With the global population expected to reach nearly 10 billion people in 2050, the GAP Report estimates that agricultural output will need to double from 2010 levels to sustainably meet the demand for food, feed, fiber, and bioenergy.
To ensure environmental and economic sustainability, only about 10 percent of this growth can come from the availability of new lands, meaning 90 percent will need to come from increased productivity.
Increasing access to mechanization for small-scale farmers in emerging markets is a priority investment. Antiquated planting practices and reliance on manual labor lead small-scale farmers to plant late, under-cultivate, and lose income.
The COVID-19 pandemic has further intensified the need for agricultural mechanization, with shrinking local labor markets, movement restrictions of migrant and rural labor essential for farming, and negative impacts on overall food supply chains.
Globally there is an average of 200 tractors for every 100 square kilometers of arable land. With only eight tractors per 100 square kilometers of arable land compared, farmers in sub-Saharan African struggle to increase their productivity, threatening their livelihoods and food security.
John Deere’s Contribution to Accessible Technology
John Deere is acutely aware of these impacts on a network of farmers and tractor owners. To address this need, John Deere is leveraging Hello Tractor’s internet-based platform to increase productivity by unlocking pent-up demand for mechanization services.
As part of their partnership, John Deere and Hello Tractor are launching the innovative Pay As You Go (PAYG) tractor financing model for tractor ownership across Kenya, Côte d’Ivoire, Tanzania, and Nigeria.
This model will increase food production, create jobs by supporting youth and women contractors with flexible financing to buy equipment, and encourage investment by banks and other financial institutions who previously struggled with investing in agriculture due to a lack of transparency and data to make informed decisions.
Hello Tractor has entered into a partnership with Mastercard to unlock additional value for farmers and John Deere equipment owners by expanding their banking and payments infrastructure access.
John Deere’s work with Mastercard and Hello Tractor will make mechanization and financing more accessible to small-scale farmers across emerging markets and contribute significantly to a more sustainable and secure global food system.