It takes the right investment to grow a successful farming operation. From machinery and equipment to the tools needed to improve productivity, having the right resources at the right time can make all the difference when you want to achieve a successful harvest. With the new production season approaching, September is the ideal time to review your finances and plan accordingly.

AgLeaseCo (Agricultural Leasing Company Zambia Limited) is a licensed non-bank financial institution providing innovative leasing solutions for the agricultural sector.

The friendly team can help you access the equipment you need through tailored lease agreements, which gives you the opportunity to invest in your farming operation while managing your cash flow.

Whether farmers want to upgrade their machinery, invest in new equipment, expand their production capacity or improve farm infrastructure, AgLeaseCo can help them turn their investment plans into reality with tailored lease solutions. By planning their finances carefully, farmers can make productive investments without putting unnecessary pressure on their cash flow.

How it works:

• Choose the equipment type, size and quantity that best suit your needs.
• Agree on a lease period of between two and five years.
• Pay a minimum 25% down payment and AgLeaseCo will finance the balance.

Leasing can preserve working capital

Leasing gives farmers another way to acquire productive equipment without the hassle of paying the full purchase price upfront. Instead of committing a large amount of harvest income to one asset, a lease allows the cost of the equipment to be spread over an agreed period.

For farmers who want to improve their machinery fleet while protecting their available cash, this can be an attractive option. Farmers can put the equipment to work while retaining more capital for inputs and day-to-day operating costs.

This solution can also be useful when the newly acquired equipment is expected to generate additional income.

When does buying outright make sense?

Buying equipment outright can make sense when farmers have sufficient cash reserves after the purchase. Therefore, they do not expect the investment to compromise their working capital.

It may also be suitable when a farmer has identified a machine that will be used extensively for many years and has the financial capacity to absorb the full cost of ownership.

Smart machinery investments for Zambian farmers

1. Invest in machinery when the farm is losing time or money without this machine.

If planting is being delayed because equipment is unavailable, a tractor and planter may offer a better return than investing in machinery that is only occasionally used.

2. Look beyond the tractor itself

A tractor becomes considerably more useful when matched with the right implements. Depending on the farming operation, investments could include a planter, ripper, harrow, plough, boom sprayer or trailer.

3. Consider machinery that can generate additional income

If there is sufficient demand in the surrounding farming community, machinery can become more than a farm asset. A tractor, planter, ripper, sheller or thresher can potentially be used to provide contract or mechanisation services outside the farmer’s own fields.

A Zambian farmer can expand his own production while generating additional income by providing/hiring mechanisation and threshing services to other farmers.

4. Do not overlook post-harvest equipment

Investment should not stop once the crop is out of the field. Shellers, threshers, trailers and other handling equipment can help farmers process and move crops more efficiently. This can be particularly attractive where post-harvest services are limited.

5. Match the machine to the size of the operation

Bigger is not always better. A machine should be large enough to complete the required work within the available planting or harvesting window, but not so large that repayments, fuel, maintenance and depreciation become a burden.

For smaller farmers, cooperative ownership or hiring machinery may sometimes make more financial sense than owning a large machine outright.

Contact AgLeaseCo on (+260)765-647-864, (+260)964-809-776, (+260)964-712-668 or (+260)760-060-508, send an e-mail to info@agleaseco.com, chinso@agleaseco.com or sarah@agleaseco.com, or visit www.agleaseco.com and let the team help you finance the perfect tractor for your farm.