In true farming fashion, the agriculture industry has seen its fair share of ups and downs this past year. Rent and interest rates remained significantly high, while crop prices were at a low. As USDA predictions for 2025 crop prices fall below the break-even point in Wisconsin, extension specialist John Shutske highlighted some things to consider if you are looking to buy or replace equipment on the farm in a University of Wisconsin-Madison Extension article.

Whether your machinery is getting older as technology is getting smarter, or you are outgrowing the size of equipment for your operation, equipment is ultimately a necessity on the farm. Machinery is a large investment on any farm, and the decision to buy new or used is often a big decision. “Buying new equipment can seem attractive and even exciting, but high prices and elevated interest rates may make the investment less feasible,” Shutske said. Because of this, used equipment can be a practical alternative as it allows you to save money and get tasks completed.

As you begin to search the market for a new piece of equipment, evaluate what your needs are for your operation. Be sure that you understand criteria such as field capacity, use, and horsepower requirements. “Ensuring the equipment is matched well with existing equipment can help avoid unnecessary costs,” the extension educator noted. Beware of technology compatibility and be sure that it pairs up well with precision agriculture software you may already have.

Compare and contrast the differences in costs when it comes to purchasing new, used, or hiring a custom operator to do the job. Ownership can be convenient, but it involves a deeper level of cost understanding, he said. You may also reap the benefits of longer warranties on newly purchased equipment, whereas used equipment generally does not have that benefit. Interest rates on new equipment are typically higher, make it a risk investment for farmers during times of uncertainty. Purchasing used allows for lower upfront costs and provides a bit more cushion during these times.

Regardless of which option you choose, preventative maintenance can also help significantly reduce costs in the long run. Prior to purchasing, Shutske recommended engaging with your local mechanic and service providers, reading and discussing maintenance schedules, and evaluating parts availability as critical steps to avoid a costly and frustrating surprise. Assess the condition of the machine that you are considering. If used, always request an operator’s manual and talk with the previous owner about the machine. Shields, lights, reflectors, and slow-moving vehicle signs should always be visible. “The presence of safety shields and other devices may also be an indicator of how well the last owner took care of their equipment,” he warned.

In times of uncertainty, it is crucial to take the steps necessary to avoid financial stress. Machinery on a farm is a necessity, but it doesn’t have to break the bank. Determine your farms needs and make a decision that will benefit the operation as a whole.