Seven Mistakes You Want To Avoid When You're Purchasing Farming Equipment
One of the most important assets of any farming operation is heavy equipment like tractors and attachments. You need to purchase your farming equipment carefully to maximize the success of your operation.
The following are seven mistakes you want to avoid when you're purchasing farming equipment.
Taking on too much debt to purchase farming equipment
While equipment is essential, it's important to set a budget when you're purchasing equipment. Farming is a business where you routinely have to wait an extended period of time for your revenue to start coming in.
It's therefore important to minimize the debt you're taking on and maintain a reserve of cash to ensure that you'll be able to keep up with expenses until it comes time to sell your crops.
Being unaware of local regulations that could impact equipment usage
Certain municipalities have regulations in place regarding the type of farming equipment you can use or the type of training you need to go through to use equipment.
Make sure you're aware of any pertinent regulations before you purchase equipment to avoid losing money on your equipment or violating local regulations and facing fines or other penalties.
Being unaware of possible tax incentives you could take advantage of
If you purchase a new piece of farm equipment, you might be able to claim a special tax break or deduction for it.
Certain government programs are in place to encourage new business ventures or to reward property owners for using sustainable technologies. See if you can benefit from such a tax incentive program.
Purchasing equipment that's too small for the scale you're working with
Scale is an essential consideration when it comes to purchasing farming equipment. While smaller pieces of machinery may be less expensive, they will also make you less efficient and productive when you're using them to work large acreages.
Neglecting to test drive farming equipment
Test driving equipment is important for a variety of reasons. A test drive will allow you to gauge the comfort offered by a particular piece of equipment. A test drive will also allow you to gauge the mechanical condition of the farm equipment in question.
Purchasing equipment without understanding its maintenance and repair needs
You're going to need to keep up with equipment maintenance over time to keep your farming equipment in working order. It's therefore important to understand the needs and costs of maintaining farming equipment before you purchase it.
Purchasing equipment without a cab that you will need to operate in temperature extremes
While tractors and equipment without a cab may be less expensive, you may end up facing negative consequences for purchasing them down the road.
If your tractor doesn't include a cab, you won't be able to benefit from AC or heating while you're operating it. This could detract from your productivity down the road as it reduces the stretches of time during which you can comfortably and safely work in extreme temperatures.