TITLE:
Economic Analysis and Effect of Using Farm Machinery for Soybeans Production at Gishari Demonstration Farm, Rwanda
AUTHORS:
Aphrodis Havugimana, Leonce Harerimana, Dalson Gace, Derrick Bugenimana, Augustin Nsengimana
KEYWORDS:
Agricultural Mechanization, Traditional Farming, Propensity Score Matching, Profitability Analysis, Benefits Cost Ratio
JOURNAL NAME:
Open Journal of Applied Sciences,
Vol.15 No.6,
June
30,
2025
ABSTRACT: This study examines the economic viability of mechanized versus traditional soybean farming at Gishari Demonstration Farm in Rwanda, addressing critical gaps in understanding the financial and productivity impacts of farm machinery adoption in smallholder contexts. Despite global advancements in agricultural mechanization, small-scale farmers in Sub-Saharan Africa often face barriers such as high upfront costs, limited technical expertise, and inadequate infrastructure, which hinder adoption and scalability. The research aims to compare the profitability of mechanized and manual soybean production systems, evaluate cost-benefit trade-offs, and assess the causal impact of mechanization using robust econometric methods. Employing a mixed-methods approach, the study analyzed data from 60 plots (30 mechanized and 30 manual) during the 2023/2024 farming season. Propensity Score Matching (PSM) with Nearest Neighbor, Kernel, and Radius Matching algorithms controlled for selection bias, while t-tests compared key economic indicators. Profitability metrics included yield, gross margin, net farm income, and benefit-cost ratios. Key findings reveal that mechanized farming significantly outperforms traditional methods, with yield increases of 720 - 750 kg/ha (p