Budget Strain
Coping With the High Cost of Equipment
How to Stay Competitive and Responsible in Today’ s Market
By Steve Sniff
Few events in history have had as devastating, far-reaching and long-lasting effects as the COVID-19 pandemic which began in early 2020. Nearly five years later, those effects are still being felt in virtually every facet of human society. Like most industries, agriculture was hard hit, driving already high prices of farming equipment even higher. While costs have moderated somewhat over the last few years, they still have not come down to pre-pandemic levels.
Although raising prices in response to rising costs has left many small-to-medium businesses( SMBs) with the unpleasant feeling that they are becoming“ part of the problem” instead of“ part of the solution,” it’ s good to keep two things in mind:
First, everyone faces similar challenges. Therefore, nearly everyone can relate. As someone once said,“ We’ re all in the same boat. Sometimes we row, sometimes we rest. Just don’ t try to walk on water.” In other words, maintain a balanced view of the industry and don’ t make things harder on yourself than necessary.
Second, agricultural practices are changing in response to consumer and government demand. Adjusting one’ s own farming practices to align with these trends can help mitigate the anxiety resulting from having to cover higher equipment costs. We will be discussing those things in this article, as well as addressing the question of whether to buy, rent or lease machinery.
In addition, we will get some insights from an expert in the field of purchasing revenue-generating equipment. But first, let’ s look at what factors contribute to the high cost of equipment for SMBs. These costs have always existed, but they are more evident now due to the economy. However, they don’ t create a reason to be overly concerned. Just being aware and familiar with them helps to keep everything in proper perspective.
12 | 515-574-2341 | 515-574-2189 | January 2025