Investing in tractors can pay off

(Credit: Umar Nsubuga)

AGRIBUSINESS

Isaac Malinga is a well-known farmer in Kapchesombe, Kapchorwa district. But, he is perhaps known even more for hiring out his tractor to fellow farmers.

"It is a viable business, if you invest in it," he says.

In the area, the tractor ploughs each acre at between sh80,000 and sh150,000.

Malinga owns a tried and tested Messy Ferguson, one of the most popular tractor models. New dealers have entered the business, including those assembled at Luzira in Kampala.

According to agricultural officials, there is a big deficit of tractors in Uganda. They argue that this deficit can only be mitigated if private investors started investing in tractor hire schemes.

At the moment, the government is trying to restart the sub-county tractor hire schemes which were common in the 1960s and 1970s.

The turbulent political years of the time saw the schemes collapse. In the late 1980s, the government restarted the scheme using medium-size tractors, mainly Kubotas and Deuhz, alongside heavy-duty Messy Ferguson models.

The tractors were then spread across the country.

However, in most of the central region, owners used the tractors to ferry sand and other building materials rather than farming.

Tractors are not only durable, but also multi-purpose in use. Besides ploughing and harrowing, fitted with a trailer, a tractor can be used not only to transport farm produce, but almost for just about anything. It can also be fitted to power a grinding mill, generate electricity, pump water, etc.

"If well serviced, a tractor can last as many as 100 years," weighs in Malinga.

"Tractors are largely mechanical, and parts can therefore be fitted and removed with relative ease."

Prospective investors should realise that there is a deficit of tractors in the country.

Ideally, according to agriculturists, every agricultural sub-county should have at least three agricultural tractors. The estimated number of tractors in the country is less than 1,000, as opposed to the over 1,100 sub-counties in existence. This means that there is a deficit of around 2,200 tractors.

The cost of the tractors depends on the model. From around sh45m, you can acquire a heavyduty tractor.

Information available indicates that such a tractor can plough, on average, six acres of land a day. At sh100,000 to sh150,000 per acre, that translates into a gross income of sh600,000 a day.