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Product as Service, necessary equipment for cultivating the agricultural land
Published on 19 January 2021
Romania
Nord-Vest
This is the good practice's implementation level. It can be national, regional or local.
About this good practice
The landowners do not have the possibility to own all the necessary equipment and they look for the most complete services for cultivating their land.
In Maramures County - Romania, the owners own small areas of land starting from 0.29 ha and they do not want to rent, but they want to work their land. This situation has led to the need to use agricultural machinery as services,that being an example of offering Products as services – a component of the circular economy.
A small company from Maramures - A&C Ferma Agricola LTD owns the necessary equipment for agricultural activities and offers full packages of agricultural works for establishment, maintenance and harvesting of agricultural crops, including providing the necessary inputs (seeds, fertilizers, herbicides and phytosanitary products).
The company purchased over 15 machineries equipped with agricultural accessories and, based on collaboration contracts with beneficiaries, performs the necessary works: plowing, disking, milling, sowing, herbicide, fertilizing, harvesting.
The beneficiaries are individuals and legal entities who need these services, companies providing inputs.
This new approach of agro services is very helpful for the rural areas, contributing to the coagulation of small communities, being an example of cooperation through integrated services for working the land and the local authorities should support such initiatives in order to reduce the unused the agro lands.
In Maramures County - Romania, the owners own small areas of land starting from 0.29 ha and they do not want to rent, but they want to work their land. This situation has led to the need to use agricultural machinery as services,that being an example of offering Products as services – a component of the circular economy.
A small company from Maramures - A&C Ferma Agricola LTD owns the necessary equipment for agricultural activities and offers full packages of agricultural works for establishment, maintenance and harvesting of agricultural crops, including providing the necessary inputs (seeds, fertilizers, herbicides and phytosanitary products).
The company purchased over 15 machineries equipped with agricultural accessories and, based on collaboration contracts with beneficiaries, performs the necessary works: plowing, disking, milling, sowing, herbicide, fertilizing, harvesting.
The beneficiaries are individuals and legal entities who need these services, companies providing inputs.
This new approach of agro services is very helpful for the rural areas, contributing to the coagulation of small communities, being an example of cooperation through integrated services for working the land and the local authorities should support such initiatives in order to reduce the unused the agro lands.
Resources needed
The financial resources have been from own sources and sources resulting from the agricultural activity carried out at the begining individual, and later, by the established company.
Evidence of success
This business model started with a small tractor and equipment from domestic production. Latter, higher capacity and more efficient equipment was purchased, increasing the trust of beneficiaries. Ensuring of necessary inputs was also added, providing full services for 40 beneficiaries. 3 FTE jobs have been created.
The benefits are for both sides, because the prices of inputs, the capitalization of production, the quality of works and the increase of production are stimulating for both parties.
The benefits are for both sides, because the prices of inputs, the capitalization of production, the quality of works and the increase of production are stimulating for both parties.
Potential for learning or transfer
Setting up such activities of providing products as service has led to a larger-scale use of land, if we compare the data of ten years ago and today. The degree of using agro land has increased by over 100% and the quality of crops as well.
These activities are developed in many localities in Romania and almost 850,000 farmers submitted payment applications from EU funds.
The scalability is significant, being necessarily to correlate size of agrio land with need of specialization in land preparation, treatments, harvesing and need of high-performance equipment.
Maramures County Council included this business model in the Status Quo of Circular Economy in Maramures that will represent the base for including the circular economy as component of Maramures County Investment Strategy. This good practice on Product as service will be included among relevant factors (economic & public sectors, universities) that apply circular economy to be evaluated within the Strategy of Maramures.
These activities are developed in many localities in Romania and almost 850,000 farmers submitted payment applications from EU funds.
The scalability is significant, being necessarily to correlate size of agrio land with need of specialization in land preparation, treatments, harvesing and need of high-performance equipment.
Maramures County Council included this business model in the Status Quo of Circular Economy in Maramures that will represent the base for including the circular economy as component of Maramures County Investment Strategy. This good practice on Product as service will be included among relevant factors (economic & public sectors, universities) that apply circular economy to be evaluated within the Strategy of Maramures.
Good practice owner
You can contact the good practice owner below for more detailed information.
Organisation
A&C Ferma Agricola LTD
Romania
Nord-Vest
Contact
superior counsellor international relations