Sharing farm machinery or equipment with another farmer is the latest trend to lower your debt burden of maintaining and owning it. By splitting the costs and use of farm implement is a way to improve financial benefits to the bottom line and may also give you back extra hours in long days. There are various setups where an equipment sharing agreement works. It can be between an elderly farmer and a farmer in the initial phases of their career. It is possible that you need the latest equipment or an upgraded model of tractor or farm equipment, but you are at a point where making that investment may be too late in your career. In this situation, you can partner with another farmer who is a beginner or in the middle of a farming career or even you can rent the machinery or equipment. This would be the best choice for an older and more mature farmer so that can continue farming using modern technology equipment for a little longer and do not need to make those high equipment investments. The expenses of jointly owned machinery can be shared equitably. There are many things such as the getting hold of equipment, costs of maintenance, insurance and storage. Put all the things on your agreement in writing so that there are no chances of any miscommunication. You may also take help of an attorney look at your agreement and make sure that the words and language are easy to understand. Often people may agree to something, even put it on the papers but may later realize the terms or language is not as justified as it should be. So it is suggested that whenever you plan to share or rent a farm tractor, machinery or equipment, you should have a clear deal on papers to avoid any disagreements.
2 Comments
8/30/2022 08:01:56 am
I want to make sure that I take good care of my farm. It makes sense that I would want to ensure that I have the right equipment for it. I'll have to see if I can find a way to jointly own some machinery, because I can see how that would be more cost effective.
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I like that you suggested partnering up with other farmers who would need certain pieces of equipment to help each other buy them when both of you have limited financial resources. I can imagine how helpful it would be for your operations when you use the latest cattle equipment or any type of machinery out there that you need. So this idea can be a huge help to ensure that you also get the best return on income when you supply the best products to your clients.
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Hi There!My name is John. I am from California, western USA. I am living here since my childhood and currently working here as a Marketing Executive in a local Agriculture and Farm Equipment exporting company. Archives
September 2020
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