Buy, rent, maintain and repair: farm equipment essentials to save you money and time
Wed 14 December 2016 - 4:36 pmAgri-Business | Construction | Engineering | Industry | Manufacturing | Resources | Energy | Transport | Logistics
To run a successful farm, you have to find ways to cut costs while still maintaining the quality of your equipment. This can be a tough challenge for many farmers, especially those who run smaller farms without a lot of cash at hand.
The good news is that there are several ways you can find great equipment for less money than buying new. This will not only allow you to keep your production moving forward, but will save you money for unexpected problems and future expansion. Whether you want to buy used equipment, rent new equipment or just maintain your own equipment, there are several things you need to consider. Here are some tips when you want to do anything but buy new.
Buying Used Equipment
Used farm equipment is a great way to get quality machines without having to take a big depreciation hit or get roped into a long lease or loan. But do you know how to go about finding and buying used equipment? There are several things to consider.
First, figure out how much money you want to spend. This figure may be larger if you are going to take out a small loan. There are times when you may need cash up front, so determine how much free cash you have as well as how much you can get a loan approved for. This will also determine if you should buy used from a deal or if you should visit an auction.
Auctions are another great way to get equipment cheaply. Just be ware that you may have to make repairs on any machines you buy, so there may be hidden costs. Also, go over each piece of equipment as thoroughly as you can before bidding so you won’t be hit with any unexpected repairs.
If there is a piece of machinery you need for a ‘one-time job’, then it makes sense to just rent the equipment you need and hand it back when the job is completed.
One of the best benefits of renting is that can get the newest machinery with the newest technology for just a few small payments, depending on how long the job takes to complete. If it’s a particularly short job, you may even be able to rent with money from your own pocket. If it’s a longer job, you may need to take out short term finance to cover the costs.
The real benefit to renting, however, is that you will be able to get rid of the equipment as soon as you are finished with it. It doesn’t make sense to buy machinery for a one-time job. You won’t have to worry about upkeep and maintenance, or the hassle of reselling it down the road.
Repair Your Old Equipment
If you can, the absolute cheapest way of getting the most out of your equipment is to repair it yourself. This way, you won’t have to enter into any contracts for loans and you will not have any extra monthly payments that could put a financial strain on your farm.
Pairing traditional parts dealers with websites like German Bliss Equipment, you should have no problem finding any parts at a price that’s right for you. This means that you can make all of your equipment last longer.
Of course, if you can’t make the repairs yourself, there are plenty of professionals that can help you out. This may cost you a little extra, but it can still be much cheaper than buying replacement equipment outright, whether new or used.
Get Rid of What You Don’t Need
As your farm grows, your equipment needs may grow and change as well. There’s a good possibility that, if you took a long walk around your farm, you could find many pieces of equipment that you no longer use and that are just sitting there gathering dust.
Getting rid of these pieces of equipment will not only free up space, but may offer you a chance to earn some money toward repairs or buying used equipment. If those machines are still in working order, you can sell them to someone who needs them. If they no longer work, you can scrap them for a little extra cash as well.
Saving time and money on equipment is an important part of making your farm grow. Think about these tips next time you need new equipment.
About the author
Alexander Clayton runs the family farm, the same farm which he grew up on and which his kids now enjoy. Alex writes about the farming industry, and shares his thoughts and ideas on day-to-day operations in order to succeed.