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Government Subsidy for Agricultural Machines and Equipment: Get 50 to 80%

Agricultural machinery and equipment are used to cultivate and harvest crops. People used agricultural tools to help them grow and harvest crops from ancient times. They used agricultural tools to keep the soil loose and fast for harvesting ripened crops. Farm machinery and equipment should be appropriate to the demands and needs of the farmer. Farmers can save money on operational costs, increase income, and grow more crops with less work by choosing the right farm machinery. Let’s check out more information about government subsidy for agricultural machines and equipment below.

Government Subsidy for Agricultural Machines and Equipment
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Focusing on agriculture machinery subsidies 

Recently, the government has provided an 80% subsidy on agriculture machinery and equipment to farmers for maintaining the stubble. The subsidy will help purchase paddy straw choppers, straw management systems, happy seedier, etc. Otherwise, the cost will be very high. In addition, the government provides subsidies through state schemes to purchase mulchers, cutters, spreaders, rotavator ploughs, etc. Similarly, the following subsidy schemes in favor of farmers owning essential machinery;

Objectives of the subsidiary schemes promoting machinery

  • To adapt to new and faster machines
  • To facilitate machine purchase
  • It helps to reduce the cultivation cost
  • Furthermore, to ensure the timeliness of cultivation timing
  • Improving the lives of farmers

To increase crop yields and productivity by cultivating in modern ways, farmers must have modern agricultural equipment to do agricultural work at the right time with advanced seeds, chemical fertilizers, pesticides, and water for irrigation. Therefore, modern agricultural equipment not only stimulates agricultural development. On the contrary, the economic condition of the farmers is also vital. In today’s time, farming, sowing, irrigation, harvesting, and storage are possible only with the help of modern farming tools.

In such cases, the central government continues to provide subsidies to the country’s farmers according to their category, who cannot purchase modern agricultural equipment. In this regard, the central government is now providing 50 to 80 percent subsidy on agricultural equipment under the SMAM scheme. 

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Modern Tractor
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Government subsidy for agricultural machines and equipment

Sub-Mission on Agricultural Mechanization (SMAM) Scheme 

The central government runs the SMAM scheme to provide subsidy benefits to agricultural machinery. Under this, farmers are given 50 to 80 percent subsidy on agricultural machinery. These subsidies vary from farm to machinery. By implementing this scheme of the Central Government, farmers can avail subsidy to purchase modern agricultural machinery. This SMAM scheme is available to farmers in all states. Any farmer in the country eligible for this scheme can apply for this scheme.

To empower farmers through sub-mission of the Agricultural Mechanization (SMAM) Scheme, the Government of India has provided funds for various activities of Farm Mechanization such as Custom Hiring Centers, Farm Machinery Bank, and Establishment of Hi-Tech Hubs and Distribution of Various Agricultural Machinery, etc., have been issued to different states. However, the development of sustainable agricultural mechanization will require proper and accurate agricultural machinery well-equipped with the latest technology. 

The adoption of modern machinery and equipment by farmers depends on various factors such as socio-economic conditions, geographical conditions, crop cultivation, irrigation facilities, etc. To promote agricultural mechanization in the country, a centrally sponsored scheme ‘Sub Mission on Agricultural Mechanization (SMAM), is being implemented by the state governments. SMAM seeks to help small and disadvantaged farmers by setting up centers that assist in purchasing equipment.

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Modern Irrigation Tech
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Moreover, this initiative is in every state of the country. In addition, the scheme encourages farm machinery training and testing institutes (FMTTIs), financial assistance, and farm machinery. Mechanization also helps in improving the efficiency of utilization of other inputs, so it is considered one of the essential parts of the agriculture sector to increase the income of farmers and the development of the agricultural economy.

The Sub-Mission on Agricultural Mechanization (SMAM) has been introduced to promote ‘Custom Hiring Centers’ and Hi-tech Hubs of High-Value Machines.’ Meeting the scale of adverse economies created by small and fragmented land and the high value of individual property; raising awareness among stakeholders through demonstrations and capacity building activities; and ensuring performance testing and certification of agricultural machinery at specialized testing centers located across the country. 

  • Promotion of agricultural mechanization by using training, testing, and demonstration – It aims to test the performance of farm equipment, increase farmers’ capacity, and promote farm mechanization. 
  • Training, Demonstration, and Distribution of Post-Harvest Technology and Management (PHTM) – It aims to popularize technology for demonstration processing, value addition, low-cost scientific storage/transport, and crop by-product management through demonstrations, farmers, and end-users. To increase the efficiency of providing financial support for establishing PHT units. 
  • Financing for purchasing agricultural machinery and equipment – Promotes ownership of various farm machinery and equipment as per norms of assistance. 
  • Establish a Farm Machinery Bank for Custom Hiring – Provides adequate financial support to establish a Farm Machinery Bank for Custom Hiring for suitable locations and crops. 
50% subsidy is provided for buying agriculture machines

The SMAM scheme provides financial assistance of 40% to 50% depending on the category of farmers to purchase agricultural machinery to make machines and equipment cheaper for the farmers. In addition, rural youth and farmers as entrepreneurs, farmers ‘cooperative societies, registered farmers’ societies, farmer producer organizations (FPOs), and panchayats were given financial assistance at 40% of the project cost for setting up Custom Hiring Centers (CHCs) and high-tech hubs for high-value agricultural machinery. 

