Getting the right machines and attachments for your farm can help you stay productive and efficient, and having an equipment replacement strategy makes sure your machines will be up and running when you need them. If you’re in the market for equipment, farm equipment rentals, leases and ownership are all options to consider. We compare them below:
Farm Equipment Rentals
If you have an immediate need on your farm that calls for a certain type of machine or attachment, farm equipment rentals are a good option. Renting has a lower up-front cost as well as no long-term machine maintenance commitments, which can help save your farm money if you know you only need that piece of equipment for a short time.
The downside of farm equipment rentals is that you might end up paying more for the rental in the long run, depending on how long you need that machine or attachment. Renting your equipment doesn’t let you invest in your machine either, meaning that you can’t sell it later on like you would with an owned machine. However, there may be the option with your local Cat® dealer to buy your equipment at the end of your rental period, which would allow you to get some return on your investment.
Farm Equipment Leases
Farm equipment leasing is another option to think about when shopping for machines and attachments. Leasing gives you more flexibility with terms and payments, which might be a bonus if you’re looking to try out a new machine for a longer period of time than you’d get with a rental but still aren’t ready to buy. Agricultural equipment leasing also allows you to set a fixed cost for what you’re going to pay for your equipment. It’s also a good way to stay current with new technologies offered on farming equipment.
Farm equipment leasing comes with allotted hour restrictions, so be aware that you don’t go over the hours you’re allowed or else you’ll have to pay additional fees. Leasing also prevents you from building equity in your machines but, as with rentals, you can talk to your Cat dealer about purchase options at the end of your lease term.