Farms have become quite a bit more technologically advanced than they were in the past - with new agricultural trends intersecting with advances in technology. Key Equipment Finance vice president Justin Woodward wrote about financing the modern-day farm in Spudman.
Bringing innovation to the fields
As new technology emerges, farmers are finding innovative options to upgrade their operations for profitability and sustainability. Woodward wrote: “Data, drones, connected sensors and renewable energy resources are all emerging technologies that make sustainable and profitable farming viable.”
Woodward pointed out research from McKinsey & Company that shows connectivity in agriculture has the potential to add $500 billion in additional value to the global domestic product by 2030. Artificial intelligence, robots, drones and more are being used in the industry for everything from production to processing and even analytics, according to Woodward.
Funding options for farmers
Woodward wrote about creative options for farmers to find capital. “Equipment financing makes innovation both possible and practical, allowing farmers to acquire the technology and equipment needed to realize a more sustainable business model.”
Some of the funding benefits Woodward mentioned include enhanced cash flow as a way to acquire assets that can then generate revenue; credit conservation as a way to preserve your working capital; flexibility to align payment terms with your budget and cash flow; and, 100% financing that can bundle everything from equipment to software, sales tax, labor and more into one payment plan.
Woodward also mentioned sustainability as a key feature of financing since technology upgrades can greatly enhance a farm’s ability to promote a sustainable enterprise. Scalability also comes into play. “Each of the technologies mentioned in this article can reduce costs, increase yields and/or improve efficiencies,” he wrote.
Choosing the right team
Woodward wrapped up the article by highlighting the importance of choosing the right lending team. For these specific types of upgrades, he encourages customers to look for a team with knowledge of farming and agriculture, a proven track record in lease structuring, a clear understanding of your business, a reliable source of capital and a creative approach to big-picture opportunities.
Woodward has over 22 years of experience in the equipment finance industry and is based in Boise, Idaho. Click below to read the full article in Spudman.