Land and Equipment

Farm land and equipment are the two most essential resources for an agricultural business. Use Penn State Extension’s resources to find out all there is to know about land and equipment such as acquisitions, renting agricultural land, regulatory issues, and maintaining farm equipment.

Buying and Leasing Farm Land and Equipment

Access to land is vital for producing livestock and crops and often the most valuable asset on a farm’s balance sheet. But is it better to lease your farmland or buy it? Acquisition and leasing have their pros and cons.

Renting agricultural land is much cheaper than purchasing it, and it is an affordable way to get into farming. Downsides of leasing are that it often involves a short-term contract, and your landlord could decide not to renew your lease or significantly increase the rate for renting their land.

The same question applies to leasing vs. buying agricultural equipment. Machinery and production equipment represent major costs that have been on the rise for several years. When deciding whether to lease or buy, bear in mind that the purchase price is only a portion of the equipment’s true cost.

You can use an equipment cost calculator to help you come to a decision. Partial budgeting is another tool you can use to assess the possible financial impact of purchasing new equipment.

Farm Equipment Technology and Maintenance

Agricultural machines have been designed for almost every stage of the agricultural process. Agricultural technology is among the most revolutionary and impactful areas of modern technology. At the same time, the basic technology of agricultural machines has changed little. Used tractors built since the mid-50s, for example, can still be an excellent all-purpose utility tractor.

For the modern-day farmer, it’s not just a question of having the most up-to-date machinery. Efficient machinery and equipment management means you have to have the right equipment when you need it for the least cost. Being able to maintain your equipment is crucial if you want to run your tractors and other machinery at peak performance.

In this section, find resources from Penn State Extension Educators on buying and leasing farmland and machinery, equipment maintenance, and emerging farming technology updates.