Make no mistake about it; farm investments aren’t cheap. Even with 3% value decreases in recent years, agricultural land costs around £6,970/acre. And, that’s before you consider additions like livestock, crops, and the real kicker – machinery.
On average, farmers spend the majority of their budgets on equipment alone, a figure that’s come under significant fire of late as the industry faces challenges posed by Brexit and beyond. The fact is that, if savings don’t come into play soon, many within the industry will struggle to stay afloat.
It’s not all bad news, of course. As some innovative farmers are discovering, alternative options like trailer and plant hire for equipment they use less often is allowing them to save. Going down this route is especially beneficial as it enables them to reduce their on-site equipment to a skeleton crew at best, a benefit that can soon pay off in the following ways.
Lower upfront costs
Opting to rent rather than buy machinery that’s only used once a year could significantly reduce upfront costs. Every piece of farm and construction equipment does, after all, have a significant price tag. By comparison, rentals could cost as little as £50 a day, a figure that farmers can put to good use by ensuring efficiency during those 24 hours. As simple as that, it’s possible to put a farm investment to much better use than if you had to spend your entire budget on a stock of equipment you won’t see from one year to the next.
More workable farm space
Equipment is also an issue in that it takes up significant space in farm buildings and on your land. This turns potentially profit-churning areas into wasted storage space. By reducing the amount of equipment you have on-site, you can thus free room for further crop planting, or increased livestock housing. Each of which is sure to lead to more concrete profits than a tractor that sits unused. Given that, as mentioned above, farm investments are very much measured per acre, this is an invaluable benefit that you should utilise.
Fewer maintenance worries
Getting rid of unnecessary equipment can also work wonders for reducing maintenance worries. Machinery that’s only used for processes like harvest, for instance, is especially prone to breakdown as it sits unused for so many months between. This can lead to drained batteries and dust in the engine that sets you back every single year. By instead hiring annual equipment like this, you can thus ensure that you’re only paying for usage, without once having to worry about services, additional parts, or replacement engines. And, again, that could see you saving a small fortune.
A skeleton equipment crew can seem daunting if you’re used to a well-stocked farm and, don’t get us wrong; you will want to take care when deciding what machinery makes the cut. But, get this decision right, and you could soon start earning a great deal more, as well as saving yourself expenses across the equipment board.