DLG e.V. - Machinery costs

Machinery prices decide about willingness to invest

By DLG

The current graphic of the month of DLG-Agrifuture Insights shows which factors especially influence the purchasing decisions of farmers of various countries.

As a result, the farmers in foreign countries are as a whole especially price sensitive with regard to the purchase of machines – more than half of the farmers surveyed name the machine prices as a very important purchasing criterion. In contrast to this, only 30 % of the farm managers in Germany place particular value on the purchase price. Here a large percentage of farmers is apparently more easily convinced with other criteria.

Important: spare part prices

Farmers in Russia, Brazil and South Africa are more sensitive to spare parts prices than average. There the machines operate under especially tough conditions and with an especially high capacity utilisation. The consequence is considerably higher wear, resulting in a greater demand for spare parts and therefore in higher follow-up costs to a machine purchase. The prices for spare parts therefore become an economically interesting factor and a very important parameter of the purchasing decision.

As a result, the maintenance intensity of the machines is an especially important purchasing criterion for farmers in Brazil and South Africa. The great deal of time required for machine maintenance means downtime. This in turn drives up the machine costs and has a negative impact on the profitability of arable farming. Spare parts costs and supply as well as downtimes then also result in a high degree of brand loyalty in these countries.

Saving money by optimising input costs

It is hardly surprising that the electronic equipment of the machines is of particular importance especially for farmers in Germany. In this country the farmers use electronics to optimise, for example, the yield of farm inputs. This has apparently also be recognised by farmers in Russia, who already noticeably follow the trend in these criteria. On the other hand, it is striking that for farmers in France, electronic equipment is considerably less important. The majority of farmers surveyed in France focuses on the purchase price an is also interested in keeping it low with as little equipment as possible.