By Jamie Martin
A new study from the Equipment Leasing & Finance Foundation shows that the rising cost of farm machinery is leading many U.S. farmers to shift their equipment strategies. Instead of buying new models, producers are increasingly turning to retrofitting existing machines or exploring the used-equipment market.
The study, part of the Foundation’s Vertical Market Outlook Series, explores agriculture’s current state and future needs. It examines a wide range of factors influencing the sector, including farm profitability, labor issues, regulations, climate change, evolving diets, and international trade.
Foundation trustee Will Tefft noted that adaptability is crucial. “The flexible solutions, high-touch relationships and equipment expertise the ag sector requires present ample opportunities for the equipment finance industry to support this critical U.S. industry,” he said.
Technology and sustainability are highlighted as important forces shaping the future. While new innovations in precision farming and sustainable practices promise efficiency, the high cost of new machinery remains a barrier for many. Retrofitting older equipment offers a practical balance, giving farmers access to improved tools without the heavy financial burden.
Prepared by research firm Big Village, the report is the 13th in the series and is available for free online. By providing insights into both challenges and opportunities, the study underscores how financial flexibility and smart strategies will help U.S. agriculture remain resilient.
Photo Credit: istock-dusanpetkovic
Categories: National