Not too long ago, farmers only had the choice to buy farm equipment for sale when they needed new implements, or they had a special job they needed to complete. The other option some farmers in Arkansas had was to hire another professional with the equipment to do the job for them.
Today, it is possible to lease, rent or to buy farm equipment for sale. This creates choices for farmers that can match their budget and their short and long-term farming goals. Knowing the benefits of buying, leasing and renting can help anyone to make the decision as to the best option for a given piece of equipment.
Renting
Renting is cost-effective for short term use of the more expensive options in farm equipment. For example, if a cow-calf operation was going to rip up and seed a field to grass due to low pasture production, rental of the tilling and seeding equipment for a single operation is often better and most cost-effective option than the full purchase of the equipment.
However, if there is an ongoing need for this type of equipment, longer term leasing or the purchase of new or used equipment may be the most cost-effective choice.
Leasing
Leasing is often a better option than making the decision to buy farm equipment for sale if there is a need for the equipment on an infrequent basis but when there is a significant amount of work required.
For example, it can be cost effective to lease hay and harvesting equipment for a few months for large operations if the current equipment does not have the capacity to get the job done.
Buying
The obvious advantage of purchasing farm equipment is that it is yours and available when needed. The two considerations are the price and how that works with your operating budget, as well as the ongoing maintenance and upkeep of the equipment.
Take the time to do the math and calculate the costs of renting, leasing and buying. In most cases, and with working farms in Arkansas, buying is still the best option for standard types of equipment and implements.
