Are You Planning To Start farm machinery and equipment

The toughest thing associated with starting a farm business is the procurement of vacant farmland. This rule is farm supplies applicable both for agriculturists looking forward to plant crops or raise farm animals. Due to spreading of suburbs out of the countryside, it is turning out to be difficult to find vacant farmland with sufficient contiguous acres for running an agricultural business.




This type of land is highly expensive, particularly when an individual is looking for a good Return On Investment per acre agricultural supplies from planting crops. Land is not a depreciable asset when it comes to income tax point of view. So, there will not be any reduction in the money to be paid towards income tax. However, interest paid towards agricultural land is fully deductible.



Most of the banks need that purchasers of vacant agricultural land should make a minimum of 30 percent of the cost of purchase as downpayment. As compared to mortgage rates, the interest rates on vacant land is always higher.




Machinery: Operating an agribusiness needs a large investment of capital. Initially, money is needed for acquiring land, then for the required machineries like tractors and other farm supplies.