Want to buy a tractor and implements and rent them to farmers. Is there subsidy.
Can I start a farm machinery rental business as a custom hiring centre?
GGurpreet Dhillon1yr ago · 332 views
6 Answers
🌾Farmer.in Krishi TeamExpert ✓1yr ago
Yes, running a Custom Hiring Centre (CHC) or renting farm machinery as a service is a viable agri-business, especially where small farmers cannot afford their own equipment. You provide tractors, rotavators, seed drills, harvesters, balers and sprayers on hourly or per-acre rates. Under the Sub-Mission on Agricultural Mechanization (SMAM), individual farmers, FPOs, cooperatives and entrepreneurs can get subsidy on machinery and on setting up CHCs and hi-tech hubs; rates differ by category and state (often 40% to 80% on machines, higher for SC/ST and small farmers). FPOs can also use the Agriculture Infrastructure Fund for CHC assets with 3% interest subvention. Demand is seasonal, so plan a mix of implements and bookings. Apply through your state agriculture department or the SMAM/CHC apps. Confirm current subsidy norms.
HHardeep Brar1yr ago
The big risk is that demand is very seasonal. Everyone wants the harvester or seed drill in the same two weeks and then the machines sit idle for months while the loan EMI keeps running. Keep a mix of implements used at different times and try to serve a wide enough area to stay busy.
MManpreet Sandhu11mo ago
Buy versus hire your own first: before starting a CHC, see if it is cheaper to just hire machines yourself when needed. Running a CHC is a real business with maintenance, fuel, an operator's wage and breakdowns. We made it work only by adding paddy straw baler service, which had strong demand under the stubble burning rules in Punjab.
JJagtar Singh11mo ago
Maintenance and a reliable operator decide your profit. A broken down machine during the peak fortnight means lost income and an angry customer. Budget for spares, servicing and a skilled driver. Also collect payment terms clearly upfront, chasing dues after the season is hard.
BBaljinder Kaur11mo ago
On income range, do not assume the showroom or subsidy agent's rosy projection. Real earnings depend on how many acres you actually cover and your fuel and repair costs. Some CHCs do well, others barely cover the EMI. Talk to an existing CHC operator near you and verify current SMAM subsidy rates with the agriculture department before borrowing.
GGursewak Singh11mo ago
An FPO route can be smarter than going solo. As a group we got better subsidy, used the AIF interest subvention, and our own members were the first customers, so the machines were never fully idle. If you have a farmer group nearby, consider a shared CHC instead of taking the whole loan on yourself.