Farm Equipment Rental
                     Farm Equipment 
Rental
Case Study
Click to edit Master subtitle style
By: Sarah John
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.
Advantage of Renting Farm Machinery
Lower initial investment Less liability on the balance 
Can trade frequently sheet.
Payments usually lower than Equipment available for short-
loan payments time needs.
Know machine before purchasing Access to and use of latest 
Payments tax deductible technology.
 Lower up-front, down payment costs Lease payments are 
compared to purchasing. considered production 
expenses for tax purposes
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
$ / acre Own vs. Custom Hire--Combine
$160
$140
$120
Own
$100 Custom
$80
$60
$40
$20
$0
Acres
100
200
300
400
500
600
700
800
900
1000
1100
1200
1300
1400
1500
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 
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?

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-lea
se-or-purchase/
Thanks