Tractors, implements, maintenance & depreciation — the silent capital drain on your farm, and how to reduce it.
Machinery represents 20-35% of total farm production costs when depreciation, maintenance, and financing are accounted for. Many farms are over-mechanized for their size.
A €60,000 tractor loses €12,000-€15,000 in value annually, even when parked in the shed.
Annual maintenance costs average 8-12% of machinery value — €5,000+ for a medium-sized farm.
Most farm machinery works less than 200 hours/year but costs are spread across 8,760 hours.
True costs of owning and operating farm machinery — beyond the purchase price.
For a 150-acre tillage farm, total machinery costs often exceed €40,000 annually. That's €267/acre before seed, fertilizer, or sprays. Many farmers focus on purchase price but underestimate the 5-year ownership cost, which typically equals 150-200% of the original price when all factors are considered.
How a €70,000 tractor loses value over its working life.
How hemp's minimal equipment needs compare to conventional crop production.
Required for all operations
Seedbed preparation
Precision planting
Herbicide & fertilizer application
Or contractor hire €100-€150/acre
Smaller tractor sufficient
Standard cereal drill with modification
Hemp suppresses weeds naturally
Munster Hemp provides harvesting service
For a 50-acre hemp enterprise compared to 50 acres of winter wheat, annual machinery cost savings range from €8,500 to €14,000. This doesn't include the income from hemp sales. The reduced machinery wear also extends the life of your existing equipment for other farm operations.
Match machinery capacity to farm size. Consider selling underutilized equipment and using contractors for specialized tasks.
Proper maintenance, storage, and careful operation can add 3-5 years to machinery life, reducing annual depreciation.
Incorporate crops like hemp that require minimal machinery passes and specialized equipment provided by the buyer.
Use hemp income to upgrade essential equipment, fund maintenance, or reduce machinery financing costs.
150 acres (100 tillage, 50 beef), €65,000 machinery debt, equipment working 180 hours/year average.
Reduced cereal acreage from 100 to 70 acres, allocated 30 acres to hemp. Used existing tractor with modified drill. Munster Hemp provided harvesting service.
"We sold our underused sprayer and second tractor. The hemp income covered our remaining machinery loan in 18 months. Now we're investing in a new tractor with cash, not debt." — Sean Murphy
Your machinery shouldn't own you. Hemp offers a way to reduce equipment costs while maintaining or increasing farm income. Less iron in the shed means more money in your pocket.
Book a free machinery cost analysis and hemp feasibility assessment for your farm.
