Deciding on to buy or not farming machinery or equipment is a crucial decision for a farmer to make, as this can impact directly their finances. Purchasing equipment can be crucial for a startup farm owner but the good thing is that the farmers have numerous sound options like renting and leasing while considering farm equipment needs for their farm.
When we talk about the large scale farmers and full-time farmers, the most significant machinery that they need is harvest equipment or combine. Every farmer has a different situation that impacts their decision-making process for whether purchasing or renting will be beneficial for them. As the prices of the latest and even used a used combine harvester continue to increase, the trend to rent a combine is becoming more popular nowadays.
Whether you are thinking of buying or renting machinery, or undecided, the more information you have on current utilization or efficiency and the overall cost of your production, the more knowledgeable decision you will make. In case of renting, all this information will also help you in creating a suitable agreement for the equipment you are renting for your farm as per your usage.
Utilization should be one of the most important key points when deciding on whether to rent or buy a combine harvester. As farmers are aware that buying a combine can be one of the biggest farm expenses, as a combine is the least used of all farm machinery compared to others with a utilization rate of approximately 7 percent a year.
Many farmers are exceptionally good at choosing the best of the latest farm equipment and technology to increase their efficiency and productivity at the farm. From this perspective, combine rental can be a pretty clear winner over the purchase.
In conclusion, some clear variables matter while making a decision about major equipment like the combine and renting and purchasing both have their advantages. A new combine is likely to be much more efficient than an old one, and renting can be affordable for you to take advantage of using the latest machine at a relatively lower cost.
Owning a machine includes the cost of maintenance and repairs, while also potentially exhausts your capital reserves. But when It comes about the usage if you need a combine harvester all year long, renting again and again and choosing an option can exhaust you.
So before you make any decision clearly understand the potential pros and cons of the possibilities and examine against your particular situation, and you will certainly make a smart decision for your farm.
Agri and Farm Talks 