The boost from loans for agricultural machinery investment in Nghe An.

(Baonghean) - The policy of supporting the purchase of machinery for agricultural production is considered one of the important "boosts" in introducing mechanization into production, promoting the effectiveness of land consolidation and accumulation in agricultural production. However, the supported capital only meets a very small part of the needs of the people and localities.

Each year, Do Luong district restructures approximately 15,000 hectares of rice fields. To date, only 11 hamlets in 6 communes in the district have not yet completed land consolidation. The consolidation of rice fields into larger plots and the investment in the construction of internal irrigation and transportation systems are very favorable conditions for introducing mechanization into production. “Given the increasingly complex weather patterns today, introducing machinery to shorten the time and meet the planting season is extremely necessary. However, while the demand is very high, Do Luong only receives an average of about 300 million VND in support each year, meeting only about 1/10 of the actual need. In my opinion, the province should not distribute this support to districts on an average basis, but should prioritize lowland districts with large areas of agricultural land,” shared Mr. Nguyen Cong Chau, Vice Chairman of the People's Committee of Do Luong district.

Field leveling and construction of an internal irrigation and transportation system in Xuan Hoa (Nam Dan).

Although he hasn't received any financial support yet, Mr. Vuong Dinh Trung (Dong Luu hamlet, Nam Thanh commune, Yen Thanh district) has already used his 610 million VND combine harvester to "exploit" the spring crop, earning over 100 million VND. After a week of hard work in Yen Thanh, at the end of the season, Mr. Trung took the machine to other districts and northern provinces such as Thanh Hoa, Nam Dinh, and Ninh Binh… “I spend 3-4 days in each province, including Yen Thanh, so I'm away for more than a month before returning. If I continue like this, I'll recoup my investment in about 3 years. Whether I receive support or not, I'll still buy it to make a living,” Mr. Trung said.

Yen Thanh district currently has over 20 combine harvesters and over 1,000 small tillage machines, meeting 90% of tillage and 60% of harvesting needs. In addition, farmers also use the machines for services in other localities within the province, and even in northern provinces such as Thanh Hoa, Ninh Binh, Nam Dinh, and Thai Binh… Previously, each harvest and planting season took about 20 days, but now it has been shortened to only about 10 days, helping to keep up with the planting season; the cost of renting machines is also much cheaper than hiring labor; and it helps reduce agricultural labor, allowing it to shift to other occupations and creating conditions for intensive farming investment. However, according to Mr. Nguyen Van Duong (Head of the District Agriculture Department), the 400 million VND allocated in 2015 only met a portion of the people's needs; the more than 20 combine harvesters only met about 30% of the local demand, and more machines have to be rented from other areas. At the same time, additional support policies are needed to continue improving farmland and upgrading the inland irrigation and transportation systems.

Demonstration of rice transplanter in Hung Thang commune (Hung Nguyen district)

Starting to supply agricultural machinery to farmers under the provincial support policy in 1999 according to Decision 05, the Nghe An Agricultural Machinery and Rural Development Joint Stock Company initially mainly sold small multi-functional plows, with interest rate subsidies from the province. Mr. Nguyen Hong Son, the company's director, said: "Previously, farmers mainly bought small multi-functional plows and milling machines, but in recent years, they have shifted to selling more combine harvesters, threshing machines, and large-capacity multi-functional plows."

The policy of supporting the purchase of agricultural machinery has been in place since 1999-2000, but it has only recently become a widespread movement. The results of land consolidation and exchange are one of the important prerequisites for this policy to quickly become effective. With initial support levels of 15% for multi-functional plows (lowland districts) and 20% for mountainous districts; 20% for combine harvesters, plus 100% interest rate support for the first 24 months and 50% for the following 12 months, this policy has created strong changes in introducing mechanization into the fields. It contributes to freeing up labor, reducing production costs, and increasing income; and partially addresses the shortage of agricultural labor during the harvest season.

Land preparation using machinery in Xuan Hoa commune (Nam Dan district)

However, according to Mr. Ho Ngoc Sy, Director of the Department of Agriculture and Rural Development, despite achieving positive results, it must be acknowledged that the application of mechanization in agricultural production in our province is currently limited to land preparation and harvesting in crop cultivation. The internal irrigation and transportation systems are still inadequate. Repair and maintenance services for agricultural machinery and equipment are virtually non-existent; farmers lack capital, and cooperation among households is not yet high…

Rice harvesting using combine harvesters in Hung Thong commune (Hung Nguyen district).

Mr. Phan Duy Thieu, Deputy Head of the Planning and Finance Department of the Department of Agriculture and Rural Development, stated that in the three years of 2012, 2013, and 2014, the provincial budget allocated 25.26 billion VND to this program, with an initial plan of 4.9 billion VND for 2015. Currently, the Department of Agriculture and Rural Development, in collaboration with the Department of Finance, is submitting a proposal to the Provincial People's Committee for consideration and additional support. However, given the current budget constraints, localities and individuals should not place excessive expectations on the program. The province is currently allowing localities to balance unused funds from other programs, such as funding for large-scale model fields and the use of plastic sheeting for winter peanut cultivation, to transfer to the program supporting the purchase of machinery. However, this policy only provides support within the limits of available budget resources. Districts must develop plans and allocate targets to each commune based on the actual production area and the number of machines already in operation. Strengthen propaganda and training on the use of mechanization in production. At the same time, continue to promote the construction and upgrading of inland irrigation and transportation systems, and improve and develop agricultural fields.

Phu Huong