Farming is a capital-intensive business; just peek inside any farmer’s quonset.
Gathering up the right components of a machinery complement is one of the challenges facing young farmers as they build viable businesses.
But each of the four groups of young farmers revealed by The Western Producer-Angus Reid Group survey has different ideas as to which machines they will, or won’t, invest in during the next five years.
Overall, Innovative Investors are willing to sink more money into shiny, new machines. Concerned Operators are cautious buyers who lean towards used equipment, while Optimistic Traditionalists and Progressive Producers fall in the middle of the spectrum.
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Interestingly, the prospective buying habits of Progressive Producers mimic those of Concerned Operators more often than not. But remember, this group of young farmers is more likely to use custom operators than any other. They’ve decided they need what the machinery can do, but can do without its fixed costs.
Take air seeders, for example. Nearly 80 percent of Innovative Investors are likely or somewhat likely to buy one within the next five years. Nearly 80 percent of Concerned Operators are just as sure they won’t be buying one.
Nearly half the Optimistic Traditionalists are quite sure an air seeder will be on their machinery list, but just 30 percent of Progressive Producers say it is a likely or somewhat likely buy. The rest in this group are sure it won’t be on their list.
