Leasing Vs Buying Farm Equipment

Farmers may wonder, about the out the differences between leasing and buying farm equipment. Both have their own advantages and disadvantages, few we will discuss here.

Before choosing between leasing and buying farm machinery,  we should consider these 3 major points and these are - what will you use it for? For how long you need it? Is it a one-time need or you need it to use regularly.

There is not a very huge difference in leasing or buying farm equipment.

1. When you buy equipment, as an owner you can use your machinery whenever you need it, without any restrictions. There is no hassle in using own equipment. While in leasing there is the hassle of doing all the paperwork associated with it.

2. While leasing of farm equipment a farmer has to invest in a fixed trade every few years and use the machine as per the bond. Fees are divided into two parts of principal and interest with the final being tax-deductible. Leasing offers lower wages that will help farmers to use this money in crop protection and production.

3. Leasing can be from short term to long term depending on the requirement of a farmer. Farmers who cannot afford large agricultural equipment or machines like combines, grain drillers, skid steers and other, can lease or rent.  But in case they use it frequently and a major part of their farming operations depends on these machines than buying a tractor, combine or other farm machinery will be more beneficial for them.

Owner of equipment also has to bear all the costs including market depreciation, insurance, taxes, maintenance and major repairs. Another good way to save large purchase costs is to buy used farm equipment. So leasing and buying both have their advantages and disadvantages, do your research and explore the market well before making any decision.

Advantages of Renting Farm Equipment

To produce a crop once in a year, farmers have to invest in expensive equipment that they use for a few months in a year. And that piece of equipment goes outdated in two to three years because of the new technology added in the same machine.

In today’s rapidly changing world farm mechanization is also majorly affected and the farm equipment manufacturing companies are consistently upgrading and launching new farm tractors and implements.

Although if you own machinery you don’t need anymore there maybe someone else, who need it. You may sell or rent it out to the farmer who needs it. There are several online farm equipment buy, sell and rental platforms that allow farmers to sell or rent out their equipment when they are not using it.

As an owner, to sell or rent out the equipment, you just need to create a listing of the equipment with the pictures, specifications, model, built and usage data. You need to provide the dates for your equipment availability and the rate per day or hour use.

The perfect advantage of sharing your equipment is the additional income you can make. When it is the season for you to take rest, maybe a farmer is planning to plant something that he would need equipment for. So this can be a great opportunity for him to rent farm equipment nearby without bearing the cost of purchase.

For farmers who want to rent a piece of equipment, there are multiple benefits to renting. First and most importantly they have access to the equipment without a burden of investing in a new piece of equipment.

Farmers who like to use upgraded technology can hire a piece of equipment as per their choice without a huge investment. Renting also allows them to switch from one equipment to another at a lower cost in case they need crop-specific equipment.

Advantages of Renting a Tractor When Starting Your Own Farm

Agriculture businesses are one of the most important contributors in the growth of a country, providing various types of edible products to people all over the world. Food business is a huge import-export market, yet most of the food is provided to inhabitants of the nation, and this is why farm businesses have the potential to be so successful.

Beginning a farm business does cost money and with expenditures like buying acreage, labours, seeds, and farm equipment, it can be pretty hard to begin your new farming business. One option to cut your expenses is through renting farm equipment so you that don’t have to pay up front for all the machinery and the maintenance cost for owning it either, specifically costly equipment like farm tractors.

This is why many Farm owners check all the pros and cons of renting a tractor, as these factors can be crucial for the success of your business.

·        Renting a Tractor can save you from the huge investment in machinery at the initial level of your business.

·        You can rent in latest models Tractors from big Brands like Kubota, Case IH, and John Deere at competitive prices.

·        Rent a tractor can save you from taking full responsibility for its maintenance and if you’re a newer company.

·        Unlike purchasing, renting allows you to pay per use or monthly rate for the equipment. When the rent period is up, you can return the equipment, and again rent it when needed.

·        Renting can you from sparing extra space at your farm for a farm tractor.

Key Advantages of Buying Farm Equipment

Farm equipment has become a necessary part of agriculture nowadays. High tech farm machinery not only increases the efficiency of any farm but also helps in reducing the labour cost of any farmer. 

Farmers in the USA use different types of farm equipment that includes landscaping equipment, harvesting equipment, seeding equipment, post-harvest equipment, tractors and many other tractor implements. There are several key advantages that make Farm Equipment a necessary part of agriculture.

1. Increase productivity and profits by lowering the cost.

2. Reduces the time of production.

3. Makes farming activities more efficient.

4. A modern combine machine lets a farmer complete tougher farming tasks like cotton picking with ease.

5. Farmers can earn money by renting out their machinery after a seasonal use.

6. East to get financial support for new machinery from the brand

7. High-end functionality.

8. Equipment doesn’t tire out and lets you make the most out of it.

There are many other benefits and these are just a few out of all. Farm Equipment can be a great deal for large-scale farmers and commercial farmers in the USA to add to their efficiency. Hobby farmers, contractual farmers or small farm owners can consider Buying Used farmequipment or can rent farm equipment, as this will be cost-effective to get the benefits and increase their efficiency.

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Accessing Farm Equipment made easy with Farmease

With the increasing mechanization and technology being a crucial part of this, the farm equipment market is also evolving day by day. New Technology-based equipment is not only helping farmers to improve production and efficiency but it is also making easier for them to reach and get the equipment in a short time, even from a remote location.

For instance, with the increasing digitalization, many manufacturers and dealers are offering farm machinery online through their e-commerce website and mobile Apps.

So that farmers can now easily contact them through the app or website and buy or rent the equipment as per their needs. Farmease is one of these online farm equipment rental and sell market places making accessing farm equipment easy for farmers in the USA.  Read more here - https://blog.farmease.app/accessing-farm-equipment-made-easy-with-farmease/