Farm machines are no longer only for big farmers. With rising labour costs, short sowing windows, and pressure to manage crop residue without burning, small and medium farmers also need access to better equipment. This is where the Centre’s farm mechanisation push becomes important.

The Sub-Mission on Agricultural Mechanization, better known as SMAM, gives financial help to farmers for buying agricultural machines. Alongside it, the Crop Residue Management  (CRM) program is active in Punjab, Haryana, Uttar Pradesh and NCT of Delhi, with a special focus on reducing stubble burning around Delhi-NCR.

For a farmer, the main question is simple. Who can get the subsidy, how much support is available, and how does the application process work? Let’s understand it in simple words.

What is SMAM and why it matters

SMAM is a central scheme launched in 2014-15 to make farm machines more accessible, especially for small and marginal farmers. It supports machines used for land preparation, sowing, spraying, harvesting, post-harvest work and other farm operations.

The idea is practical. A small farmer may not be able to buy every costly machine alone. So, the scheme supports individual purchase as well as Custom Hiring Centres and Farm Machinery Banks, where machines can be rented by farmers when needed.

According to the Press Information Bureau, SMAM has supported the distribution of 21.61 lakh agricultural machines to individual farmers from 2014-15 to 2025-26. It has also helped set up thousands of Custom Hiring Centres and Farm Machinery Banks across India.

How much subsidy is available under SMAM

Under SMAM, general category farmers usually get 40% subsidy on eligible agricultural machinery. Higher support of 50% is available for SC, ST, small and marginal farmers, and farmers in North-Eastern states.

This means if an eligible machine costs Rs. 1,00,000, a farmer in the 50% subsidy category may get support up to Rs. 50,000, subject to the approved subsidy limit for that machine. The actual amount can change depending on the state, machine type, approved dealer price and government ceiling.

For groups and institutions, the support can be higher in some components. Farm Machinery Banks may get 80% assistance for eligible projects, while Custom Hiring Centres have separate support rules. Farmers should always check the official DBT in Agriculture Mechanization portal or their state agriculture department before purchase.

CRM program in UP and Delhi-NCR

The Crop Residue Management program is linked to the bigger issue of stubble burning. It supports machines that help farmers manage paddy straw and other residue in the field or collect it for other uses.

The scheme covers Punjab, Haryana, Uttar Pradesh and NCT of Delhi. This matters for Delhi-NCR because crop residue burning in nearby farm belts has often been linked with seasonal air pollution.

Under CRM, individual farmers can get 50% financial assistance for crop residue management machines. Custom Hiring Centres set up by rural entrepreneurs, farmer groups, FPOs, cooperatives, SHGs and panchayats can get 80% assistance for eligible projects. In some supply chain projects for paddy straw, support is also available for machinery used in collection and handling.

The Centre has also kept a fresh focus on this area. In June 2026, the government announced provision of Rs. 544.15 crore for 2026-27 for stubble management, with a target to distribute more than 46,000 machines and develop 141 stubble supply chain projects.

Who is eligible

For individual SMAM subsidy, farmers with valid land records can generally apply. Priority is given to small and marginal farmers, women farmers, SC and ST farmers, and regions where farm power availability is low.

For Custom Hiring Centres and Farm Machinery Banks, eligible applicants may include rural youth, farmer entrepreneurs, FPOs, SHGs, cooperatives, registered farmer societies and panchayats. The exact list may differ slightly from state to state.

For CRM subsidy in Uttar Pradesh and NCT of Delhi, the eligible applicants include individual farmers as well as groups that want to set up Custom Hiring Centres for residue management machines.

Common documents needed

Farmers should keep basic documents ready before applying. These usually include Aadhaar card, bank passbook, land record or khatauni, caste certificate if applying under SC/ST category, mobile number, passport-size photo and farmer registration details if required by the state.

For groups, extra documents may be needed, such as registration certificate, PAN, bank details, group resolution, project proposal and quotation from an approved dealer.

How to apply for SMAM subsidy

The process is mostly online in many states, but local agriculture offices still play an important role.

• First, the farmer should visit the official DBT in Agriculture Mechanization portal or the state agriculture department portal. Uttar Pradesh farmers can also check updates through the UP Agriculture Department’s official digital services.
• Next, choose the scheme, machine category and district. Fill in farmer details, land details, bank details and upload documents. The farmer may need to select an approved manufacturer or dealer from the list.
• After submission, the application is checked by the department. In many cases, there can be physical verification. Once approved, the farmer buys the machine through the approved route. The subsidy is then processed through DBT as per state rules.
• A simple example makes it clearer. Suppose a small farmer in western UP wants a Super Seeder for managing paddy residue and sowing wheat. If the machine and applicant category are eligible, the farmer can apply under CRM or the relevant mechanisation component. After approval and verification, the subsidy is released as per the approved cost and ceiling.

Machines covered under these schemes

SMAM covers a wide range of agricultural machinery, depending on the state list. This may include rotavators, power tillers, seed drills, reapers, threshers, sprayers, transplanters, harvesters and post-harvest machines.

CRM focuses on residue management. Machines commonly mentioned under the program include Super Straw Management System, Happy Seeder, Super Seeder, Smart Seeder, Surface Seeder, Zero Till Seed-cum-Fertilizer Drill, balers and straw rakes.

Farmers should not assume every machine is available in every district. Targets, budgets and approved models change from time to time.

Other options farmers compare with SMAM

SMAM is not a private product, so there is no direct competitor in the usual business sense. But farmers often compare it with private equipment rental, bank loans, dealer finance, state-level machinery schemes and Custom Hiring Centres.

For many small farmers, renting through a Custom Hiring Centre may be more sensible than buying. A machine used only for a few days in a season may not justify the full cost, even after subsidy. On the other hand, farmers with larger land or regular rental demand in their village may benefit from owning machinery or setting up a hiring centre.

Conclusion with key takeaways

SMAM and CRM are important because they bring modern farm machinery closer to ordinary farmers. The SMAM subsidy can go up to 50% for eligible individual farmers, while CRM gives targeted help for residue management in UP, Delhi and other northern states.

Key takeaways –

• SMAM supports farm mechanisation across India and was launched in 2014-15.
• General farmers usually get 40% subsidy, while SC, ST, small and marginal farmers can get 50%.
• CRM is active in Uttar Pradesh and NCT of Delhi for crop residue management.
• Individual farmers can get 50% support for CRM machines, while eligible Custom Hiring Centres can get 80% assistance.
• Farmers should apply only through official portals or local agriculture offices and check approved machine lists before buying.

Facts Input- FNBNews, PIB, PIB-Sub-Mission on Agricultural Mechanization, DBT in Agriculture Mechanization portal, PIB-Stubble management meeting, PIB-Crop Residue Management