotion of investment and joint ventures in farm
machinery manufacturing
d.
Establishment of an industry linkage to encourage mutual
support and complementation of manufacturing and after-sales
services
e.
Encourage agricultural machinery exports.
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