Buying farm machinery can be exciting but, considering the expense, it can also be confusing and risky.
When should you consider upgrading? Do you need to own your gear, or are there alternatives? And what do you need to consider when you’ve decided to invest in new equipment?
The BCG Future Farmers Expo on July 5 will tackle these questions during a session on economic thresholds of owning, co-owning or contracting machinery.
Farm 360 consultant Simon Craig said: “Traditionally, return on investment has been the measure many use to determine machinery investment strategies, but this doesn’t take into consideration external factors, like harvest logistics, which are hard to quantify.”
Mr Craig will present local examples and identify what should be considered when investigating different machinery investment options to ensure the arrangement is economical for your business.
“For a typical business, looking at the longer-term costs and benefits needs to be taken into account, bearing in mind the substantial investment,” Mr Craig said.
If you are considering owning machinery, is it compatible with the current and future size of your cropping program? Do you have the skills to maintain the equipment, or access to expertise nearby? You may also need to consider complimentary investments such as additional on-farm storage or haulage to reduce logistic delays.
When investigating contracting or leasing, consider availability, reliability and expense as delays in operations can be costly. When considering sharing equipment with a neighbour, clear documentation needs to be in place regarding access, repairs and maintenance, fuel, operations, insurance and storage.
The expo will be held at Birchip P-12 School from 11am-5pm on July 5. Entry is free for BCG members and $50 for non-members.
A tapas-style dinner will follow the event from 6pm at the Birchip Hotel – tickets are $30 per person and can be purchased by phoning BCG on (03) 5492 2787 or visiting www.bcg.org.au.
