Why a growing number of farmers are looking to hire
24th May 2021
Agriculture is one of the biggest and most important industries in the UK, but has some of the smallest margins to work within. There are many challenges to contend with in a tightening economy and this is a time where everybody is looking to reduce cash flow and achieve value for money. SW Hire explains the benefits of hiring machinery.
Over previous years, demand for machinery hire has increased due to rising machinery costs and market uncertainties. This can result in increasing levels of a farm’s capital being tied up in a depreciating asset.
Therefore, before outlaying hard- earned cash to be the proud owner of a shiny new tractor, telehandler or machine, it is worthwhile looking at the benefits of hiring rather than buying.
Machinery hire is increasingly becoming a popular alternative to purchasing and here are just some of the reasons why:
Cost: This is one of the most important factors at the forefront of every business’s decision-making process. By hiring machinery, you only ever pay for the time you need it, whether that be for a few days or on a long-term basis. Just hire it for your requirements and then send it back when you’re finished. Whether short- or long-term, there’s far less up-front outlay when hiring machinery and it is a useful way to free up working capital for use in other areas of your business, whilst also avoiding the need to take out finance to buy machinery outright.
Tax efficient: The cost of hiring equipment is 100 per cent deductible as a business expense, so can reduce your tax bill. Up to date technology and models: As plant is constantly evolving, hiring gives you the advantage of access to the latest machinery to get jobs done as efficiently and quickly as possible.
Precise budgeting: Hiring can help to give you a fixed cost for machinery operating costs throughout the season, especially when it is hired on an annual term.
Increased flexibility: Hire doesn’t commit you to one farming system; enterprises can be changed without having to sell and replace machinery.
Trial and comparison opportunity: If you are unsure about your specification requirements, hiring provides the opportunity to trial different machinery to see what is most suitable for your own needs, before making the decision to purchase the equipment.
Machines in the fleet have an average age of 18 months, which ensures customers can be confident machinery supplied will be modern, reliable and offer the latest technologies in the industry.
Machines are serviced and maintained regularly so that customers can expect the highest levels of safety and reliability. SW Hire prides itself on flexibility and has good working relationships with dealers across the country, to ensure additional service support.
The company has been providing machinery hire to farmers and construction companies nationwide for over 15 years, having been founded in 2003 by Simon Williams. Whilst studying at Harper Adams, Simon spotted the rising price of equipment for farmers and saw an opportunity for agricultural hire.
He then purchased his first muck spreader to hire out to local farmers, later adding trailers over the years. Machinery is now hired nationwide, from the company’s main yard just off the M4 near Chippenham, Wiltshire.
Going forward, the company is aiming for continued growth within the sector. Future plans include upgrading the workshop and office facilities to facilitate the year-on-year growth of the business.
