Instrument

Support machinery rings

Description

Machinery rings provide access to modern machinery, such as tractors and trailers – which is an important benefit particularly for smaller farmers. The machines are owned by the machinery ring members and shared against payment of a fee. As machines such as harvesters, spreaders and sprayers are extremely costly, their shared use reduces the financial burden on the individual farmers while enabling them to benefit from innovative technology. Some larger agricultural enterprises also make use of machinery rings, since the capacity of modern machines such as combine harvesters, forage harvesters or mobile feed mixers is constantly rising and requires a certain level of machine utilisation.

Requirements

  • A properly functioning country-wide administration and monitoring system with access to the relevant information and sufficient technical and human capacities for its design, implementation and monitoring
  • Clear and coherent political strategy and targets for policy-makers and public authorities
  • Legal frameworks (laws on cooperatives, taxation, competition and voluntary associations) that support farmers’ self-help organisations and do not discriminate against other entrepreneurial joint ventures (level playing field)
  • Private sector initiative
  • Properly functioning external audit structures (e.g. via regional or national auditing associations)
  • Regulated and legally protected payment structures
  • Skilled / specialised personnel to man the respective institutions / provide the respective services

Possible Negative Effects

  • Poorly functioning audit structures could result in members losing trust in their organisation
This page was last edited on 24 October 2019 | 20:53 (CEST)
Implementation Level
  • On Site
  • Competent Authority
Required Budget
medium ($$)
Impact Horizon
  • medium
  • long
Administrative Complexity
medium
Ministries Involved
  • Agriculture, Fisheries & Forests
Trade Impact
not distorting
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