The machinery for the farming market is a crucial component of modern agriculture since it provides farmers with the tools, they need to cultivate their land and optimize their harvests. Agriculture machinery is useful in simplifying farming processes and increase output. With machinery, farmers can minimize the number of workers on farms and lower labor expenses. There are several types of farming machinery available in the market such as tractors, plows, harvesting machines, cultivators, seedling machines, and others. Tractors are one of the most common types of farm machinery. Tractors help farmers to plow fields, move items, and perform a variety of other tasks. Plowing and cultivating equipment can also be used to prepare fields for planting by breaking up the soil and removing debris. Animal control machinery, crop fertilization machinery, and pest and disease management machinery are also other examples of farming machinery. With such a vast selection of machinery on the market, the agricultural machinery sector is always evolving, with new technologies and innovations assisting in the development of efficiency and productivity on farms across the world.
Key Drivers of the Farming Machine Market
Increasing Technological Advancements
Precision farming technology, such as GPS-guided tractors and drones, are gaining popularity, allowing farmers to increase productivity and avoid waste by focusing on specific regions of the land that require care. For instance, in March 2023, John Deere introduced new receivers, displays, and modems in its precision agriculture line up. The new G5 plus and G5 displays will have three times the processing speed. Additionally, in January 2023, the company launched the StarFire 7000 GPS receiver. Instead of using a signal from a local base unit, it is equipped with a satellite correction signal SF-RTK. The satellite capabilities provide the StarFire 7000 with horizontal, pass-to-pass precision of less than an inch. To assure precision, the device can be mounted on a tractor and also fitted to implements. To navigate fields, the receiver can employ active or passive implementation direction. Such advancements in technology further prompt farmers to utilize farming machinery that can increase their output and ease farming operations.
Growing Farm Mechanization Demand
One of the primary reasons driving the growth of the agricultural machinery market is the increasing need for farm mechanization. As the world's population grows, so does the demand for food production. Farmers are under pressure to produce more food in less time and with fewer resources as a result of this demand. Farm mechanization contributes to addressing these issues by providing farmers with improved equipment and technology that can boost production and efficiency. According to Agenda 2063's sustainable development goals, the African Union Commission (AUC) and the Food and Agriculture Organization (FAO) of the United Nations see agricultural mechanization as an immediate and necessary activity for achieving the "Zero Hunger" vision by 2025.
Government Support and Initiatives for Farmers
The government support and initiatives aimed at helping farmers across the globe is another factor propelling the market growth. Farm loan waiver plans encourage farmers to purchase agricultural equipment. Governments across the globe created numerous programs to help farmers pay off their debts and support agricultural automation. According to the Organisation for Economic Cooperation and Development's (OECD) Agricultural Policy Monitoring and Evaluation, 2019, farm policies in 53 countries—all OECD, EU countries, and 12 key emerging economies—provided an average of USD 728 billion per year in direct support to farmers from 2018 to 2020.
Additionally, the Chinese Ministry of Finance provided more than CNY 20 billion (USD 2.87 billion) in central government subsidies for the purchase of agricultural machinery in 2020. China intends to achieve 75% full automation of agriculture plowing, planting, and harvesting by 2025. The USDA also launched a number of financing initiatives, including a direct farm ownership down payment scheme. The maximum loan amount was raised from $250,000 to $300,000, while the guaranteed amount for conservation loans was raised from 75% to 80%. This has considerably aided the growth of the farm equipment industry.
Expansions and Innovations by Major Market Players
The farming machine market has significant contributors such as AGCO Corporation, Mahindra & Mahindra Ltd., Deere & Company, CNH Industrial NV, Kubota Corp., Escorts Ltd., Daedong Industrial Co. Ltd., JC Bamford Excavators Ltd., Iseki & Co. Ltd., and Lindsay Corp., among others. These players assist in the market’s growth with the launch of new products and through collaborations and investments. Some of the recent developments in the market include-
• In October 2022, John Deere launched a new series of strip-till equipment. Farmers can choose from the John Deere ST12 and ST16 Integral models, as well as the ST12, ST16, and ST18 Drawn versions, which are factory-ready to work in a variety of soil and field situations. All versions come with a range of shanks, coulters, and row spacings, allowing the farmer to tailor the tool to their specific field conditions and fertilizer delivery requirements.
• In May 2022, TAFE, the world's third-largest tractor maker, introduced the Eicher Prima G3 Series, a new line of luxury tractors with 40-60 horsepower for Indian farmers. The new series has an aerodynamic hood and a grille with high intensity 3D cooling technology. It has a high torque-fuel-saving liquid-cooled engine and a multispeed PTO, making it suitable for a variety of agricultural and commercial applications.