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Dreaming of building a more profitable farm business?
Every farming operation needs quality equipment to function. Farm equipment costs continue to rise each year though. It can be tough to justify buying that new tractor or truck.
But did you know the equipment decisions your farm makes can seriously impact your bottom line?
Grabbing affordable used grain carts and choosing the right equipment at the right price can save your operation thousands each year.
…and you don't need a huge budget to do it.
By the end of this article, you'll understand:
- How Equipment Purchases Affect Farm Profitability
- Why You Should Consider Buying Used Grain Carts
- The 4 Things To Look For When Purchasing A Grain Cart
- Top Tips For Lowering Equipment Costs
How Equipment Purchases Affect Farm Profitability
Most people understand that crop choices, soil health, fertilizer use and more have an impact on profitability.
But they often forget about the money spent before planting the first acre.
Equipment purchases are some of the biggest expenses on any farm. When profit margins are thin choosing the right equipment at the right price point is critical.
Let's use an example…
If a farm spends more than they need to on new equipment they drain their working capital. Working capital that could be used to invest in other areas of the business that generate revenue.
However, a farm that chooses quality used equipment keeps more cash on hand for the investments that matter.
That is the difference between breaking even and thriving.
Investing in a quality grain cart and keeping those costs low is one of the best decisions for any grain operation. Finding a quality grain cart from J&M at up to 75% less than the new price is a smart move. J&M offers some of the toughest and highest-performing grain carts on the market. Buying one of theirs used lets any operation take advantage of that proven reliability at a lower price.
It makes sense when you look at the numbers too. Average per-acre machinery expenses increased 25% from 2021 to 2024. That means the cost to buy equipment per acre jumped from $136 to $171. Add in the fact that equipment repair costs have risen 41% since 2020 based on Bureau of Labor Statistics data. You can see how these expenses eat into farm profits.
Buying Smart To Save Money On Equipment
Here's a little secret…
Some of the most profitable farms in the country are using used equipment. They aren't flying the newest tractors around either.
Why?
Because buying used equipment saves them money.
New equipment loses value the second it leaves the dealership. Used equipment has already experienced that initial drop in value. As a buyer you get nearly the same quality for less money.
Think about it like affordable used grain carts. A used grain cart does everything that a new grain cart does.
It transports grain from the combine to the truck. It allows harvest to continue without pause.
The only difference is the new one costs way more.
That extra money saved goes right back into the farm business.
And it's not just talk either. Farmers are expecting lower incomes in 2024 and many are going to have no choice but to buy used equipment. Whether that be new-to-you or purchasing from a dealer. Since new equipment costs are high, more dealers are seeing producers turn to the used market to find that perfect balance of affordability and functionality.
Genius.
Finding The Right Used Grain Cart For Your Farm
Used grain carts aren't all created equal. That is why knowing what you need and where to look are key to finding the right cart at the right price.
Here are a few tips:
Look For The Right Size
Grain carts are not a one size fits all kind of purchase. You wouldn't run a 16' grain head on most combines. The same mentality should apply to grain carts.
Know how much grain you will haul per harvest. Find that number and focus on the carts that meet your bushel requirements.
Focus on Quality And History
If a grain cart is built by a quality brand and hasn't been abused by the previous owner, you're in good shape. Try to avoid ultra cheap carts if you can. They will likely end up costing you more in repairs down the road.
Request Maintenance Records
Having a maintenance history gives you confidence that the used grain cart was well cared for. A lower price with no history is a massive red flag.
Check Tires And Augers
Tires and augers take the biggest hit on a grain cart. Both should be inspected prior to buying. Things like rubber cracks on tires and worn auger flights can be costly to repair.
Knowing What You're Buying Is Key
As with any used piece of equipment, knowledge is power. The more you know about the type of used grain cart that is right for your operation, the better your buying decision will be.
Lower Equipment Costs Everywhere
Picking out the right used grain cart is just one way to save money on farm equipment. There are several other tactics any operation can employ to reduce equipment expenses across the board.
Buy In The Off-Season
Wait until late winter or early spring to purchase equipment. Since less farms are buying in these months you will find better prices across the board.
Sell Maintenance, Not Equipment
Replacing equipment is far more expensive than performing routine maintenance. Developing and following a preventative maintenance plan will keep every piece of equipment running longer.
Compare Before Buying
Don't jump at the first deal you see. Reach out to multiple dealers and compare inventory. With so many online farm equipment dealers to choose from you'll have no problem finding the best deal.
Think Long Term With Every Purchase
How long will this piece of equipment last? What is the total cost of ownership? Asking these questions with every purchase forces you to think long term.
Any farm that takes the long approach to purchasing equipment will win.
Don't spend big just because you can. Think about how that equipment purchase will affect your operation down the road. If the numbers don't add up keep shopping.
Wrapping It All Up
Farm profitability is driven by countless decisions made each day.
The equipment chosen to fill a farm with is no different.
Equipment expenses are one of the largest costs on any farm budget. How those dollars are spent will determine success or failure.
Let's recap…
- Equipment purchases have a big impact on farm profitability
- Pre-owned grain carts are just as effective at saving time and labor
- Choosing quality equipment over something just to fill the need will save money
- Performing maintenance on current equipment will extend its life and protect the investment
- Think long when making any equipment purchase
Farms that come out on top year after year are the ones who make smart equipment purchases. Used doesn't always mean cheap. Take the time to learn as much as possible about your equipment choices and watch your farm thrive.