There are tons of different factors you have got to take into consideration when you are buying agricultural machinery for your farm. From the price to the size of the machine, from the brand to the fuel economy, there are so many things you need to think about!

Nonetheless, one of the first decisions you must make is whether to buy or lease the machine. Both options are incredibly popular. In this post, we will take a look at each of them in further detail so you can determine the right solution for your requirements specifically.

Purchasing Farm Machinery Outright

Let’s begin by taking a look at purchasing agricultural machinery outright. This is something a lot of farmers prefer. They would prefer to have complete ownership of the machine so that they have something to show for their investment. When leasing a machine a lot of people feel as if they are pouring money down the drain. Buying is often a good solution when you intend to use the machine regularly. You know the machine is pivotal for your business – that it is going to be at the core of your operations and that you will use it for many years to come. In order to purchase a machine outright a lot of farmers will need to borrow money in the form of
farm machinery finance or use equity in order to finance this. You should not only consider the cost to purchase the machine, but you need to think carefully about running it as well. You will have everything from repair costs, to tax, to insurance to cover.

Leasing Farm Machinery

The other option at your disposal is, of course, to lease the machinery for your farm. When you go down this route you will have a contract with the company that owns the machine. They will allow you to have exclusive use of the machine in question for a set amount of time, i.e. 24 months or 36 months. During this time you will pay a set amount of money for the service, usually on a monthly or quarterly basis. A lot of farmers go for this solution when they do not have the money available to purchase a machine outright. Moreover, you won’t be responsible for all costs if you opt to lease a machine. For instance, you will not have to pay the repair expenses should the machine break. Thus this is another benefit. Nevertheless, it is worth pointing out that you may have to pay a fine if you decide to cancel your lease contract early.

Hopefully, you now have a better understanding of both options that are available to you when it comes to acquiring farm machinery. You can either purchase the machine outright or you can decide to lease it. There is no right or wrong answer. It is all about determining what is going to be right for your business and your situation. So, use the points that have been mentioned in this post to guide you and help you come to the right conclusion.