Nicaragua - Technical report on Farm Mechanization Project

/a/ A / / L1 24fr-h REST RIT rDF.n This report is restricted to use within the Bank. INTERNATIONAL BANK FOR RECONSTRUJCTION AND DEVELOPMENT TECHNICAL REPORT ON THE FARM MECHANIZATION PROJECT IN NICARAGUA May 28, 1951 Loan Department  I T CURRENCY EQUIVALENTS I (Selling Rates) U. S. $1 - 7.05 cordobas I I cordoba - U. S. $0.14 I I 1m-million cordobas - U. S. $141,844 [1 _____________________________________  TECHNICAL REPORT FARM MECHANIZATION - NICARAGUA I, Purpose and Scope of Report 1. The Government of Nicaragua has requested the International Bank to on.sider a loan to cover the Afrnign exchanhge required forn tei nhllrhesA o,f agricultural machinery, particularly agricultural tractors. The loan, which wouLld be made to +'In Mn+4rnnal Bankr, xould be ap^roy4mitely $,2-` 00-r)O II, Background Information 2, Nicaragua is an agricultural country with an unusually high potential .L-WAJ '.~V~.LVJ.MVIiTLLU 4j^-,V U 'J.W .& IL t UM11J1iLQ. ,Q VIA.LV j JAL 1U0~LJ .L.Y -L LLW.LV r,0L ~. still unused in Nicaragua than in any other country in Central hmerica, end, furthoermore, much of the land aleady inU use 18 not utilized to its full capacity. 3. Though no census er other statistics are available as to the area availaDle ior new mechanization, tne x-o1iowing estLmates are aesea on thel opinion of informed persons: TABLE I Estimated Area Available for New Mechanization (1 manzana = 1742 acres) Province Manzanas Acres Boaco 2,000 3,484 Carazo 7,000 12,194 Chinandega 25,000 43,550 Chontales 12,000 20,904 Esteli 5,000 8,710 Granada 7,000 12,194 Jinotega 8,0CO 13,936 Leon 30,000 52,260 Madrig 8,000 13,936 Managua 10,000 17,420 Masaya 7,000 12,104 Mataga:lpa 10,000 17,420 Nueva Segovia 5,000 80710 Rivas 5, OCO 89710 Rio San Juan 1.000 1742 Zelaya 3 9.O TGTAL 145,000 252S590  - 2 - 4. 8Am 4a =iY4A=lri+ om TableI T+)he pr-4,4,rcil fa'rm regions are in TLer., Chinandega, Chontaleso Managua and Matagalpa. All of these, except i.Ianagua anA T+ "va- l.-a rnLich are cnofnr.A -cng nar eas naeo ae P -f ,a,,l far== ing in which the principal crops are corn, cotton, beans, sorghum, sesame, tA #_ _ n _A_ A _ UUAA _.A A.Lv .L..:0 ffi' lu~Ll ALZQ _~J 'JJ UJ. J-. sU AYL4 O LA I sugar wsane cand r ea,:i A4- -ov* -Jsco 4s-4F -s v- w.,s -a.4Sla tools and much of the work is done by hand, Nevertheless, they are all crops which, are Dusceptible of mechanirzation on a Alarge scale 5 1Th.et Lhas beeLn a 0t,rULg 1i uIt,ber i ir. iieh ai,j.Un in Nicaua Lux many years, Indeed, alI dealers claim that they have been unable to supply the demand for machinery in any year since 19424 The total number OI trec- tore in Nicaragua is now estimated at about 300, of which nearly one-half are approaching senescence. Assuming that the acreage given in Tabie I is approximately correct, there is opportunity for the use of about 1,000 new tractors, 6, The reasons for mechanizption are the same in Nicaragua as they -were in the United States twrenty years ago: (a) Labor is scarce, especially seasonally. Ten men and twenty oxen are required to do the work of one tractor and a 2-disc plow. It is difficult to assemble so many men and animals just for the plowing season, Further, the men must be pro- vided with housings food and accessories, while the oxen must be provided with pasturage at the rate of 60 acres out of each 400; (b) Farming as at present carried on with oxen and manpower is much more expensive than power farming. It is estimated that the cost of plowing one acre is C$ 40 (US$ 6) with oxen and C$ 7 (US$ 1) with a tractor; (c) Man-and-oxen power can be used only eight hours a day, whereas a tractor can be operated twenty-four hours, seven days a week during the short plowing season. The oxen-powered farms, as a result, are not often completely plowed. 7, Part of the current demand for machinery is due. no doubt. to the present boom in cotton, From the beginning of 1949, cotton has been an ext.remely profi~table crop and evronwith land sii4-Ttab fior cot-n wenitS to grow it. Wlhether the demand would continue if the cotton market should fall nffT iEI a n1iiP+AAV but there is good reason to think tha- lrA nne mechanized would remain in production for cotton, sesame, beafn3 or some ot-her orop v;hioh mi4ght eno- s as Oa v^^+cb1 as-a++^n v% + woI' l be wor* while nevertheless. 8. The construction of new roads and the developmez4t of a grai.n storage pje VJ