Evaluating the Need Of Modern Farms for Agriculture Equipment

by

Priyanka Mathur

Agricultural equipment is becoming vital for farming. For the growing need of production, agricultural modernization and mechanisation is aggressively being employed in both small and large farms.

This farming equipment provides farmers with innovative ways to reduce time consumption, labour cost and encourage a growth in agricultural productivity.

New and advanced farm equipment is now available for various agricultural procedures such as levelling, tilling, sowing, reaping, harvesting, irrigation and many more strenuous farming chores. However, one needs to address caution whilst investing in farm equipment, as they may be left with unavoidable debt and a whole lot of unneeded machines.

Guide To Buying Farming Equipment:

Agricultural equipment can be availed in two ways, either buying or leasing the farm machinery, depending on a number of factors. The agri equipment needs of a farm can be determined by evaluating factors such as yield, farm size, crop type, budget and much more.

Let us evaluate both leasing and buying options for farming equipment:

Leasing of Farming Equipment:

The leasing of farm equipment can be opted for, in cases where the farm is small, has a low equipment budget and a rare usage of expensive machines.

Advantages:

• No need to acquire a debt or pay interest
• Flexible payment options
• One can change the equipment or get an upgrade at a low premium

Disadvantages:

• Higher lending cost
• Used and worn down equipment
• Inability to get all equipment at the time of need.

Purchasing Farming equipment:

Buying farm equipment that one needs frequently can prove favourable for production and profitability. Larger farms usually opt to buy farming equipment as the machines pay for themselves in a few years’ time. The machines that one can buy should be:

• Frequently used
• Add value to the productivity
• Reduce labour and time

Advantages:

• Full equity through ownership
• No need to worry about fines and returns
• Always available machines can be used at full potential

Disadvantages:

• May become obsolete
• Immediate cash needs and payment for paying full or partial payment
• Huge debt on balance sheets

Farmers on a budget restraint can also opt to collectively purchase farm equipment and implements, thus dividing the cost and in-turn reducing the burden on one farm.

Leasing equipment that is frequently used and not highly expensive can end up being more expensive. If the farming equipment is important and beneficial for farm needs, it can repay its worth in few months of use.

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