Regardless of the stage of mechanization, new power sources are always used first for power-intensive operations. Furthermore, it appears that the price of labor matters less for the mechanization of power-intensive operations than for control-intensive ones-that is, it often pays to move to a higher stage of mechanization in power-intensive operations, even at low wages, when mechanization of control-intensive operations is not profitable.
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On the other hand, a contractor servicing many small growers in a local region can spread the capital cost accordingly and provide a service at an affordable price. For individual farmers who cannot afford a new and expensive item of equipment and who prefer not to depend on contractor availability, purchase of second hand equipment is an option where the support of a local finance agency may be required.
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