The Cost of Owning Farm Equipment

Farm equipment is absolutely critical to modern agriculture. Having the right tools can make the difference between a successful operation and a failure. However, farm equipment is also expensive. It’s important that buyers understand the full cost of ownership before they put money down. That’s why the experts at Atlantic Tractor have created this guide to the cost of owning farm equipment. 

Your Operation Type

The size and scope of your operation will obviously have a huge impact on the kind of equipment you need and thus on the cost. A small-scale operation may be able to get away with only having a garden tractor and a few attachments, while a huge farm growing multiple different types of crop will obviously need something a bit beefier. Generally, the bigger your farm, the more you’ll have to spend on equipment. Of course, things can vary depending on the nature of your operation. For example, farms focused on livestock usually only need a few machines with multiple attachments to go with them, regardless of size. 

Understanding Costs

The biggest cost when purchasing farm equipment is usually the sticker price, to the point that many farmers choose to take out a loan. If you go this route, make the largest down payment that you can afford. A larger down payment will mean lower monthly payments and can even net you better loan terms. It’s also important to keep track of extra costs like equipment maintenance and fuel. It’s important to understand the operational costs before you purchase a piece of farm equipment. 

Depreciation

Depreciation is the process by which a piece of equipment loses its value over time. Depreciation is most relevant when it comes to reselling equipment. If you only plan to use a piece of equipment for a few years before selling it, it’s usually best to purchase a used model. This is because equipment depreciates the most in the first few years of ownership. Used farm equipment holds its value better, and can offer a better return if resold. 

Shop farm equipment at Atlantic Tractors. We operate 17 locations throughout Maryland, Pennsylvania, and Delaware. We also offer parts ordering, servicing, rentals, and promotions. We hope to see you soon!