SMALLHOLDERS

Agricultural mechanization is one of the key processes that will affect the future of smallholder farming systems in Asian countries,

Agriculture being major source of livelihood and employment in Nepal, and is effected by low productivity, traditional farming practice and lack of connectivity with markets. Fragmented landholding with limited access to market and knowledge to sell its produce results in slow progress. Promotion of contract farming would lead to improved access to technology, markets and credit, reducing transaction costs and increasing efficiency in production and marketing. This would enable small scale enterprises to mitigate risks while creating a climate for entrepreneurship.  Contract farming in fact has the potential to reduce poverty by raising farmers’ incomes.