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There is strong advocacy for agricultural machinery appropriate for smallholder farmers in South Asia. Such ‘scale-appropriate’ machinery can increase returns to land and labour, although the still substantial capital investment required can preclude smallholder ownership. Increasing machinery demand has resulted in relatively well-developed markets for rental services for tillage, irrigation, and post-harvest operations. Many smallholders thereby access agricultural machinery that may have otherwise been cost prohibitive to purchase through fee-for-service arrangements, though opportunity for expansion remains. To more effectively facilitate the development and investment in scale-appropriate machinery, there is a need to better understand the factors associated with agricultural machinery purchases and service provision. This paper first reviews Bangladesh’s historical policy environment that facilitated the …