Small mechanization big benefits: farmers’ willingness to pay for the two wheel tractor in the hilly areas of Pakistan

Abstract

The current study was carried out in the hilly areas of Gilgit-Baltistan and Azad Jammu and Kashmir. In some of the hilly areas, the four wheel tractor are not used due to topography and the farmers still use bullock and hand implements for land preparation. For the current study, data were collected from the farmers by using a comprehensive questionnaire. The farmers willing to pay for the two wheel tractor indicates that farmers having higher education, secured land rights and owns higher household assets are normally willing to pay more for the two wheel tractors. Moreover, the farmers were willing to pay more for the imported tractors as compared to the local manufactured tractors. The farmers were willing to pay more the two wheel tractors if the implements can be drawn with the two wheel tractor and vice versa. For sustainability, the local production of the two wheel tractors can ensure the lower prices as well as initially the subsidy from the government side can help to popularize the two wheel tractors in Pakistan.