Farm Machinery

Farm machinery it’s crucial, when it comes to modern, profitable agriculture. Farming it’s an agreeable way to make a living, and, with the right farm machinery, you have the chance to make farming easier and truly productive. When it comes to buying farm machinery, most farmers have to overcome a very serious obstacle: money. Farm equipment is quite expensive. However, there are solutions that can help farmers to afford the machineries they need.

Buy only if you have to

Well, you can avoid paying a fortune on farm machinery if you rent them, instead of buying them. However, you need to do the math before making a decision. First of all, estimate for how many days you need to use certain equipment each year. If you only need it for a few days per month and you have the possibility to rent the machinery, it probably doesn’t make sense to buy it. Calculate the renting costs per year then calculate the buying costs and compare the numbers, to see which of the two solutions is more profitable on the long term. Don’t forget that, if you rent farm machinery, you don’t have to pay for maintenance and repairs. When it comes to farm machinery that you use on daily basis, the right solution is to buy it or to lease it.

Farm machinery buying versus leasing

There are advantages and disadvantages with each of those options, and you need to analyze them carefully before making your decision. Let’s take an example: a tractor that costs $30 000. If you have the cash to buy it, you pay the money and the tractor is yours. The manufacturer will offer you warranty and free service for a few years, then you’ll have to pay for maintenance and repairs from your own pocket. An advantage is that you will benefit from tax deductions. If you lease the tractor, you will pay, let’s say, $6200 each year, for five years on a row. At the end of the period, you will probably have to pay another $2500 and the tractor is yours. Or, if you prefer, you can give the tractor back to the seller and get a brand new one, also in leasing. Leasing seems more expensive. You will pay a few thousands more on the tractor. Still, you have to consider the fact that, instead of being stuck with a 5 years old tractor, which will need regular maintenance and repairs. If you think that it’s better for your farm to get new equipment every few years, then leasing is the ight solution for you.

Check out this site for more information about a novated lease.

Used farm machinery

Used equipment is always a solution. You can buy the machinery you need at affordable prices. It’s important to get them from reliable dealers. Do a background check of the used farm machinery dealer, before deciding to do business with it. Also, find all the details about the warranty period and the service they provide for the used farm machinery.