Farm Economics: Smart Ways for New Farmers to Get the Equipment You Need
While the main goals of farming have maintained consistent down through the decades, the route to achieve them is now quite different. Farmers of all ages have always been driven to help provide crops or livestock to help feed their neighbors and the rest of the world, as well. Farmers who worked the land a century ago could often make a good living with just a fraction of the land that makes up most farms today. Because of this, they could do their work with draft horses, oxen, or just their own muscles.
In contrast, today's farmer is often working thousands of acres of land and must have huge tractors to pull equally huge cultivators, harvesting equipment and more. If you are new to farming and trying to figure out your best options for obtaining the farm equipment you need, here are some options to consider.
Borrow from another farmer
Farming tends to be a generational business venture. If you are part of a farming family, and have parents, siblings, or other close relatives farming in the same area, borrowing the larger pieces of farm equipment you need can be a good idea. Doing this can free up some of your income to save for the purchase of your own tractors and equipment in a few years.
Barter with another farmer
If you have no family in the area, you may still be able to find other farmers in the area who would be willing to work out a barter arrangement. In return for the use of their equipment, you could provide a service, or other valuable item, of a similar value. For instance, if you raise cattle, you might offer to barter a few head of weaned calves for usage of a nearby farmer's tractors and farm equipment.
Lease the equipment
Farm equipment leases are another option for obtaining the machinery you need without having to make an actual purchase. A major benefit that younger farmers often see from leasing farm equipment is that it can free up cash and equity to use for other things a new farm operation needs, such as vehicles, fencing, farm buildings, or the purchase of more land.
Purchase used equipment
One of the frugal ways for a young farmer to get the equipment they need is to get farm equipment for sale. To learn more about the benefits of both purchasing and leasing farm equipment, new farmers should seek out a reputable farm equipment dealer in their area.
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