What Is a Farm Machinery Bank? A Complete Guide for Farmers
A Farm Machinery Bank enables farmers to access agricultural equipment through custom hiring and rental services, which eliminates the need for a large upfront investment. In this blog, you will learn about what a Farm Machinery Bank is, how it works, and the benefits offered to farmers and government schemes.
Table of Contents
- Farm Machinery Bank – At a Glance
- What Is a Farm Machinery Bank?
- How Does a Farm Machinery Bank Work?
- What Are the Benefits of a Farm Machinery Bank?
- What are the Different Types of Machinery Available at Farm Machinery Bank?
- Who Can Use a Farm Machinery Bank?
- Farm Machinery Bank vs Buying Machinery
- What is the difference between Farm Machinery Bank and Custom Hiring Centre?
- Government Support for Farm Machinery Banks
Farm Machinery Bank - At a Glance
|
What you want to know |
Quick Answer |
|
Definition |
A local facility that provides agricultural machinery on a rental basis. |
|
Why use it? |
To access machinery without purchasing every machine. |
|
What can you hire? |
Machinery and implements like thresher, seed drills, etc. |
|
Who benefits most? |
Small and marginal farmers |
|
How does this work? |
Machinery is made available on a rental/custom-hiring basis |
|
Where can you find hiring services? |
Custom Hiring Centers or FMBs. |
|
Any fixed rental places? |
No. Hiring charges and transaction terms depend on the service provider. |
What is a Farm Machinery Bank?
A Farm Machinery Bank is a local rental hub where farmers can rent agricultural machines at an affordable price. It helps small and marginal farmers use heavy equipment like seed drills, threshers, and tractors without having to purchase them. You can simply rent the equipment for a specific farming operation. According to PIB release in 2024, it stated that 80% assistance for village-level FMB projects costs up to ₹30 lakh.
How Does Farm Machinery Bank Work?
Farm Machinery Bank has its complete own process of working. The process is explained in detail below.
- Firstly, you need to Identify the agricultural operation.
- Then, select the required machine or implement. Then, check its availability.
- After that, you can contact the Farm Machinery Bank or hiring center.
- Confirm the rental charge and period of use.
- Arrange transportation if required.
- Use the machinery for agreed agricultural operation.
- Return the machinery according to the agreed terms.
The important point is that the farmer does not need to purchase the machine merely to use it for one or two operations.
What Are the Benefits of a Farm Machinery Bank?
The main advantage of a farm machinery bank is that it helps overcome the high cost of individual machinery ownership. Some of its benefits include:
- It reduces the need for large investment.
- It helps small and marginal farmers with low budgets to get easy access to machinery.
- Agricultural mechanization can reduce the time and manual labor required for several farm operations.
- It helps create rural employment opportunities and reduces the problem of economies of scale.
What are the Different Types of Machinery Available at Farm Machinery Bank?
Depending on the center, farmers may find equipment such as:
- Power tillers
- Ploughs
- Cultivators
- Power Harrows
- Rotavators
- Seeders and planters
- Ridgers
- Sprayers
- Power weeders
- Multi-crop threshers
Who Can Use a Farm Machinery Bank?
For establishing Farm Machinery Banks under the Government's programme, eligible categories can include organizations such as:
- Cooperative societies of farmers
- Registered farmer societies
- Farmer Producer Organisations (FPOs)
- Self-Help Groups (SHGs)
- Panchayats
Farm Machinery Bank vs Buying Machinery
|
Factor |
Farm Machinery Bank |
Buying Machinery |
|
Investment |
Pay for hiring |
Only pay the purchase cost |
|
Ownership |
No |
Yes |
|
Use |
Hire when required |
Use whenever required |
|
Maintenance |
Depend on hiring management |
Owners manages it |
|
Storage |
Not your responsibility |
Owners must arrange it |
|
Best Suited for |
Occasional or seasonal requirements |
Regular or frequent use |
What is the difference between Farm Machinery Bank and Custom Hiring Centre?
Both Farm Machinery Bank and Custom Hiring Centre are used together in government agricultural mechanization programme. The basic difference between them is as follows:
- Farm Machinery Bank: It is a facility where farmers can rent basic farm machinery and equipment. Its main purpose is to provide machinery at an affordable cost.
- Custom Hiring Centre: It is a center from which farmers can hire high-tech agricultural machinery and equipment. Its main purpose is to provide machinery to farmers without requiring them to buy it.
Government Support for Farm Machinery Banks
The Government has promoted Farm Machinery Banks through the Sub-Mission on Agriculture Mechanization (SMAM), which is implemented by the State Government. It also provides financial assistance through the DBT schemes for farm implements.
Its broader objectives include:
- Increasing access to farm mechanization among small and marginal farmers.
- Improving access to areas with low farm-power availability.
- Reducing the disadvantage caused by small landholdings and high individual machinery costs.
- Creating awareness through demonstrations and capacity building.
- Supporting testing and certification of agricultural machinery.
Therefore, farmers looking for a subsidy on machinery should check the current SMAM provisions, eligible machinery, beneficiary category, and state-level targets before purchasing any equipment.
Frequently Asked Questions On Farm Machinery Bank
1. What is a Farm Machinery Bank?
A Farm Machinery Bank is a local rental hub where farmers can rent agricultural machines at an affordable price.
2. What is the main purpose of a Farm Machinery Bank?
Its main purpose is to improve access to agricultural machinery, particularly for small and marginal farmers.
3. What machinery can I hire?
You can hire equipment like tractors, power tillers, rotavators, seeders, planters, sprayers, threshers, harvesters, etc.
4. How much does it cost to hire farm machinery?
The cost of hiring farm machinery depends on the terms with the relevant service provider.
5. Is a Farm Machinery Bank the same as a Custom Hiring Centre?
Farm Machinery Bank is a facility where farmers can rent farm machinery and equipment. Its main purpose is to provide machinery at an affordable cost. Custom Hiring Centre main purpose is to provide machinery to farmers without requiring them to buy it.
6. Who can establish a Farm Machinery Bank?
Government provisions have included several entities such as cooperative societies, registered farmer societies, FPOs, SHGs, and Panchayats to establish a Farm Machinery Bank.
7. Can a Farm Machinery Bank create employment?
Yes. The Government has specifically noted that FMBs can create work opportunities for skilled labor and small artisans by engaging them as machinery operators and mechanics.
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