Three Tips on Purchasing Agriculture Equipment
The farming industry is flourishing, and if you ever want to own a farm, you must know the proper way of purchasing the equipment. Working on a 5,000-acre field will require machines that are less complicated than if you work on a 10,000-acre field. Besides, if you choose to import big tractors, there are some precautions that you must know. Otherwise, you will only burn your money.
New vs. Used Equipment
If you know where to look and who to trust, buying used machines can save you a lot of money. There are at least four types of tractors you will need: a soil cultivation tractor, seeder, irrigation machine, and a harvesting tractor. And each of those machines will cost you approximately $100,000 and above. If you live near Ohio, you can check Superior Farms for further details.
Now consider if you’re investing in used equipment. You can get half of that price and start producing profits. However, you need to note that used machines often do not have the manufacturer’s guarantees anymore. If some parts break down, you’ll have to repair with your own money.
Choosing a Capable Procurement Agent
Your farm will need supply. And instead of trying to find a new contractor for each of your farm’s demands, it is better to entrust the task to one contractor only so that you can ask for discounts after several purchases. Moreover, a farming supply contractor usually has a membership system that grants the customers special offers.
Second, you want a procurement agent that has gained a significant reputation. You can review this quality from the company’s website. If it has been dead for a while, then the chances are that the management does not work well.
Plan Your Expansion Ahead
Farming is an expensive business. You do not want to build facilities and invest in some equipment that can hinder you from expanding the varieties of your products. For instance, this year, breeding goats seems to be a promising start. And then you rent a 5,000-acre field, and you turn it into one big goat ranch. Making a step like this is very risky. Once you fail, or the demand is not as profitable as you have thought it was, your farm will definitely fall to bankruptcy. It is much safer if you have multiple commodities in one farm. Your profit may not be as high as if you make a specialized farm, but it will have a good chance of survival.
Therefore, please invest your budget in general farming machines and tools. You surely can upgrade your farm’s equipment, but do it later after you have a stable business.