There are several agricultural equipment business ideas out there, but to help you decide which one would be most profitable for your venture and the best decision for your location.
We offer this list of agriculture equipment business ideas that you can launch this year. It will give you a great start on how to start your own business, or you can become an investor in one.
No matter what type of business you choose to become involved with, the first thing to determine is what you are planning to specialize in.
If too many variables are involved, it might make it very difficult for the business to be profitable. This can also make it very risky for your investment.
For example, if you have a business that specializes in selling both lawn mowers and tractors and other machinery, then even a small equipment problem or malfunction could leave your customers feeling dissatisfied. It may even cause them not to come back to do business with you again. So it is always better to specialize in a line of business.
List of Agriculture Equipment Business Ideas
1. Tractor Dealership
A person who buys sells, and services tractors. This is a common business and many people have chosen to invest in this type of business because it is very profitable and still allows for other diversified revenue streams. There are even opportunities for being a dealer in multiple types of tractors.
2. Farm Equipment Manufacturers
An agriculture equipment manufacturing business can leverage low commodity prices and government subsidies to make a heavy profit.
In this agriculture equipment business, if you don’t want to handle all the required production activities, you can source equipment parts from another company to minimize your overall manufacturing costs.
3. Farm Equipment Distributors
An agricultural machinery distributor re-sells machines manufactured by other companies or that have been rebuilt after being purchased second-hand.
Just because they’re usually an allowance for customers to negotiate, you can earn more than different customers will always buy at different prices.
Another interesting part of this farm equipment business is that the value of each piece of equipment in your inventory increases over time when sales are not moving as expected.
4. Wagons or Trailer Dealers
Wagons (or trailers) are used for transporting all kinds of agricultural equipment and materials. As a dealer, you can choose just to buy and sell wagons, or you can choose to lease them to farmers. The profits here are determined by your mode of operation, however, the outright sales have higher profit margins.
5. Agricultural Equipment Rental
If a buyer wants to buy a tractor or any agricultural equipment but doesn’t have the funds to purchase it, the tractor rental option is the best alternative, and that is why this business opportunity is very lucrative due to the amount of funds required.
So if you invest in this business, you can earn very well in a short period of time.
You can also create an app for farmers to use on their phones, tablets, or desktop computers that enables them to request the rental and download payment terms.
6. On-site Farm Implement Dealer
A farm implement dealer is responsible for locating and selling all the necessary parts and accessories needed to keep tractors, combines and other agricultural equipment working properly.
They help their customers by keeping their machines running efficiently without affecting operations as well as by providing parts in case of any malfunction of the equipment as a result of improper maintenance or failure caused by wear-and-tear.
7. Sowing Equipment Rental
You can become a specialist in offering only seeding equipment to farmers for sowing the seed for the next season’s crops.
This is a lucrative business, especially if you are able to do it from where you live on or near farms and if you have access to large or short-tempered machinery used in sowing the seed.
8. Tractor Service Center
A tractor service center provides repairs, maintenance, and services to agricultural equipment, and can also sell replacement parts to farmers or dealers who do not have specialized repair facilities.
They may hire their own technicians or contract out their repair work to other professionals including the equipment manufacturers themselves (many of which have on-site service centers).
9. General Equipment Mechanic
A mechanic who fixes agricultural equipment and machinery. They may specialize in the machinery itself, or they may specialize in fixing machinery brands only.
Sometimes, they can pursue both branches of specialization by finding out what kind of machinery is present in the area where they live and work and what type is most often needed for repairs.
To offer this service, you will need to have the proper certifications needed by your state to operate such a business as well as enough funds to buy the necessary tools and equipment required.
10. Ploughs and Harvester Rentals
Looking at the demands of these two pieces of equipment, ploughs, and harvester rental businesses would be an ideal choice.
The reason why this is so is that most large-scale farmers ploughs and harvesters yearly to fulfill their needs; thus, something like this agriculture equipment business opportunity can mean that you can be the one to make money for those people.
Other Business Ideas
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Takeaway
Some of these ideas may be suitable for you, whereas others may not. However, you can generate agricultural equipment sales or rental income as part of any existing business or with an existing small farm so that you can become more profitable overall and increase your revenue streams.