The Growing Demand For Equipment Leasing
2013 is expected to see a strong demand in new equipment acquisitions, which of course is good news for the equipment leasing industry. The farming and irrigation industry has seen more than ample growth over the last twelve months, and those advances are resulting in some pretty impressive perks for business owners.
“I have been coming to the Colusa Farm Equipment show for 30 years. Farmers made some money last year, so they are looking for some new equipment and new technology and they are going to spend some money this year,” said Vinny Allen of Valley Truck and Tractor Co. of Yuba City, which sells John Deere tractors, harvesters and other equipment.
“The orchard industry is strong right now and the commodity prices are very good. And as far as the rice farmers go, they are selling all their rice, so that part is good as well. So I am optimistic for the coming next few years,” he said. “We are lucky to be in the Sacramento Valley, which is very diversified. Our biggest sellers would be equipment for the orchard business and next would be the rice equipment and the big tractors and tillage tools for rice.”
Farm equipment leasing is just one of the many areas that look to benefit from a more positive economic outlook.
Farm equipment prices have remained somewhat stable over the last couple of years, with no dramatic increases that would normally be traceable to greater demand among buyers. Big ticket items can range in the $350,000 or more price range, with combines running as high as $500,000. While prices do go up every year as a result of the price of steel or rubber, there have been few changes in the overall price status in recent months.
Many equipment manufacturers are normally set up to build an item when it is ordered, however more companies are now running double shifts just to keep up with the equipment demand. Some companies are building pieces purely on spec, which means they have a pretty good idea that the unit will sell based on established buying patterns. More and more farmers across the country are finding themselves in a buying mood.
The Biggest Motivators
One of the biggest motivating factors is the new technological advancements that are built in to the newest farm equipment models.
“The technology has gotten to the point now where it is off the charts. Technology has improved all of this equipment and it has increased productivity. It doesn’t make any difference which product it is,” said a spokesperson for one company. “Technology has allowed the implement manufacturers to create better products. We are using products that didn’t even exist 10 years ago, that weren’t even thought of 10 years ago.”
LeaseQ is one of the leading providers of equipment leasing and financing in the country.