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Thread: Farmers buys less farm equipment, preferring loans

  1. #1
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    Default Farmers buys less farm equipment, preferring loans

    It feels like the disaster is...not coming. But they feel like there's one. Who knows why.
    Farmers are now more keen to rent and lease farm equipment rather than to buy them. That means a lot of things. That means the farmers' equipment are less likely to be old because when you don't own the material, you're more favorable to move to the newest product rather than when you buy and have an equipment, you would rather try to keep it as long as possible.

    If the market of detached pieces is put obviously in "threat", the whole manufacturing industry is worried by this new trend for farmers, while it means they will probably consume more their new products than before. So, why are they worried?

  2. #2
    Diamond Member Corzhens's Avatar
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    Default Re: Farmers buys less farm equipment, preferring loans

    Our government has loans for the farmers but the amount is targetted for seeds and planting materials but not for farming implements particularly equipment. With the plowing, the carabao is still being used by some farmers but the common goings on in farms now is the tractor that can be rented on a daily basis. A farmer wouldn't buy a farm equipment unless he has a vast tract of land which can benefit from his tractor. For a farmer with only 5 hectares to till, it is more economical to rent than to buy.

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    Default Re: Farmers buys less farm equipment, preferring loans

    Farm equipment is very expensive, even used. And many farms barely turn a profit, even the big ones. I have known a lot of farmers, and they never seem to have much money. They are generally very frugal and wanting mend rather than pend. In some cases, renting a piece of equipment you don't need often may very well be a lot more affordable than buying it outright, even used. They also may borrow equipment from other farms. Further, they may purchase a piece used and continue to mend/repair it until it is no longer capable of use.

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    Default Re: Farmers buys less farm equipment, preferring loans

    Well even though in the scenario that you lay out it seem to benefit the suppliers and the farmers, to an extent, I think that the change in production or consumption itself is what is driving the stir. Anytime you have an industry that has been around for a long time, like agriculture, you will find a greater resistance to change then you will at other business in other industries, and understandably so. Agriculture is a very interesting area of our economy and public policy, and farmers are very aware of things and how changes affect them.

  5. #5
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    Default Re: Farmers buys less farm equipment, preferring loans

    I wouldn't see it as too worrying a trend to be honest. For thousands of years farmers and farm workers have leased equipment from more wealthy landlords, it's more a reflection of the system as a whole. I would be more concerned about agriculture, logistics and supply chain companies choosing to rent land and property, and therefore investing in no genuine assets at all, and only liabilities. In our everyday lives, it's common to rent or lease items like choosing to have a cellphone contract rather than own a smartphone outright, which makes upgrades more easily accessible - same goes for farming equipment. As technology moves faster the tendency is to lease rather than invest in something with is going to be outdated within a few years. Land is a genuine, and usually appreciating asset however, so forking out to buy your own property is an investment. Agricultural equipment, not so much.

  6. #6
    Diamond Member Corzhens's Avatar
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    Default Re: Farmers buys less farm equipment, preferring loans

    We had been to the province last month and we noticed the modern tools being used by the farmers. Related to this thread, we learned that there is now a business in the province of renting equipment to the farmers. One is the owner of 2 tractors who seems to be well off with his earnings. All the other farmers near his farm always rent his tractor on a per day basis. During the planting season, his tractor would be working from 6am to 5pm with no rest day. The operator of the tractor is the owner himself. Farmers here have abandoned the thought of having their own tractor because it is very expensive.

  7. #7
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    Default Re: Farmers buys less farm equipment, preferring loans

    Hie cafewen as you are saying is very correct.
    Today,tractors are used for a wide range of tasks, but many farmer,s don,t have their own tractor for farming,
    Because they don,t have money to buy their own, without money they are helpless.
    I got list of many tractor company which provides good services to their farmer http://companiesinindia.in/tractor-companies-in-india

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    Default Re: Farmers buys less farm equipment, preferring loans

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