At some point in time, every farmer will need to purchase farm machinery like a tractor, harvester, or irrigation system, which usually comes with hefty price tags.
However, what if we told you that it is possible to acquire good-quality equipment at a price that could save you thousands of dollars?
Well, all it takes is a little savvy know-how.
Here are seven strategies you can employ to help you make smart and cost-effective decisions when purchasing farm machinery.
1. Properly Assess Your Needs
Before you start looking at farm machinery options, you should take the time to understand what your specific needs are.
Asking yourself questions like ‘What type of equipment is essential for my farming operations?’, ‘Can I manage with a smaller or older model?’, and ‘How often will I use this machinery?’ will go a long way towards helping you avoid making unnecessary purchases.
At the same time, you will better be able to identify what pieces of machinery are integral to your business and can provide you with the best return on your investment.
2. Consider Buying Used Equipment
Farm machinery can be expensive when bought brand new. So, it is worth seeing what is available on the second-hand market, as it can save you a lot of money.
As many farmers upgrade their machinery on a regular basis, they often look to cover this cost by selling their existing equipment – usually at very reasonable prices.
However, if you do intend to purchase used equipment second-hand, make sure you inspect the machine thoroughly for signs of wear and tear. You should also always test the equipment before purchasing to ensure it functions correctly, and ask for a copy of its maintenance records to establish how well it has been well cared for.
3. Take Advantage of Machinery Auctions
One of the best ways to get a good deal on farm machinery is to participate in machinery auctions with AuctionsPlus or other reputable auction platforms.
These auctions often offer a wide selection of equipment at competitive prices. However, to make the most of them it pays to be prepared, so make sure you research the auction listings in advance to identify what equipment you need.
It is worth setting a budget and making sure you stick to it, otherwise you’ll end up paying over the odds.
Don’t forget to factor in additional costs, such as transportation and potential repairs if your bid proves to be successful, because you’ll need to take the machinery to your farm.
4. Negotiate
When purchasing agricultural equipment and machinery, many people just accept the price quoted to them without negotiating for a better one.
However, it is always worth coming back with a counteroffer, especially if you are the only one interested in purchasing the item because dealerships or private sellers want to make a sale.
When it comes to negotiating, it is important to know the true market value of any given piece of machinery and make it clear that you are not going to pay more than it is worth.
You should also ask for discounts on bulk purchases and whether they offer financing options that come with lower interest rates, and if you are buying new equipment, check if they offer trade-in deals for what you currently own.
5. Look for Government Grants and Subsidies
Depending on where you live, there may be government programs that offer grants or subsidies for farmers who need to purchase machinery.
One such initiative is the On Farm Connectivity Program which provides eligible Primary Producers with a rebate of up to $30,000 for any smart farming technology that is purchased through an Approved Supplier. However there are several others that support sustainable farming, or their goal of improving efficiency and reduce emissions.
Make a point of checking with your state and federal agricultural departments to see what financial inducements might be available to you when you next need to buy machinery.
6. Consider Leasing Instead of Buying
If you only need a particular machine for a limited period of time you might find that leasing is a more cost-effective option than buying.
By leasing, you will be able to use the latest technology without outlaying the large upfront costs associated with their ownership.
This, in turn, will free up capital for other farming equipment you might need to purchase, and it should reduce maintenance and repair expenses as they will most likely be under warranty.
7. Join Farming Cooperatives and Buying Groups
A great way to save money when purchasing farm machinery is to join a farming cooperative or machinery buying group because this allows you to pool your resources together with others to purchase equipment at discounted rates.
As they often negotiate bulk discounts with suppliers, these groups can help you to save a tidy amount of money on big-ticket purchases.
