Many people wonder whether they should invest in new agricultural equipment. They have options and may spend countless hours debating which is best for their needs. New equipment has several benefits, including increased productivity and efficiency. However, there are also drawbacks. Knowing the benefits and drawbacks helps in the decision-making process.
The Benefits of New Agricultural Equipment
Many people find working with Rabo AgriFinance to purchase new equipment increases their operations’ efficiency. The advanced technology in newer machines reduces manual labor, leading to better resource utilization. When someone upgrades their existing equipment, more work can be done in less time.
Farmers understand the importance of precision farming. They need to know how much fertilizer they use on their crops and how much water they give the plants. They must also ensure they don’t use too much fertilizer, which could harm the crops. Farmers can improve their yield with precision farming while reducing their environmental impact.
Safety must be a priority in agricultural operations. Workers use heavy equipment as part of their daily tasks. New agricultural equipment has safety features that will help ensure they remain safe. The risk of accidents decreases, which is important because the CDC reports workers in this industry are at high risk of on-the-job injuries and death. Anything that increases the safety of the working environment is beneficial.
Farmers know they won’t have high repair bills when they purchase new equipment, as manufacturers provide warranties and support for this equipment. Workers know precisely where to turn when they have a problem, which gives them peace of mind. They will have help when needed, keeping downtime to a minimum.
Upgrading agricultural equipment also helps farmers remain competitive. The latest technologies allow farmers to advance as their operations become more productive. Furthermore, this equipment increases the quality of their crops.
The Drawbacks of Purchasing New Agricultural Equipment
As with any purchase, investing in new agricultural equipment has drawbacks. Farmers know the high cost of purchasing equipment and often have to turn to finance companies to help them complete the purchase. Small-scale farmers and those with limited budgets might find acquiring this equipment challenging, even with the help of a finance company.
Farmers must learn how to use the new technology found in the latest agricultural equipment. They must be trained on using the equipment and then train their workers. Once this training is complete, they still need time to familiarize themselves with the machinery. This process takes time and can be overwhelming for some. The learning curve that comes with upgrading equipment can deter some from making the purchase.
Depreciation is a concern with any significant purchase. As with any asset, equipment depreciates over time, affecting the return on investment. This problem is amplified when the farmer doesn’t use the equipment to its full potential, which is why training is essential.
When farmers purchase equipment, they are responsible for maintaining it. Warranties don’t cover this maintenance, and the manufacturer may void the warranty if the owner doesn’t follow the recommended maintenance schedule. In addition, if the farmer doesn’t maintain the equipment, it will not last as long or be as efficient, adding to the cost of ownership. 
Owners might struggle to obtain parts or services. This problem is common in rural and remote areas. However, it will also exist if the farmer leases or rents equipment. Downtime and delays are always concerns in underpopulated areas.
Farmers need all information when deciding whether to buy, lease, or rent agricultural equipment. With this information, they can make the right decision for their situation. Learn more today to see if buying is right for you.