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Farm Equipment Rental

Farm Tractor, equipment and machinery have limited use in all through the year. Renting this equipment can save from covering in dust can help you get an extra income. Find here the benefits of renting farm equipment in United States.

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Farm Equipment Rental

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  1. Farm Equipment Rental Case Study By: Sarah John

  2. Farm Equipment Rental Most of the farm equipment spend a vast majority of their life sitting idle, while owners are making monthly payments on them. The option to rent equipment makes great sense financially if you need it for a few months only. Plus you don’t need to store or maintain the equipment. Technology is ever changing so you can rent latest equipment every year instead of being stuck with an old machine.

  3. Advantage of Renting Farm Machinery • Less liability on the balance sheet. • Equipment available for short-time needs. • Access to and use of latest technology. • Lease payments are considered production expenses for tax purposes • Lower initial investment • Can trade frequently • Payments usually lower than loan payments • Know machine before purchasing • Payments tax deductible • Lower up-front, down payment costs compared to purchasing.

  4. Types of Equipment That farmer Can rent • Tractor  • Tillage Equipment - Plough, Rotavator, Harrow, Cultivator, ripper, subsoiler • Seeding Equipment -Happy Seeder, Disc Drill, Zero Drill, Post Hole Digger, Pneumatic Planter, Multi-Row Planters • Landscaping Equipment - Leveler, Cutters, Box Blade • Crop Protection Equipment- Boom Sprayer, Fertilizer Spreader • Harvest Equipment- Combine Harvester, Forager Mover • Post Harvest Equipment- Baler, Rotary Mulcher, Sugar Cane Loader

  5. Factors to Consider When Custom Hiring • Timeliness: Significant loss can occur if an operation is not started or completed on time. • Operations: The parties should write into the agreement the exact operations to be performed by each party and the machine, materials and labour to be supplied by each. • Rate Schedule: The custom operator should stipulate the rate for each operation to be performed on the basis of acreage, time or total operation performed. • Management: A custom hiring agreement should ensure that the custom operator will employ acceptable management practices in his/her operations. • Insurance: A custom operator may be considered differently than a farmer when insuring. • Terms of Payment: A custom hiring agreement should stipulate terms of payment for custom operations

  6. Questions to consider when making the decision to Renting or purchase farm Equipment • Is my operation stable, expanding, or downsizing? • What are my cash flow needs? • How long do I need the Farm equipment? • What is my advisor saying about my tax situation? • Am I risk averse? • Is ownership important to me? • Is running the newest and latest technology important to my operation?    •  Is running Farm equipment under warranty important to my operation?

  7. Article Source https://cropwatch.unl.edu/leasing-vs-buying-ag-machinery-factors-assess http://chirkutidea.com/farm-equipment-rent-buy-farm-machinery/ https://farmease.app/ http://onlystudybyte.com/questions-to-consider-when-making-the-decision-to-lease-or-purchase/

  8. Thanks

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