Farm equipment: To buy or hire?
THERE has been debate in the farming community over whether a farmer should buy or hire equipment.
is debate requires a holistic approach. Firstly, it is important to identify the equipment that is necessary to have at the farm and this includes a tractor, a plough, a reaper, a disc harrow, a planter, a vicon sprayer and a trailer.
Hire
is is an option for those who do not have the financial muscle to buy equipment for farm operations.
e greatest limitation is that when you need to plough the field, the owner could be using the same tractor to do their own field. So in most cases those that hire tractors and equipment are forced to do it earlier than usual.
en another issue is that if one does not have cash, he/she may be forced to skip some operations.
Most farmers who hire tractors only get the disc harrow; they do not use the plough that often.
e other disadvantage is that even if you are not happy with the way an operation has been done you cannot ask the operator to repeat it. ey will charge you even if they are the ones who have not done a good job.
e truth is that hiring equipment has more disadvantages than advantages.
e advantages are hugely financial: you do not get to service and maintain the equipment while at the same time you do not have operators to pay at the end of every month even if the machines are not working.
You do not have to worry about where to keep the equipment since they need proper shades as they may be stolen or rust away because of the sun and rains.
Buying
e greatest advantage of buying your own equipment is that you will be able to do anything at any time at your own pace.
is gives one an upper hand in that they can even cross-plough their fields to get their desired tilth.
e other advantage is that farm equipment improves one's asset value at the farm. In case of liquidity challenges, equipment can be used as funds
Equipment can also be hired out, creating another revenue point for the farm.
Resources permitting, one would rather buy their own tractor and its implements than to hire from other service providers.
e good thing about it is that it really does not matter how big your budget is, because even with US$3 500 you can get a tractor.
ough the average price for a mediumsized tractor is US$12 000, the low budget can get you one that you can repair as you go. Most farmers are going into farms looking collateral to unlock for old tractors and then they rebuild them over time and do an engine overhaul and end up with a working horse.
A lot of these tractors are being sold in farming towns like Concession, Banket and Selous. among others.
ere are also tractors and implements being sold at various auction points.
Farming with your implements is always more enjoyable and stress free as you can plan better.
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