3 tips for funding farm machinery investments

 

Got your eye on something special for the farm? We know that quality machinery can be costly, but it doesn’t mean you have to miss out. We also know you want to buy the best possible products you can afford because going cheaper means you’ll spend more money on maintenance and upkeep!

Here are some tips for finding a way to stay within your budget when buying new machinery.

 

Remember That Time Saved Is Money Made

Your time is valuable. When you have equipment and machinery that makes getting the job done faster, you can actually save money by being more efficient.

By saving for a new piece of machinery that is going to make the harvest faster or improve your efficiency in planting new crops, you will make more money by being able to devote more time to other things.

• Consider the value of your new machinery and equipment, and think about what kind of time savings the new purchase could make.

• Weigh this up against your costs and work out how long it will take for this new purchase to ‘break even’.

 

1. Consider Joint Ownership Agreements

If you have a neighbour who is nearby and who is in the same industry as you, it might be worth speaking to them about making a deal to buy some equipment together.

If you work out an agreement for when the new machinery and equipment will be used, it can be highly profitable. After all, shared equipment means that you have shared costs. Moving towards economic efficiency is not only good for you and your business; it’s also good for the environment.

There are many advantages to considering joint ownership.

• Joint ownership gives you the freedom and flexibility to joint-own machinery with a friend, neighbour, or nearby farmer.

• This option is great for farmers who have similar needs or professional industries.

 

2. Look Into Financing Options

You may want to consider a rental agreement or a finance agreement for the purchase of your new machinery. You don’t always have to commit to the entire purchase price upfront, and you can often spread payments out over a number of months to ease the financial burden.

Working with a professional who can guide you in the right direction can be helpful. If you are considering finance, it is helpful to speak to your accountant or financial planner. You can also contact us about enquiries about finance options for agricultural machinery and earthmoving equipment.

• Financing is a way for you to get the equipment and machinery your business needs today while paying it off in the long term.

• Many financial providers allow for interest-free periods to give you the best opportunity to pay off your new machinery.

 

3. Government Grants

Considering buying new equipment but don’t have the funds for it? The local and state governments offer a range of grants to assist farmers and their families in getting the necessary equipment. If you are looking to purchase a farm, become a partner in the family farm, or are looking to upgrade your plant and equipment, there are First Start Loans that can be helpful for farmers.

• Our  government is here to support our farmers and provides a range of helpful services to get you to where you need to be.

• Explore your options when it comes to securing machinery. You may be surprised to find what you are eligible to access.