Combine - Purchasing Vs. Renting

When you decide on owning a Combine machine, whether you buy or rent, or yet to decide, the more knowledge you have about your existing utilization and the budget for your production, the more accurate decision you will make. In case of renting, all this information will help you create a better-structured agreement for a suitable level of utilization for your farm.

A new combine will definitely be more efficient in the fields than an ageing one, but renting gives you the chance to take advantage of this benefit at a comparatively low cost.

Utilization data should be your key when deciding on whether to buy or take combine on rent. As all farmers know, though it is about one of the most significant farm expenses, a combine is the minimum utilized of all farm machinery with a rate of utilization about 7% in a year.

A lot of farmers even whose land warrants purchase consideration, do not think that the price is justified for a farm machine that sits idle most of the time in a year, and therefore they decide to rent and use the capital in other parts of their business.

When we talk about the event of crop loss, rental equipment brings a lesser load than ownership. If you have financed the combine, the dealer will not stop your payments, while the combine continues depreciating in value even if it is not in use.

Farmers should know that the combine machine they purchased depreciates every year whether used or not. Thus, renting is an economical option as they do not need to suffer due to crop failure as they own machine on rent.

If you have sufficient information, and clearly know the pros and cons and all the possibilities, and evaluate them against your particular situation, you will certainly make a smart decision for your farm.