Should You Purchase Your Farming Equipment?

| 11/23/2016 10:07:00 AM

Bobbi PetersonFarming equipment isn’t an area where people toss money around willy-nilly. This kind of equipment rarely comes cheap, and the stuff that does usually doesn’t last too long. For those reasons, it’s important to remember that you don’t have to own every single piece of machinery — there are many reasons why leasing or renting could be good options as well.

Buy What’s Important

There is some equipment you will want to own based on the kind of farming you do. Items you’ll use year after year and that play a major part on the farm, like tractors, are the kind of equipment you should invest in. There are three main things to consider when deciding if you want to buy an item: how you plan to use it, how many hours or miles you’ll put on it, and how many years you’ll need it for.

Buy New

If you know you’ll need to use the equipment basic operations on a daily basis for years to come, then you should definitely buy it new. Those types of items tend to be the most expensive, but they do come with some perks.

Most new equipment comes with warranties. That can be huge, especially for yearly maintenance, because with farming it’s always best to realize that problems pop up when you don’t expect them. With a warranty for some of your more expensive, necessary pieces, you’ll have less to worry about.

The thing that throws most people off of buying new is the price, and that makes sense. It’s pretty intimidating to spend that kind of money on anything. This is an area where financing can help, along with tax breaks. Section 179 of the IRS Depreciation, Depletion and Amortization code allows for tax breaks based on the purchase of farm equipment. Make use of it!

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