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The central government has launched the SMAM scheme. Under this, any farmer can avail of the subsidy given by the government for purchasing equipment. Under this scheme, farmers get a 50 to 80 percent subsidy from the central government for purchasing modern farming equipment.

Eligibility / Conditions for SMAM Scheme 
  • Any farmer in the country can benefit from this scheme. 
  • The farmer must be a resident of India for applying this scheme. 
  • Women farmers can also benefit from this scheme, and they will be given priority in this scheme. 

The central government will benefit from this scheme for the financially weak farmers. In addition, tIn addition, the scheme will help farmers who have not availed of a subsidy from any other central scheme before. 

How much subsidy will be given in the SMAM agricultural scheme?

Under the central government’s SMAM scheme, farmers are given 50 to 80 percent subsidy on purchasing agricultural machinery. In addition, farmers belonging to Scheduled Castes and Scheduled Tribes are also given the benefit of subsidy on a priority basis. The objective of this SMAM scheme is to provide agricultural machinery to poor and economically weak farmers. Therefore, the government gives this subsidy. 

Documents required for application in the SMAM scheme 

To apply for the benefit of subsidy on agricultural machinery in the SMAM scheme, farmers will need some important documents, which are as below;

  • Farmer’s Aadhaar card
  • Applicant’s residence certificate
  • Identity Card 
  • Farm Papers
  • Farmer’s bank passbook 
  • Applicant farmer’s mobile number is linked to Aadhaar
  • The applicant’s proof of identity (Aadhar Card / Driver’s License / Voter’s I Card / PAN Card / Passport) can be attached to one of them
  • Caste certificate 
  • Passport size photo of the farmer

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Modern Agriculture
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How to apply for subsidy in the SMAM scheme

To avail of the benefits of the small farmer scheme, farmers have to apply online. The below procedure is helpful to apply for this subsidy. 

  • Firstly, visit the official website of the SMAM Scheme. 
  • Here you will see the registration option, in which click on the previous option, and after that, a new page will open. 
  • In this form, fill information like name, district mobile number, email id, etc. 
  • After completing all the information correctly, you have to click on submit button. 
  • Thus, submitting your application for subsidy on devices under the SMAM scheme will be completed.

Farm Machinery Banks

About 80% subsidy is given to set up Farm Machinery Banks (FMBs) at the village level. Also, financial assistance for up to 80% of the project cost for projects costing up to Rs. 10 lakhs are given to Registered Farmers Societies, Cooperative Societies, FPOs, and Panchayats to set up Farm Machinery Banks (FMBs) at the village level. The rate of financing for the North Eastern States to establish FMBs is 95% of the project cost for projects costing up to Rs. 10 lakhs. Machinery banks will be set up through farmer groups, and agricultural machines will be leased to nearby farmers through these groups. 

The government will provide an 80% subsidy for agricultural machinery banks with a maximum limit of Rs. 10 lakhs. In addition, theIn addition, the Department of Agriculture has launched a sub-mission on the Agricultural Mechanization Scheme. Under this, four beneficiaries have been targeted to set up Farm Machinery Bank in the Banda district. 

Under the scheme, one tractor (5 lakhs), one power tiller (70 thousand), one rotavator (1.20 lakhs), two seed drills (60 thousand), one power spare (25 thousand), one drum seeder (8 thousand), one multi-thresher (50,000), irrigation pipe 100 meters (90,000), two pump sets (70,000).

Required document for Farm Machinery Bank Yojana
  • Aadhaar card 
  • Ration card 
  • Passport size photo
  • Copy of machinery bill
  • Bank account passbook
  • Residence certificate 
  • Age certificate 
  • Caste certificate 
Eligibility certificate of Farm Machinery Bank scheme
  • Make sure the applicant must be a permanent resident of India. 
  • The beneficiary must be a resident of his district and block under 50 years of age. 
  • Agricultural graduates will be preferred. 
  • The beneficiary should have his land in his name.

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Money INR
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Key features of the scheme
  • Self Help Groups / Farmers Consumer Groups, Cooperative Societies / Farmers Producers Associations, and Groups of at least eight farmers will be able to avail the benefits of this scheme. 
  • 30% will be female, 50% small frontier, 16% scheduled castes, and 8% listed tribal farmers. 
  • Up to 10 lakhs devices can be kept under the Farm Machinery Scheme. 
  • About 80% of the grant is payable. 20% of the amount can be deposited by the farmer group or through a bank loan. 
  • Beneficiaries will have to bear at least 10% of the cost. Ten percent will be borrowed from the bank. The grant will be disbursed based on a subsidy attached to the Government of India’s Credit Linked Bank. 

PM Kisan Samman Yojana – 80% subsidy will be available on the purchase of agricultural equipment 

Farmers are the food suppliers of our country and grow grains with their hard work. Similarly, the farmer works hard to produce grain. The impact of rising inflation is now being felt in agriculture as well. Agricultural equipment has become expensive, so the poor farmers are still forced to cultivate in the old ways. Farmers will be given a subsidy for purchasing agricultural equipment. Under this scheme, farmers will get up to 80% subsidy on farming equipment. 

Benefits of this scheme 
  • The scheme will help the farmers to purchase agricultural equipment. 
  • With the help of good equipment, production will increase, and income will also increase. 
  • The farmer will benefit from this scheme only after considering his economic condition. 
Required documents 
  • Applicant ID card (Aadhar Card, Voter ID Card, Driving License, PAN Card) 
  • Proof of address 
  • Copy of bank passbook 
  • Land papers
  • Caste certificate 
  • Passport size photo


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