Reliable agricultural equipment not only increases a farm’s annual yield, but goes a long way in easing the stress that comes with such a temperamental industry. However, new agricultural equipment does not come cheap. Often a farmer’s biggest decision will come down to whether the agricultural equipment being used can be repaired, or whether it’s time for replacement.
Here are some factors to take into consideration when checking the new agricultural equipment on the market.
Obviously having sufficient funding for the equipment is a given, but if you’ve had a good year it’s definitely worth investing in some machinery that can keep your profits healthy. Because what inevitably happens is that your trusty equipment will break down at the most inconvenient time, when funds are tight, and it’s going to cost you.
Rather trade in your agricultural equipment now when it’s still worth something and you can afford to put in a bit extra for a better product. The longer you hold onto it, the quicker its value depreciates.
Although repair costs may start off slowly – and cost nothing if under warranty – the longer you retain equipment, the more repairs will be needed and costs may start to build over time. If you have highly skilled mechanical staff who can repair equipment onsite, then costs will obviously be reduced. But, generally speaking, the standard rule for minimising any equipment’s long-run cost is to invest in new equipment when the cost of owning and operating a machine begins to increase. So, when your repair bills essentially exceed your capital costs of owning a new machine, it’s time to start looking at investing in new agricultural equipment.
As is typical of any market, the supply of agricultural equipment relies on the demand which is directly linked to the farming economy. This is beneficial for most farmers as they tend to invest in new equipment during the boom years and repair in leaner times. However, if you’ve managed to save enough for new agricultural equipment and there’s a lack of supply, you might find bargains available although the equipment you specifically want may not be as easy to obtain.
Technology is impacting every industry and agriculture is no different. There have been huge changes in agricultural equipment technologically from combine harvesters using GPS auto-pilot to computer controlled seed planting. For the farmer, this means that even new machinery can become obsolete quickly. It’s vital for farmers to analyse the agricultural technology market before making any purchases. Better technology generally leads to increased efficiency and a bigger profit margin while providing more convenience for the farmer.
If you are looking to expand your agricultural empire, then your machinery will have to meet your growing needs. Old farming equipment will have to be replaced with models that have a larger planting and harvesting capacity while not losing too much time. On the other side, for farmers who are looking to downsize their crop yields, downsizing machinery could possibly save on costs. The number of hours a machine clocks up counts for a lot when looking at a trade-in.
Everything in farming can come down to timing. Farming equipment failing to function at a crucial moment in harvesting could cost a farmer dearly. This makes it all the more important for farmers to fully assess each piece of equipment, ensuring they are operating at maximum efficiency or risk losing out on large profits. If crops aren’t planted or harvested on time, there could be decreases in yield or quality.
The issue of time is compounded when the weather has been particularly bad – something that is becoming quite commonplace with global warming – making the need for new, fully-functional agricultural equipment that much more urgent. This requires farmers to factor in the cost of downtime with all future predictions and if the cost of downtime exceeds the tolerance for downtime or economic profitability, then it’s time to replace the machine.
Although agricultural equipment is extremely costly, the constant advances in technology often make it an imperative for farmers to invest in new machinery or risk falling behind. Make sure you research the market thoroughly and engage with people who know the industry well before investing in any equipment.
For the highest quality agricultural equipment contact Radium Engineering. With years of expertise, a passion for the agricultural industry and a commitment to manufacturing superior implements, Radium Engineering is the answer to all your farming and agricultural equipment needs.