Read the following passage and answer the item that follows. Your answer to this item should be based on the passage only.

Farm machinery is often sold to Indian farmers on the promise that it will cut costs. On a holding of two acres it frequently does the opposite. A tractor bought on credit has to be paid for whether or not there is enough land to justify it, and the repayment falls due whatever the season brought. Custom hiring, where a machine is owned by one party and hired out by the hour, spreads that cost over many holdings and is what makes mechanisation pay on small farms. It also depends on someone maintaining the machine, scheduling it and standing behind it when it fails, and that role is unglamorous, poorly rewarded, and mostly unfilled.

Based on the above passage, the following assumptions have been made:

1. Small farmers do not benefit from mechanisation of any kind.

2. Whether mechanisation pays on a small holding depends on how the cost of the machine is spread.

Which of the assumptions given above is/are correct?