The dramatic increase in the cost of machinery ownership over the last few years has left farmers with little enthusiasm to continue buying, despite the slight but encouraging rise in commodity prices.
Machinery manufactures are obviously well aware of this, but their hands are tied by increased production costs and the inflation in wages and salaries being a major pressure that has negated any fall in steel and chip prices.
These factors have combined to create a situation where retail prices for farm machinery have restrained market activity.
Kverneland Group in Ireland has responded with new finance deals which cover the whole range of its equipment.
The more notable offering, is a fixed term finance payment of 0% interest up to a period of three years on 100% of the selling price, including VAT.
This encompasses the total price over the full-term of the deal.
More deals from Kverneland
In addition to this, there are several other finance options including a 1+4 Annuals payment, which attracts 1.5% flat rate on 100% of the price including VAT.
Managing director at Kverneland Group Ireland said: “It’s clear there’s a need for continued investment in efficient and effective machinery for sustainable farming – that goes without saying, but the burden can’t all be on farmers.
“With these schemes, I’m confident we can give access to the best in agricultural machinery with the security of interest free finance.”
He also suggested that by taking up these finance schemes, farmers and contractors can improve operational efficiency through the purchase of the latest implements, rather than waiting for their present fleet of machinery to become worn and outdated.
The growing trend towards minimal tillage systems, a trend that is being encouraged by governments, will often require the adoption of equipment focussed on shallow cultivation.
By helping to fix repayments at a lower level, Kverneland believes it is providing a positive incentive for farmers to keep abreast of modern methods.
The finance offers will end on June 30 of this year and does not effect the standard two-year warranty.