Max Armstrong shares considerations and guidance for buying new farm equipment.

January 27, 2023

Max Armstrong talked with David Kohl at the Farm Futures Summit about replacing farm equipment. He suggests prioritizing by color (not of equipment itself). Use the stoplight approach: green is a high-priority need, yellow is need or want and red is definitely a want. The red light purchases depend on cash flow and liquidity. He also says to consider repair cost, and to consider the mechanic and if they can repair new and old equipment. Also consider tax implications. Managing equipment costs is key to farm profitability, says Kohl.

Max Armstrong's Farm Progress America is a daily look at key issues in agriculture. It is produced and presented by Max Armstrong, veteran farm broadcaster and host of This Week in Agribusiness.

Photo: Jonathan Kirn/Getty Images Plus

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