Correspondence to : P.S. Ranjith Kumar Department of Agricultural Economics,University of Agricultural Sciences, G.K.V.K., Bengaluru (Karnataka) India ABSTRACT : The present study has been carried out in Eastern dry of Karnataka with objective of analyzing the feasibility of CHSCs and to document the farm machinery generating higher incomes to CHSC in the study region. The primary data for the study has been collected from the 30 custom hire service (CHS) providers comprise of government sponsored CHSCs operated by NGOs and private firms and farmers owning farm machinery for CHS in the study region by following purpose multi- stage random sampling procedure. The study highlighted that the farmer CHS providers own farm machinery which are having greater demand from the users and able to generate higher profits in shorter period of time. The break point analysis showed all the machinery owned by farmers is capable of generating higher incomes. While in case of government sponsored CHSCs, the breakeven point analysis showed that some of the implement such as brush cutter, ground nut pod stripper, power tiller, ragi reapear and rotary tiller were unable to cover even the fixed and variable costs occurred an account use of these machinery. It indicates owning these machineries/implements are unworthy and can think of replacing theses with the machineries which are in great demand from the farmers. KEY WORDS : Custom hire services, CHSCs, Farm machinery, Farm mechanization, BEP HOW TO CITE THIS PAPER : Kumar, P.S. Ranjith and Mahadevaiah, G.S. (2018). Breakeven analysis of custom hiring service centres operating in agriculture – An economic study in Karnataka. Internat. Res. J. Agric. Eco. & Stat., 9 (1) : 141-148, DOI : 10.15740/HAS/IRJAES/9.1/141-148. Paper History : Received : 21.08.2017; Revised : 25.01.2018; Accepted : 09.02.2018 Breakeven analysis of custom hiring service centres operating in agriculture – An economic study in Karnataka P. S. Ranjith Kumar and G. S. Mahadevaiah Research Paper HIND AGRICULTURAL RESEARCH AND TRAINING INSTITUTE INTRODUCTION : Agriculture labour is a major input in production process. An increasing cost for maintenance of draft animal and growing scarcity of farm labour has created new challenges in competitive productive system. The basic requirement to meet this competition is to reduce labour usage and maximize labour productivity which depends greatly on the availability and judicious use of mechanized power by the farmers. As a result, a gradual shift from dependence on human and animal power to International Research Journal of Agricultural Economics and Statistics Visit us - www.researchjournal.co.in  DOI : 10.15740/HAS/IRJAES/9.1/141-148 Volume 9 | Issue 1 | March, 2018 | 141-148  e ISSN-2231-6434 IRJAES 128/17 (26) mechanical power in agriculture sector over a period was observed (Singh et al.,2013). Mechanization is observed largely in the large agricultural holders and still beyond the reach of small/ marginal holdings which constitute around 80 per cent of the total agricultural land holdings. The inadequacy of farm power and machinery with the farm-operators and particularly with the marginal and small farmers, has always been perceived as one of the major impediments to increasing agricultural production and productivity (Anonymous, 2015a and b). This is due to the fact that