Selecting a Rented Farming Equipment and Machinery

Hiring the farming equipment and machinery is a famous option of using them for a short period of time

especially during the harvesting season and when applying fertilizers, herbicides, weedicides, 

and pesticides on the farmland. The producers can rent such agriculture equipment that is available

 with the neighbor, local dealer, or any specialized business organization that provides customized 

machinery for farming in their respective farmland for several operations ranging from planting, 

harvesting, or storing.

Rental Agreement for Farming Equipment and Machinery

 

A rental agreement is prepared to secure the machine for use in the farmland for a short period of time.

  The charges for the rental are usually decided on the basis of usage per acre, hour, day, week, month, 

or season. 

Rental agreements are different from the custom hire in the following ways:

• An operator is not provided with the rented equipment under the rental agreement. 

  The producer has the responsibility for operating and maintaining the machine on his own.

• A producer has to bear the expenses of insurance, property damage, maintenance, repairs, etc.

   on the machine, according to the rental agreement.

• Producers can control the running of the machine and use it as and when they want during the 

  agreement period. 

• Producers need to check if the machine is available with the dealers or not and if it is in working

   condition before proceeding with the rental agreement. 

Types of Rental Programs

The Rental Programs for machines are of two types namely, Pure Rental Program and Rollover 

Program. 

In a pure rental program, the owner who is the dealer of the farming equipment or machine rents it to 

customers for a certain time period or for a specific use, or until the machine is worn out or obsolete.

 It is cleaned and reconditioned each time it is brought back. At the end of its rental agreement, the

 dealer may offer it for sale as a used machine or retire it.

 

On the other hand, in the rollover program, a dealer agrees to rent a new machine to a customer for 

use during one season. When the season ends, the producer must return the machine to the dealer. 

In some of these cases, the operator or the dealer actually owns the machine and agrees to rent it 

every year to the producer. The producer also has the option to buy the used and old machine during

 the second season.

 

Disadvantages of Rental Agriculture Equipment 

When people use rental machines, they sometimes neglect the care and maintenance requirement of

 the machine, in such cases, the rental charges of the machine can a little high in order to cover the

repair, maintenance, and reconditioning costs. 

 

As a result, pure rental agreements machinery are not much popular. Pure rental programs are 

generally used for lawn, garden, industrial, and construction equipment wherein the rental charge are 

usually paid in advance. In the case of renting larger machines, producers are able to pay in parts at 

the time of returning the machine.