Custom Hiring Centres: Can Small Farmers Access Machines Without Buying Them?

Buying a tractor, rotavator, seed drill or harvester can be difficult for farmers with small landholdings. The machine may be useful for only a few days in a season, while the farmer still has to pay for purchase, maintenance, fuel and storage. Custom Hiring Centres offer another option.

A Custom Hiring Centre, or CHC, is a facility where farmers can hire agricultural machinery and equipment for specific farm operations. Instead of owning every machine, farmers pay to use the equipment when they need it. The model can make mechanisation more accessible to small and marginal farmers.

The government reported that 27,554 Custom Hiring Centres had been established between 2014–15 and 2025–26. The centres are supported under the Sub-Mission on Agricultural Mechanization, which aims to expand access to machinery among small and marginal farmers.

How Custom Hiring Centres Work

A CHC keeps a group of agricultural machines that farmers can hire. Depending on the centre, equipment may include tractors, rotavators, seeders, planters, sprayers, threshers, harvesters and machines for residue management.

Farmers can hire a machine for a particular operation rather than purchasing it. For example, a farmer may need a seed drill for one day during sowing and a thresher after harvest. Hiring allows the farmer to access both without owning them throughout the year.

The cost of hiring varies according to the machine, operation, location and duration. Farmers should ask the centre for the complete rate before booking equipment, including any transport or operator charges that may apply.

The model is particularly relevant where farms are small and machinery remains unused for long periods. A farmer cultivating a few acres may find it difficult to recover the cost of purchasing a specialised machine. Shared access spreads the use of equipment across several farms.

The government provides financial assistance under SMAM for machinery purchases and for setting up Custom Hiring Centres. Assistance for eligible agricultural machinery can range from 40% to 50% of the cost, while eligible CHC projects can receive assistance of 40% of project cost up to the prescribed limit.

What Machines Can Farmers Hire?

The equipment available depends on the centre and local farming needs. A centre in a rice-growing area may focus on transplanters, harvesters and threshers, while one serving wheat and pulse farmers may stock seed drills, rotavators and harvesting equipment.

Farmers can also find machinery for operations that require precise timing. Sowing, planting and harvesting often need to happen within a short period. If labour is unavailable during that window, access to machinery can help farmers complete the work on time.

Some CHCs also provide equipment for crop-residue management. This can include machines that help farmers manage residues after harvesting instead of burning them. Proper residue management can return organic matter to the soil and reduce air pollution caused by field burning.

ICAR-IIMR opened a Custom Hiring Centre at a Farmer Producer Organisation in Telangana in February 2026. The facility was designed to give small and marginal farmers collective access to machinery and was expected to benefit around 500–700 member farmers in its initial phase.

The centre also linked machinery access with scientific advisory services. Farmers could receive information on crop planning, pest and disease management, weather advisories and markets alongside access to farm equipment. This combines machinery access with information that can help farmers decide when and how to use it.

Can Hiring Reduce Farm Costs?

Hiring can reduce the amount of capital a farmer needs to invest at the beginning of the season. Instead of borrowing money to purchase a machine, the farmer pays for the specific service required.

The actual saving depends on the local hiring rate and how frequently the farmer needs the machine. A farmer who uses a machine many times each season may eventually find ownership more suitable, while another farmer may save money by hiring.

Farmers should compare the total cost of ownership with the cost of hiring. Ownership includes the purchase price, interest on a loan, repairs, fuel, insurance, storage and depreciation. Hiring mainly shifts the cost to the period when the machine is actually needed.

A group of farmers can also approach a CHC together. If several farmers need the same machine around the same time, they can coordinate bookings and reduce delays. This can be particularly useful during short sowing and harvesting windows.

The government has promoted CHCs partly because fragmented landholdings make individual ownership difficult. The policy aims to overcome the high cost of machinery for small farms by making machines available through shared access.

Why Timing Matters

A machine can save money only if it arrives when the crop needs it. Delayed sowing or harvesting can affect crop performance, especially when rainfall or temperature conditions change quickly.

Climate variability makes this timing more important. A sudden rainfall event can delay field preparation, while a dry spell can shorten the suitable sowing window. Access to machinery through a local centre can help farmers respond when field operations need to be completed quickly.

ICAR research has also linked custom hiring with climate-smart mechanisation. Shared machinery can help farmers access equipment that improves resource use without requiring every farmer to purchase separate machines.

Farmers should book machinery early when demand is likely to be high. Waiting until the last moment can create shortages because several farmers may need the same equipment during the same few days.

It is also important to check the machine before hiring it. Farmers should confirm whether the equipment is suitable for their crop, field size and soil condition. A machine designed for one operation may not perform well under different field conditions.

How Farmers Can Use CHCs

Start by asking your local agriculture department, Krishi Vigyan Kendra or Farmer Producer Organisation whether a Custom Hiring Centre operates in your area. Many centres work through farmer groups, cooperatives, FPOs or government-supported programmes.

Ask for the list of available machines and hiring rates. Compare the price with the cost of doing the operation manually or hiring a private contractor. Include transport and operator charges in the calculation.

Farmers can also check whether the CHC offers the equipment needed for climate-resilient practices. Laser land levellers, direct-seeding equipment, residue-management machines and efficient irrigation equipment can support better use of water, soil and farm labour.

If a suitable CHC does not exist nearby, farmers can approach an FPO or farmer group about creating shared machinery access. Government support may be available for eligible groups under the agricultural mechanisation programme.

The idea behind a CHC is simple: farmers do not need to own every machine they use. They need reliable access to the right machine at the right time.

For small farms, this can make mechanisation more practical. Before buying expensive equipment, calculate how many days you will use it each year. If the machine spends most of the year unused, hiring may be worth considering.