Journal of Agricultural Development and Policy

The present study has been carried out to analyze the use of custom hiring services of farm machinery-in Punjab. The study has been conducted in Ludhiana and Fazilka districts of the state during 2018-19 by taking a sample of 120 farmers comprising 60 beneficiaries (availing custom hiring services) and 60 non-beneficiaries (using owned machinery). The non-beneficiaries were having more operational area as compared to beneficiaries. Paddy and wheat were the dominant crops grown by both beneficiaries and non-beneficiaries. The cost incurred by non-beneficiaries on fixed capital was around 80 per cent higher than that of beneficiaries. The beneficiaries, in spite of lower gross returns, earned relatively higher net income as compared to non-beneficiaries. Among different problems faced by the farmers in availing-custom hiring services of farm machinery, non-availability of machines in peak season, non-availability-of required machinery in cooperative societies and lack of independence in terms of efficient use of hired-machinery and high hiring charges in peak season by private custom hiring centers were the major problems-faced by the farmers. There is need to strengthen cooperative societies by providing more farm machinery to make them available to farmers at nominal charges. The private custom hiring agencies also needs to be encouraged to open more custom hiring centers in villages for proper penetration of farm machinery. Individual farmers may also be motivated and trained to form groups and establish custom hiring centers. It will also generate additional employment and help in increasing their income.