Renting farm equipment saves money for some farmers

Siemens Says  – So much of my work as a farmer’s advocate and farm journalist continues to focus on encouraging farmers with new ideas, startup ventures, and last but not least, the young farmers trying to get a foothold by working not just harder, but smarter too. This often means doing several jobs like farming and helping with the family farm and starting another business that helps other farmers.

Through Twitter, I get all kinds of requests, or at least tweets and retweets, where someone nudges me in a certain direction, offers me their idea, or simply wants more exposure for something they think could help others. With a combined total of 17,000 followers on both Twitter and LinkedIn, a weekly publication like this one, and other farm papers, one can begin to get certain requested messages out there. Having come to that point where I’m obviously closer to the end of my career than say the beginning, I can pick and choose even more so the causes, projects, and people I like to support.  

Duane Thiessen who lives in Morden, MB, and farms with his father and brothers at Crystal City, MB is one such entrepreneur. Farming 300 acres together with the family farm, he also started a farm equipment rental business under the business name of Thiessen AgriVentures and Flaman Rentals. The rental business he started on a few years back, 2013.  

“We’re a farmer rentals dealer and our aim is to provide a trustworthy service of clean and well-maintained equipment for rent for the progressive farmer,” said Thiessen. “Also, equipment that will operate in many conditions. Then, constantly striving to stay up to date on agronomy and farming trends in the ever-changing agriculture industry.”

When asked about who he targets, he admits it is hard to identify realizing that many of the bigger operators like to buy and own their own equipment, if they used once or twice a year and stands for the rest of the time.

Thiessen is there to help that farmer who suddenly realizes he needs a special piece of equipment but doesn’t want to buy it just then. That farmer can call Duane, pick up the piece of equipment whether an extra tractor for the day or even for the half day and then pays the rental cost accordingly.

“For most guys, it doesn’t pay to buy these things. Why not rent it and save that capital and take the 100 per cent tax right off it as a rental? It’s not standing around for the rest of the year,” he said. “I’m taking that risk and being able to rent it out to somebody else, then when the first guy finishes using it.’

When talking about his farming operation, Thiessen said it isn’t a fully-partnered business but where they work together using the well-used system of being the extra help during the business time and getting the others to work his land. It also works well with rotating crops. Duane is planting wheat and canola on his 300 acres and the others planting other crops as the rotation calls for.

“Personally, I’m growing wheat and canola, but no soybeans, but the farm is. We all work together, everything’s just worked together as one family, but with separate economic entities,” he adds.

When we talked last week, as the temperatures started warming up, he felt there is a good attitude amongst farmers.

“Well, I think it’s very good. Talking to them more, been getting some calls for rentals. The thing is just they aren’t quite there yet [re field conditions and soil temperatures] and it’s just getting going this week, so basically most guys and preparing,” he said. “It’s just a touch wet in places there still. Whenever it rains here, just a little trickle and you start to see the water come out from underneath. That water table is right up there. You also need to be careful where you start to go through a low spot but realize you have to go around.”

Thiessen said renting is becoming a very good option for sourcing occasional use or high priced equipment.  Renting equipment is a 100 expense write off.

“You have no capital outlay and zero depreciation to worry about.  At Thiessen AgriVentures – Flaman Rentals we help the farmer/renter out by providing quality well-maintained equipment/trailers.  Why spend $150,000 on a piece of equipment that just stands there for most of the year just depreciating?  By renting that same equipment, you spend approx. $10/acre, that’s only $10,000 on 1000 acres use and there isn’t even interest figured into the $150,000.  Using this simple example, $10,000 is small compared to the cost of the equipment.”

As I said at the beginning so good to see one young farmer setting up a business to help other farmers.   

As Duane’s slogan says,  “Why buy when you can rent?  Rent today from Thiessen AgriVentures – Flaman Rentals.  Call or message me at 204-825-0170 to book.”