Farmers face a different set of obstacles compared to other types of businesses, namely due to the need for optimal farm equipment financing. On top of having to deal with seasonal weather changes and potential challenges resulting from drought or infestations, farmers must also factor in the large amount of capital required to upgrade their equipment. And when funding runs dry, they may be left without the necessary tools and machinery to complete their work.
Part of this challenge comes down to high costs, for which farmers must take into account. In terms of buying new machinery, getting the best deal on new or used equipment from a manufacturer is crucial because how much money is spent upfront may make or break some smaller businesses. That’s why farmers place a lot of emphasis on the performance of their machinery, since the success of a particular season is directly related to having the means to achieve a good harvest.
However, for those worried about increased operations expense, there are a number of ways for farmers to reduce equipment costs.
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Preventative maintenance
Taking care of the equipment that is already being used is perhaps the most cost-efficient way to keep a lid on increased business expenses. The key is to make small, timely repairs as they are needed so that larger problems don’t result in having to scrap the equipment completely, according to Virtual Grange.
For instance, routine fluid checks for motor engines, cleaning equipment thoroughly and using tools for their appropriate use are all ways to prevent issues before they start. Being proactive and placing a high value on the care of equipment can help protect farmers from having to fork over money for replacements.
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Refurbished parts
Over time, parts will naturally wear out and replacements will have to be found. It’s crucial that parts are installed to revitalize older equipment or else the entire machine may malfunction. However, it’s not always necessary to approach a manufacturer for brand new parts, because there are typically a variety of ways to use parts that have been remanufactured.
Agriculture.com noted farmers can save between 20 and 40 percent by choosing secondhand parts over new ones. There is very little difference in the real capabilities between the two, so selecting the cheaper version can reduce the cost of replacing equipment.
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Tire inflation
Farmers should keep a careful eye on all equipment with tires because oftentimes problems may not stem from the machine, but from its mobility, according to Titan Outlet Store. If tires are not properly inflated to the correct PSI, then tractors, plows and tillers will run slower and use more fuel.
Also, tires will degrade much more quickly, which can have an impact on the axles and bearings, potentially causing even more problems. Keep all tires inflated and check for worn treads so all equipment is getting the best traction and operating at high speeds.
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Storage
Not only as a matter of preventing theft, but also of improving the condition of equipment, all machinery should be stored indoors. This can increase the lifespans of machines and allow farmers to trade in their harvesters and other equipment for higher values, Agriculture.com reported.
Equipment stored indoors is in some cases 20 percent more valuable than those left outside. When it comes time to buy new equipment, farmers can trade in their existing machinery for higher returns, offsetting the expense of the new purchase to a degree.
Realizing the value in their investments is the most important part of keeping equipment in top shape. In turn, costs can be reduced and more money can be directed toward expansion efforts.
Farmers looking for business loans or equipment leasing or financing should contact National Funding for options tailored to individual businesses.
