There’s a lot to consider when you buy a new machine. Will it do the task it’s intended for? What will its residual value be at the point when it is ready to be replaced? Most of all – can you afford it?
Determining what is and what isn’t affordable is never easy, however for all farming businesses there is a level of investment that is appropriate to their size, enterprise spread and profitability.
According to Gary Markham, director of agriculture at accountancy firm Grant Thornton and author of the book A Blueprint for Machinery Management, most arable farms will have a capital cost of about £568/ha (£230/acre) excluding fixed assets such as buildings.
Read the full article here.