AbstractA condensed version of the paper presented to the Expert Panel on the Effects of Farm Mechanization on Production and Employment, Rome, February 4–7,1975.Agricultural mechanization policies are urgently needed in the developing countries and assistance in the formulation of such policies provides a challenging task for joint work by agricultural engineers and social scientists. This paper examines the main factors relevant to the formulation and implementation of policies which balance the two aims of increasing production and increasing employment.