The Ploughing Tractor Business Guide

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Do you know the rate of agricultural mechanization has been rising among the small and medium farmers?

Find out the dynamics of the Ploughing Tractor business in this [B]Tractor Factsheet : Financial Figures and Market Facts

About the tractor ploughing business:
Model:[/B] Farmers hire tractor from you to plough their farms. Pay on the go.
Market Entry : Brokers, Partnerships with agricultural mechanization NGOs, Various Ubers for tractors.
Opportunity :Increasing mechanization among small and medium scale
farmers. Cheaper than manual labor.
Opportunity : Bridging the gap between supply & demand; A farmer needs a tractor but there is a tractor sitting idle a few kilometers away.
Trends - Aggregating of ploughing activities. Small scale equipment. Increased interest by
NGOs and some major private businesses.
Technology; Uber for tractors?
Involvement : Can delegate. Monitoring trackers.
Major Equipment : Tractor & Plough
Availability : Local

Included in The Ploughing Tractor Financial Figures
[ul]
[li]Equipment - Item Details Cost (Kshs.)[/li][li]Insurance & Licenses - Item Details Cost (Kshs.)[/li][li]Working Capital - Item, Details, Cots [/li][li]Total Startup Capital [/li][li]Projections[/li][/ul]
Key Figures:

[ul]
[li]Ploughing Fee (Ksh.) - Amount charged to farmer for ploughing an acre of land.[/li][li]Broker Fee (Ksh.) - Amount per acre charged to tractor owner for linking tractor owner with farmer.[/li][li]Driver Fee (Kshs.) - Amount , per acre, paid to the tractor driver.[/li][li]Ploughing Fuel (L) - Quantity of fuel, in Litres per acre that the tractor consumes.[/li][li]Site Fuel (L) - Quantity of fuel, in litres per day, that the tractor consumes to and from land.[/li][li]Maintenance Cost (Kshs.) - Cost, per acre, of maintaining the vehicle.[/li][li]Monthly Standard Maintenance (Kshs.) - Fixed maintenance costs. Could include washing, parking and such.[/li][li]Miscellaneous Costs (Kshs.) - Other running costs per acre.[/li][li]Maximum Acreage - Maximum acreage that the tractor can plough in a day of 12 hours[/li][li]Monthly Operational Days - Maximum no of days the tractor works in a month[/li][li]Annual Operational Months - Maximum no of months the tractor is active in a year[/li][li]Cost of Fuel (Kshs.) - Maximum cost of diesel[/li][li]Days receivable on Revenue - Time, in days, to receive payments from farmer, pay driver and all other expenses[/li][/ul]

Monthly Scenario
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[li]Acres Per Day[/li][li]No. of Days [/li][li]Total Acres per month[/li][/ul]

Income Scenarios
Total Revenue

Expenses

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[li]Direct Ploughing Expenses[/li][li]Driver Fee (Driver Rate * No of acres) - ?[/li][li]Broker Fee (Broker Rate* No of acres) - ?[/li][li]Total Fuel (Rate per acre * Fuel rate*Total acres) - ?[/li][li]Maintenance Cost (Maintenance Rate * No of acres) - ?[/li][/ul]
Gross Profit
Other Operational Expenses

[ul]
[li]Site Fuel( Rate per day * Fuel rate* No of days) [/li][li]Monthly Standard Maintenance Costs [/li][li]Miscellaneous ( Miscellaneous Rate* No. of acres) [/li][/ul]

Monthly Net Income ( Gross Income- Other Expenses)

Acres Required for Different Gross Revenue
20,000 - ?
50,000 - ?
80,000 - ?
100,000 - ?
120,000 - ?
150,000 - ?
180,000 - ?
200,000 - ?
250,000 - ?
300,000 - ?
350,000 - ?
400,000 - ?
500,000 - ?
700,000 - ?

Year Scenarios – Year 1 & 2
Key figures and random observations

This detailed analysis is available @ Kshs.699.

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Regards,

[B]Crack A Business Kenya[/B]

www.kenyaknowhow.com

0712473455
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