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D-mechanisation-as-a-service Dictionary

Mechanisation as a service

Hiring machinery by the hour or hectare instead of owning it

All termsIntroduced in Module 3Open the Toolkit
An open dictionary on a farm office desk
Plain meaning
Hiring machinery by the hour or hectare instead of owning it
How to use it
Price hired tillage, planting and harvesting per hectare and compare it with the full cost of owning a machine, including depreciation and idle time.
South African benchmark
South African contractors offer harvesting and spraying by the hectare (Article 15).
Country notes
Tractor-hire services are common in all four local markets but are scarce at peak planting time, so booking early matters.
Go and read
C3 Lesson 3.2
Calculate it
No calculator; the term is applied in the venture plan narrative.
Library sources
LIB-A015, LIB-A140
See also
Depreciation, Capacity utilisation, Payback period
Bar diagram of break-even yield, yield achieved and yield achievable, showing the yield gapThe yield gap on one hectareBreak-even yieldcovers all costsYield achievedwhat the farm gets nowYield achievablebest practice on this landBreak-even lineYield gap= money leftin the field
From Module 3, Productivity Economics, where this term is introduced.

Introduced in C3 Productivity Economics.