Farming is one of the oldest industries in the world, and in some ways, the production of crops and other resources has evolved. Various innovations were discovered throughout history, making it more efficient to harvest crops and raise and manage livestock.
Keeping up with the latest technology should be part of any farming venture, from the smallest farms to the largest corporations. When new upgrades come along, it might be time to consider whether you should upgrade or replace your existing equipment.
The Signs It’s Time for New Equipment
How do you know when you should upgrade? Look out for these signs:
#1: Your farm is expanding
According to William Edwards of Iowa State University, increased capacity is one of the compelling reasons to replace your farm equipment. When the number of acres of crops increases considerably, you may need to change your machine into a model that can complete planting and harvesting in a short amount of time.
#2: You’re planting a new crop
You might have started diversifying your sources of income to appeal to a broader range of customers. New crops usually require new equipment. Dealers may recommend tractors with interchangeable parts that can farm various crops more efficiently.
#3: Technology made your current equipment obsolete
Your equipment may be in working order, but newer models might do a better job of finishing your work in a short amount of time.
#4: Your equipment is expensive to maintain
Maybe it’s no longer economically feasible to maintain and repair your equipment. It might make more sense to buy a new machine than keep fixing your current one.
#5: Your workers are struggling with your current equipment
Your current equipment might put a strain on your workers, making them prone to musculoskeletal disorders and occupational injuries. These injuries could affect your farm’s productivity. It might make sense to replace your equipment with something that supports ergonomics.
Your Financial Options for Upgrading Your Farm Equipment
Although upgrading or replacing farm equipment helps your business be more competitive, it can represent a considerable part of your budget. The right financing can help you make the most of your investment without affecting your farm’s profitability.
If you have a considerable amount of cash to invest, you may use it to buy your new equipment upfront. Cash payment releases you from the responsibility of repaying the machine for months or years. You also don’t have to pay interest.
Securing business loans is an option if you don’t want to pay cash upfront for new equipment. You’ll find a variety of lenders that cater to farms and ranches. Some of them have a straightforward application process and low interest rates. The key is to look around for the best prices that meet your needs.
Leasing is something to consider if you’re not sure if you can afford the ownership costs of a new machine. This option saves you money because you can test the equipment to see if it works for your business. If not, you can return it and decline to renew the lease.
Upgrading your farm equipment improves productivity and makes your farm business more efficient. The upfront costs may seem expensive at first, but with the right financing options, you can make the most of your investment and grow your farm.