How do you maximise your return on investment before buying farm equipment?
Margins are tight and expenses continue to rise, so every piece of equipment you buy must earn its keep. Gone are the days when farmers and ranchers bought new equipment on a whim.
Knowledgable operators view equipment investments strategically. And that’s because the right equipment doesn’t just earn money by working…
It actually drives business growth by improving efficiency, reducing downtime and increasing throughput throughout your entire operation.
In this post:
- Equipment Investment Is Business Growth
- Calculating ROI On Farm Equipment Prior to Purchase
- Affordable Grain Carts Are Key For Harvest Efficiency
- Strategies for Buying Used Equipment That Maximises ROI
- Equipment Maintenance Increases Long Term Value
Equipment Investment Is Business Growth
Equipment isn’t simply a “nice to have” line item on your balance sheet. Every time you hit the gas pedal on a tractor, that equipment is either making you money or costing you money.
When farm operators look at equipment as a cost versus an asset, they miss out on opportunities to grow their business.
A grain cart that keeps your harvesting equipment moving while speeding acres per day skyrockets. Less downtime equals higher production. And higher production equals more revenue.
If you’re looking to expand your grain operation, browsing affordable grain carts for sale should be at the top of your to-do list. Operators who invest in used equipment that increases harvest efficiency will expand output and margins without unnecessary capital expenditures.
Grain carts that fit your operation perfectly keep combines rolling while transferring grain out of the header and into transport vehicles. Fewer idle hours mean more acres harvested per day.
Need more proof that investing in farm equipment is directly tied to expanding your business? The global farm equipment market hit $186.9 billion USD in revenue in 2025. The market is expected to grow 6.5% year over year through 2035. That’s significant growth. Farmers and ranchers are investing in equipment to stay competitive.
Calculating ROI On Farm Equipment Prior to Purchase
Every farmer should know how to calculate return on investment (ROI) before buying ANYTHING.
Here’s the breakdown:
Additional Revenue (helpfully reduced expenses) –> Total Cost Of Ownership / Total Cost Of Ownership = ROI x 100
Easy!
Anything over 0% is a win. Equipment is paying for itself.
However, many operators factor in additional benefits like:
- Lower labor costs. Efficient equipment requires fewer hands on deck to operate.
- Decreased maintenance fees. Newer equipment or equipment that better fits your needs will have fewer breakdowns.
- Increased bushels per hour. Getting more crop off the field faster equals a shorter, more profitable harvest.
- Resale value. Quality equipment retains its value longer than cheaper options.
If a used grain cart saves you two hours per day of harvest time, it will pay for itself in a year. That’s the kind of ROI that helps grow your business.
Affordable Grain Carts Are Key For Harvest Efficiency
One underrated piece of equipment that should be considered before investing in a harvesting operation is a grain cart.
Why? Because when your harvest equipment isn’t waiting around for grain carts to unload, you’ll harvest more acres per day.
Need proof that grain carts are worth the investment? The American Farm Bureau Federation released data that showed net farm income fell 22.6% from its peak in 2022 to 2024. That’s a $41.2 billion drop. Farming is a business and when margins shrink, operators cut expenses and optimize workflows.
Optimizing harvest efficiency starts with buying the right equipment. Don’t let your harvest equipment drive the revenue you generate. Instead, choose an affordable grain cart with these specs:
- Grain cart capacity that matches your combine’s harvesting speed.
- Fast auger speed equals faster unload times.
- Track vs tyre options depending on the terrain of your fields.
- Onboard weighing scales to help you monitor yields.
When you invest in equipment that works FOR your operation (not against it), you’ll see significant gains.
Strategies for Buying Used Equipment That Maximises ROI
There’s nothing wrong with buying used equipment. If done correctly, purchasing used equipment can net you 70-80% of the same performance at a fraction of the cost.
Here’s how to buy used equipment that provides maximum return on your investment:
- Know your operation’s bottleneck. Where are you losing money? What is slowing down production?
- Compare your options. Once you know what your operation is missing, look for that piece of equipment new, used, and refurbished.
- Buy off-season. Equipment prices rise and fall throughout the year. Purchase your equipment during the off-season and you’ll usually get a better price PLUS more inventory to choose from.
- Don’t forget to finance responsibly. Although interest rates have come down from their peak, they’re still above historic averages. Shop around for financing options and choose the one that’s best for you.
Equipment Maintenance Increases Long Term Value
Investing in your equipment doesn’t stop when you buy it. Protecting your investment long-term comes down to maintenance.
A clean, well maintained grain cart or tractor will always sell for more money down the road. Farm equipment should be treated like a rotating asset. You buy it, use it, maintain it, and sell it.
Maintaining that equipment properly is what allows it to retain maximum value.
Here are a few tips to care for your equipment:
- Pre and post season inspections. Catching small issues before they become big problems goes a long way.
- Documentation. Keep service records on hand. Those who buy used equipment from you will thank you.
- Proper storage. During the off-season, store your equipment indoors if possible. Each season that equipment stays outside, it loses value.
Equipment that’s well cared for lasts longer and is easier to sell at top dollar. That sale instantly becomes an investment that can be used to grow other areas of your business.
Wrap Up
Throwing money at the problem isn’t the answer.
Instead, focus your money where it will do the most good. After years of seeing equipment mistakes play out across the industry, here’s what consistently works when growing a business through equipment investment:
- Identify bottlenecks. Where are you losing money? What’s slowing you down?
- Calculate ROI on everything. Don’t guess. Do the math.
- Buy Used. Buy Smart. Balance new equipment purchases with used equipment from trusted dealers.
- Maintain. Equipment that’s cared for lasts longer and sells for more money.
Farmers and ranchers have faced tough margins for the past few years. Now more than ever, it’s important to spend money wisely and watch your business grow from there.