Mini Machinery Management Course - AgEx
In recent years, machinery costs have crept up and now rank among the biggest cost items on farms. They often fluctuate significantly even between farms in the same region because farmers have a wide range of options in managing their machinery portfolios. In past years, with high commodity prices and good margins, it was relatively easy to finance machinery, wants sometimes surpassed needs, and detailed financial analysis was only sparsely performed. As the outlook for commodity markets is currently less optimistic, many farmers are rethinking their equipment strategy to reduce and debt service commitments as well as to preserve working capital, so they can take advantage of the opportunities ahead.
Objective of the Mini-Course:
The objective is to provide an overview of the factors to consider in constructing and implementing the optimum machinery management strategy for farms, based on sound management decisions. A machinery management strategy includes how much equipment to have, how to choose the most favourable equipment financing option, whether it is owned and financed or leased, rented, and for how long it is held. Participants will see results of the spreadsheet provided in the main course that supports their ongoing investment decisions.
Dr. Joerg Zimmermann, GlobalAgAdvisors Ltd.
Dr. Larry Martin, Agri-Food Management Excellence Inc.