Bihar Farmers to Get Up to 80% Subsidy on 86 Farm Machines Under ₹236.58 Crore SMAM Scheme

Key Highlights

• ₹236.58 crore approved for SMAM Scheme 2026-27

• 40% to 80% subsidy on 86 farm implements

• 267 Custom Hiring Centers to provide machines on rent

• 480 Kisan Drone Centers to boost modern farming

• 38 Equipment Banks and 200 stubble management centers planned

The Bihar government has approved a ₹236.58 crore budget for implementing the Sub Mission on Agricultural Mechanization (SMAM) scheme during the 2026-27 financial year under the state's Fourth Agriculture Road Map. The initiative aims to make modern farming equipment more accessible by offering 40% to 80% subsidy on 86 types of agricultural implements and expanding farm mechanization services across the state.

The scheme is designed to help farmers reduce cultivation costs, improve productivity, save time, and encourage the use of advanced agricultural technology, especially among small and marginal farmers.

Farmers to Get Subsidy on 86 Agricultural Implements

One of the biggest highlights of the scheme is the subsidy on 86 different types of agricultural machinery. Depending on the equipment category and the applicant's eligibility, farmers will receive 40% to 80% financial assistance.

The state government expects this support to increase the adoption of modern farm machinery, reduce dependence on manual labour, improve operational efficiency, and enhance crop productivity.

267 Custom Hiring Centers to Be Established

To ensure that expensive farm machinery is available even to farmers who cannot afford to purchase it, the Bihar government will establish 267 Custom Hiring Centers across the state.

Each center will have a project cost of ₹10 lakh, with the government providing 40% subsidy up to ₹4 lakh. These centers will allow farmers to rent modern agricultural equipment whenever required, helping lower farming expenses while improving efficiency.

38 Agricultural Equipment Banks to Receive Up to 80% Subsidy

The government will also establish 38 Agricultural Equipment Banks to promote the shared use of agricultural machinery among farmer groups.

Each equipment bank will have a project cost of up to ₹10 lakh, while eligible groups will receive up to 80% subsidy, with financial assistance capped at ₹8 lakh. This initiative is expected to improve access to modern machinery for farmers who prefer community-based equipment sharing.

200 Special Centers for Crop Residue Management

To promote scientific crop residue management and reduce pollution caused by stubble burning, the government will set up 200 dedicated Custom Hiring Centers for crop residue management.

Each center will have a project cost of up to ₹20 lakh, and eligible applicants will receive 40% to 80% subsidy, with a maximum grant of ₹12 lakh. These centers will provide tractors with 55 HP or higher along with other essential crop residue management equipment.

480 Kisan Drone Custom Hiring Centers Planned

As part of its push towards precision farming, Bihar will establish 480 Kisan Drone Custom Hiring Centers across the state.

Under this initiative, agricultural graduates will receive a 50% subsidy up to ₹5 lakh, while other eligible applicants will receive 40% subsidy up to ₹4 lakh. These centers will provide farmers with drone-based spraying and other advanced agricultural services, making modern technology more accessible at affordable rates.

Government Focus on Small and Marginal Farmers

Bihar Agriculture Minister Vijay Kumar Sinha said the government's objective is to ensure that small and marginal farmers also benefit from modern agricultural technology. Since purchasing costly machinery is not possible for every farmer, the expansion of Custom Hiring Centers will allow farmers to rent equipment as needed instead of buying it.

According to the minister, this approach will help reduce farming costs, save valuable time, and improve agricultural productivity across the state.

Agricultural Mechanization Fairs to Be Held Twice Every Year

To spread awareness about government schemes and modern farming technologies, the state government will organize two-day Agricultural Mechanization Fairs twice a year in every district.

During these fairs, farmers will be able to watch live demonstrations of modern agricultural machinery, interact with agricultural experts, and learn how to apply for various government schemes and subsidies.

Major Push for Farm Mechanization in Bihar

With a total approved outlay of ₹236.58 crore, the Bihar government's agricultural mechanization programme is expected to significantly strengthen access to modern farm equipment throughout the state. By expanding Custom Hiring Centers, Agricultural Equipment Banks, crop residue management facilities, and drone service centers, the initiative aims to make advanced farming technologies affordable for farmers of all categories. The government expects the scheme to reduce cultivation costs, improve operational efficiency, save time, increase productivity, and ultimately boost farmers' incomes while encouraging sustainable farming practices.

Also Read: Kharif 2026: UP Government Releases Division-Wise Fertilizer Stock List, Says No Shortage of Urea, DAP or NPK for Farmers

CMV360 Says

The Bihar government's ₹236.58 crore SMAM scheme marks a major step towards modernizing agriculture by making advanced farm machinery affordable and accessible. With subsidies of up to 80%, new Custom Hiring Centers, Equipment Banks, crop residue management facilities, and Kisan Drone Centers, the initiative is expected to benefit small and marginal farmers the most. The scheme aims to reduce farming costs, improve productivity, encourage sustainable practices, and increase farmers' overall income.