Market Trends of Tractor Rental Industry
This section covers the major market trends shaping the Tractor Rental Market according to our research experts:
Increase in Online Rental Services is driving the Market
Purchasing any farming machinery always requires a huge amount of money and in addition to that, it needs maintenance but in the case of renting there is no hassle of any maintenance
The tractor rental market has created the best solution for the middle-class farmers' who can't afford and maintain the tractor as now they can rent a vast variety of tractors on basis of location, type, feature, and duration. Farmease one of the leading rental service providers in the United States connects the farmers to share their spare farm machinery with needy farmers who can't afford the machinery. Tractor owners can earn from their tractor which adds a second income source to them, and on the renter's front, they get access to the tractor on demand by that they get the latest technology at affordable prices according to the need. Major rental service providers are tapping into the unexplored market as the developing countries have huge potential for tractor rental as compared to matured markets such as North America and Europe.
For instance, In May 2021, as part of its contribution to COVID-19 relief measures, Tractors and Farm Equipment Ltd (TAFE) offered 16,500 tractors under a free rental scheme for farmers in Tamil Nadu who own agricultural land of two acres or less. The scheme is intended to benefit approximately 50,000 farmers and will cover approximately 1.20 lakh acres of agricultural land. According to a company statement, TAFE would offer its 16,500 Massey Ferguson and Eicher tractors to small farmers with two acres or less.
In April 2021, Tractor Supply's mobile app has surpassed 1 million downloads in less than a year. According to Lawton, the app has become a "material portion" of Tractor Supply's digital sales, with customers able to schedule their buy online, and pick up in-store orders there. BOPIS accounts for approximately 75% of the retailer's digital sales, with 75% of those orders being for curbside pickup.
In 2018, Aeris, the United States-based technology company is coming together with Hello Tractor, an agriculture technology company that has previously worked with farmers in Nigeria and Kenya, to launch a tractor rental service in India.
Asia Pacific is Expected to grow at the fastest rate in Tractor Rental Market
One of the key factors for the growth of the Asia-Pacific tractor rental market is to provide the best technology and reduce the financial burden on farmers. Renting a tractor allows the farmers to cultivate their crops on time without investing large sums of money on tractors, it also provides them a convenient way of enhancing their operations.
In India, According to the survey by the National Bank For Agriculture and Rural Development (NABARD), there is a very low penetration of farm machinery. In NABARD All-India Rural Financial Inclusion Survey (NAFIS) just 5.2% of agricultural households have a tractor and just 1.8% owned a power tiller.
- In January 2022, The Tamil Nadu government announced a number of schemes, including an e-Wadgai for farmers and a mobile app for renting farm equipment. E-Vadagai is a mobile app that allows Indian farmers in Tamil Nadu to rent farm equipment without having to visit farm offices. They can also use the app to learn more about device rentals and terms of service. The new scheme will provide a total subsidy of Rs 50.73 crore for 2,118 different types of agricultural machinery.
- In April 2020, TAFE, announced a free tractor rental scheme in Uttar Pradesh, India through its JFarm platform, for 90 days duration. This initiative of TAFE is announced under its CSR in which the company will offer 3,000 tractors on a free rental basis to reduce the impact of COVID-19 on small farmers.
