Farming is the backbone of the Australian economy.
As of February last year, there were 325,321 Australians working as farmers. Together, they produced 93% of the food on your table. Through good weather and bad, shifts in world economics and produce prices, and dwindling labour, they bandied together to contribute 3% to our nation’s gross domestic product (GDP).
But as a business, it is a difficult industry to manage. Payments are generally made once a year, as produce is harvested and sold. Budgeting is therefore a fine art; as you never know how big your next pay cheque will be. Providing your business with everything it needs to survive, therefore, comes down to planning.
GoGetta has long since stuck by our Australian farmers to help them run their businesses as smoothly as possible. And whilst we can’t control the weather, we can help you acquire the best equipment and vehicles for your property.
This is why we’ve put together our GoGetta Original eBook, Ploughing Through the Used Equipment Market.
Farmers can often find themselves making last minute decisions – sometimes giving themselves just a week turnaround from consideration, to purchase of equipment. And whilst we know how important it is to be able to jump on a bargain when one crops up, we also know that minimal forward planning and preparation for the season ahead can actually make it a more expensive exercise.
This guide is designed to educate farmers on the importance and benefits of forward planning, pricing, depreciation and availability equipment trends and other insights and practical tips from some of the industry’s leading experts.
We were lucky enough to receive valuable input from a variety of experts in Australian agriculture industry, including:
The Industry Experts
Brad Bland: Brad Bland has been involved in the agricultural machinery and finance industries for over 20 years. In 2014, Brad joined Mainland Finance as a broker specialising in all forms of agricultural finance from equipment finance and term agribusiness mortgages to livestock finance.
Rob Dingle: Rob Dingle is the Dealer Principal at Rocky River Ag Services, an agricultural machinery dealership based in South Australia. He has been there since its inception in 1994, and has over 35 years of experience in broadacre farming and agricultural machinery.
Ken Wilson: Farm Weekly’s award-winning senior journalist Ken Wilson has been involved in the farm mechanisation industry for nearly 40 years. He writes the popular Torque Talk column in Farm Weekly and is an on-farm specialist writer focused on machinery and cropping. He has a wide following particularly in Western Australia and is closely associated with the Farm Machinery and Industry Association (FMIA).
Ben Hibell: Ben Hibell has over 10 years’ experience in the agri industry as a dairy farmer, grazier and crop harvester before joining Slattery Asset Advisory in 2009. He’s a certified practising auctioneer and valuer with the Auctioneers and Valuers Association of Australia (AVAA) and has worked on equipment valuations and auctions nationwide. Ben manages Slattery Victoria’s monthly auction where he sees agri equipment change hands on a regular basis.
It is indeed true that there is no single rule when it comes to purchasing equipment or vehicles for your property or business. There are so many variables – budgets, equipment purpose, and location – but after years in the industry, GoGetta has found some basic rules to work by, which are explained in the eBook.
For example, did you know that 2,000 hours is the peak value of a machine before it starts to taper off? Yep, the experts agree that after four years it is generally the best time to move equipment on, as your machine will appeal to a wider market and this will increase your chances of selling it.
Or, did you know that the state from which your equipment was purchased from can heavily affect its price and resale value? There are practices that vary from state-to-state that can affect the resale value. For instance, in WA using liquid nitrogen in your boomsprayer is a common practice, but the chemical can be corrosive, which will cause the machine to depreciate more quickly.
This GoGetta original eBook will give you valuable insights on how much you should be spending, and what you should be looking for in a sale. We will review the major boxes you should be ticking when purchasing (spoiler alert: safety is always first!), as well as first-hand case studies on real life stories from farmers on the front line.
So learn from the experts and ‘measure twice, cut once’ when it comes to your equipment purchases.
Read about our customer’s business success through GoGetta’s equipment funding!