Electrify agriculture: Developing an economically viable electric tractor concept for smallholder farming in Germany and Sub-Saharan Africa

Agriculture is responsible for up to a quarter of all greenhouse gas emissions, and tractors play a significant role in this through the combustion of fossil fuels, as they are the central component of the global mechanisation process. Hence, the transition to electric tractors (ETs) presents a significant opportunity for reducing fossil-driven emissions and switching to renewable sources. However, the electrification of tractors initially leads to higher costs, preventing widespread adoption of the new technology. Therefore, this study proposes a holistic view of the whole life cycle of electric tractors: We investigate the economic viability of electric tractors with a comparative analysis to equivalent diesel tractors. The paper presents a purpose-designed concept that involves a comprehensive bottom-up assessment of the total cost of ownership (TCO), providing a scalable component inventory and leveraging real-world agricultural data. Case studies are presented for different farming scenarios in Germany, Ethiopia, and Rwanda, revealing that while the initial acquisition costs of ETs are higher, the proposed purpose-driven design can lead to a substantial reduction in operational costs, and favourable electricity prices from renewable sources can lead to significant long-term savings. The model results demonstrate that with policy and design, electric tractors (ETs) can be a cost-effective and sustainable alternative to conventional diesel tractors in a smallholder farming context. • Bottom-up system modelling of an electric tractor concept. • Total Cost of Ownership assessment (TCO) of electric tractors comparison to diesel tractors. • The economic potential of electric tractors in smallholder farming. • Electric tractors reduce the TCO by 18 % in Germany and 21 % in Rwanda in comparison to diesel tractors.