To Buy or to Lease Grain trailers – Your Best Option
Any decent farmer knows the various challenges that approach during harvest time and the many costs one can incur as a result of poor preparation for this period. One of these challenges for corn, wheat, and other type of grain farmers is movement of produce from the fields to the storage location of choice. Fortunately, grain trailers are available in the market for this purpose. After every harvest, however, every farmer is faced with the same question now and then; should they buy and own a grain trailer, or should they continue leasing the machine only during harvest period? The following are some factors every farmer can carefully examine in order to come up with an answer that is both efficient and within their means.
Operation scale factor
Many people leasing grain trailers have monthly payment stipulations. This means that you will have to pay for a month, or even two months minimum in some cases, for the trailers. If you are a small fish in the farming scene, you will probably finish your harvesting within some weeks, and then have to watch that piece of yard artwork you paid for sit collecting dust for the remaining days. In such a situation, you are probably incurring greater losses than you would have if you had owned the trailer. For people like this, a one-off investment in grain trailers is a better choice than leasing the property every time. You could buy new or even carefully select used grain trailers and keep them home for your periodic use. The best part about owning the trailer is that you can also get your teeth into the leasing business and make money off the trailer when you are not using it. Have you ever tried leasing this equipment just before harvest? You would probably see how scarce they are at these times.
For individuals operating large scale, sometimes, the best option is leasing the trailers. If you intend on doing several hundred kilometer rounds to and from your farm, your best bet is leasing a few trailers and reducing the period of overall harvest and transport.
Buying a used or even new grain trailer is partly a decision guided by cost. New grain trailers are not cheap but can offer many benefits immediately and in the future. Used trailers, on the other hand, should be sought after with care. When buying used trailers, it is important to have the equipment well inspected. Inspect the shocks, brakes, doors, lighting system, tires, and even the tarp fasteners. Remember, you may buy cheap, but the overall repair costs on the equipment adds up to tantamount buying a new one, or sometimes even more.
Some farmers find the alternative of owning the truck and just leasing the trailer. Whichever your cup of tea, you should put careful thought in the economics behind your decision.
Always remember, with many leased grain trailers, you may likely incur the costs of whatever damage the trailer encounters while on your farm. A good way to be avoid this problem is to lease earlier instead of waiting for trailers that are already worked up from other farms.