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 Tractor Factsheet : Financial Figures and Market Facts
About the tractor ploughing business:
Model: 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
- Equipment - Item Details Cost (Kshs.)
- Insurance & Licenses - Item Details Cost (Kshs.)
- Working Capital - Item, Details, Cots
- Total Startup Capital
- Ploughing Fee (Ksh.) - Amount charged to farmer for ploughing an acre of land.
- Broker Fee (Ksh.) - Amount per acre charged to tractor owner for linking tractor owner with farmer.
- Driver Fee (Kshs.) - Amount , per acre, paid to the tractor driver.
- Ploughing Fuel (L) - Quantity of fuel, in Litres per acre that the tractor consumes.
- Site Fuel (L) - Quantity of fuel, in litres per day, that the tractor consumes to and from land.
- Maintenance Cost (Kshs.) - Cost, per acre, of maintaining the vehicle.
- Monthly Standard Maintenance (Kshs.) - Fixed maintenance costs. Could include washing, parking and such.
- Miscellaneous Costs (Kshs.) - Other running costs per acre.
- Maximum Acreage - Maximum acreage that the tractor can plough in a day of 12 hours
- Monthly Operational Days - Maximum no of days the tractor works in a month
- Annual Operational Months - Maximum no of months the tractor is active in a year
- Cost of Fuel (Kshs.) - Maximum cost of diesel
- Days receivable on Revenue - Time, in days, to receive payments from farmer, pay driver and all other expenses
- Acres Per Day
- No. of Days
- Total Acres per month
- Direct Ploughing Expenses
- Driver Fee (Driver Rate * No of acres) - ?
- Broker Fee (Broker Rate* No of acres) - ?
- Total Fuel (Rate per acre * Fuel rate*Total acres) - ?
- Maintenance Cost (Maintenance Rate * No of acres) - ?
Other Operational Expenses
- Site Fuel( Rate per day * Fuel rate* No of days)
- Monthly Standard Maintenance Costs
- Miscellaneous ( Miscellaneous Rate* No. of acres)
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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