This chapter has presented available evidence for the business case for various automation technologies. The business case for agricultural motorized mechanization is well established, given the benefits in terms of, inter alia, substantial cost savings due to reductions in labour use, timely performing of agricultural operations, reduced drudgery, expansion and intensification of agricultural production, and increased resilience to climate and health shocks. In addition, mechanization has contributed to freeing up family labour of agricultural households, enabling household members to allocate time away from agriculture to pursue off-farm work that can enhance their livelihoods.
Over the coming decade, mechanization is still likely to play an important role in the agricultural transformation of countries where adoption has been slow – particularly in sub-Saharan Africa – but it must be tailored to local needs through strategies based on careful assessment of the demand. Various types and sizes of machinery are available for different topographic and agroclimatic zones, capable of meeting the needs of small-scale producers. Technological solutions such as small four-wheel tractors and two-wheel tractors – as well as the wider range of small agricultural machines, which are more agrobiodiversity friendly for food and agriculture – can be part of the picture where adoption is still low.
In spite of the potential, mechanization is still lagging in many parts of the world due to structural factors, such as poor infrastructure, and lack of technical skills and a conducive business environment. Many areas and socioeconomic groups are still without access to mechanization, due to either financial constraints or limiting structural factors, such as restrictive policies or inadequate infrastructure. More policy support is needed for public or collective goods through general services support (GSS). This includes fostering agricultural research and development, together with knowledge transfer services (e.g. training and technical assistance), and supporting infrastructure development and maintenance (e.g. improving rural roads, irrigation systems, storage infrastructure). Both these GSS entry points can support an enabling environment for automation without distorting market incentives, and they are often necessary to make a viable business case for automation, especially in low- and middle-income countries.90
In contrast, digital automation technologies – in particular crop robots and digital automation of aquaculture – are still in the early stages of development and commercialization, and the economic impacts on agricultural producers are still speculative. Livestock precision agriculture, on the other hand, is in a more mature phase, although still concentrated in high-income countries. Other technologies, such as disembodied digital solutions, active UAS and remote sensing, mechanization solutions with GNSS and VRT, and solutions for protected cultivation, are scaling. However, based on the 27 worldwide case studies discussed in this chapter, these technologies have so far proven they are profitable only in high-income countries and for large-scale producers. Clearly, more evidence related to the benefits and costs is needed to better understand which technologies can be tailored to different conditions.
As in the case of mechanization, structural factors – including lack of connectivity, electricity, digital literacy and awareness of potential – affect the business case for digital automation technologies. Evidence from both the literature and the case studies suggests that young farmers are instrumental in transformation of the family farming business towards digitalization and advanced automation. Other important factors shaping adoption are increased competition from international markets, lack of sufficient labour, and the potential to reduce drudgery and improve working conditions. In a few instances, the digital platforms that enable access to mechanization services also help women overcome social bias against them and improve their access to services (see Chapter 4).
Digital tools are also changing the landscape of mechanization by expanding rental machinery markets, thanks to substantial reductions in transaction costs. Furthermore, certain digital automation technologies have the potential to reverse some of the negative environmental trends resulting from past mechanization. To address these challenges, it is necessary to tailor innovations in motorized mechanization to smaller and lighter machinery that can reduce soil compaction and mitigate negative environmental impacts. Applied technical and agronomic research can help to explore mechanization solutions that best fit local agroecological conditions.
This chapter has also introduced the role of public policies, legislation, investments and innovations in addressing structural barriers to adoption, and tailoring interventions to small-scale producers and environmental concerns. A more in-depth discussion on the social impacts of automation and the role of public policies follows in Chapters 4 and 5, respectively.
