Farm startups need money.

LOTS of money. Land prep, seeds, fuel, labor…oh, and equipment? Purchasing machines and implements is one of the largest startup expenses from day one for new farm owners.

And here’s the problem:

Buying new equipment is expensive. Really expensive.

Tractor prices rose 287% since 1990 for a standard 200-horsepower model. That’s more than double inflation over the same period. For farm startups looking to keep initial costs down, purchasing new equipment can price you right out of the startup game.

Buuuuuuut…

Some of the savviest farm startups are bypassing the new equipment market altogether. They’re cutting significant expenses by purchasing quality used equipment from day one – and gaining a huge advantage against the competition.

You’ll learn:

• Why buying new farm equipment will sink your startup budget
• Why quality used equipment is the way to go
• All about multi-spindle rotary cutters and how to find them used
• What to inspect before purchasing used equipment
• How to thoughtfully build out your used equipment inventory from day one

Why Buying New Equipment Is Eating Up Farm Startup Budgets

Farm machinery costs are obscene.

Machinery costs jumped 25% between 2021 and 2024. That’s $136 per acre jumping all the way up to $171 per acre. Add in the fact that farm input costs like chemicals/fertilizer/seed are still elevated, and farm budgets are getting squeezed on both sides.

Farm income got crushed in the same period, dropping nearly 20% from 2023 to 2024. When you’re in startup mode, that’s not a gentle landing. That’s a wall.

Bear with me…

Farmers who just started producing (-ish) are even more financially vulnerable. Starting producers are more likely to have farm debt than established operators (56% vs. 48%) and carry higher leverage with debt-to-asset ratios nearly double that of experienced producers.

Want to guess which group feels a large equipment purchase pillage down to?

Beginning farmers. Buying new equipment when you’re just getting started isn’t just costly – it can bleed you dry.

Buying Used Equipment Is the Only CAP EX Strategy That Works

Used farm equipment is the new black.

Gone are the days of cutting your teeth on a rusty old beat-up farm implement. Because here’s the reality of the current market for savvy farm owners:

Quality used high-horsepower tractors are selling for 18-23% less than this time last year at peak prices. Buying high-quality late-model used equipment right now comes with a real cost savings. More inventory available, more selection, and lower prices across the board.

Buyers are sitting squarely in the driver’s seat right now.

And it’s not just tractors, either.

Lets Talk Multi-Spindle Rotary Cutters

Brush control. Pasture management. These are things all farms, regardless of production focus, must do.

And where does a multi-spindle rotary cutter come into play? Simple. A multi-spindle rotary cutter utilizes multiple blades spinning in unison from a single gearbox arrangement. Cutting width is increased without significantly increasing tractor power requirements compared to older single-spindle styles. They excel at tall grass, thick brush, and cutting through heavy crop residue. If you have livestock or run a mixed-use farm, a multi-spindle rotary cutter is one of the most useful implements you can own.

Sourcing a used Bush Hog rotary cutter can help you cover pasture management needs quickly and efficiently without breaking the bank on new equipment. Bush Hog is a well-known name in the rotary cutter game and their used models maintain value exceptionally well with proper maintenance.

Focusing on the multi-spindle style is the smart move when starting the search. The beefy gearbox assemblies paired with commercial-grade decks on these units are built to last. Purchasing a used multi-spindle rotary cutter from a reputable seller isn’t just smart. It’s idiot proof.

Inspect…

• Deck condition – Look for cracks, excessive rust, and old weld repairs.
• Gearbox – Oil leaks? Check fluid levels first, then investigate any signs of leakage.
• Blade wear – Dull or chipped blades are cheap to replace. Don’t let them scare you away.
• Slip clutch engagement – Make sure it snaps ON and OFF properly when under load.
• Hitch and lift linkage – Look for play or excess wear in all pins/bushings.

When maintained properly, a quality used multi-spindle rotary cutter can outwork many new models and take years of abuse. You just need to do your due diligence beforehand.

Building Your Used Equipment Wish List From Day One

Buy used. Always buy used.

But that doesn’t mean you need to purchase every piece of equipment right out of the gate. The most important thing you can do when thinking about your equipment strategy is establishing priorities. What are the pieces of equipment that will drive the most value for your operation? And what can wait?

For most small-to-mid sized farm startups, a priority list looks something like this:

1. Tractor
2. Multi-spindle rotary cutter (Pasture & Brush Management)
3. Tillage Equipment
4. Sprayer/spreader
5. Front end loader (attachment)

Stretching your initial dollar towards more “big ticket” items by buying used will preserve working capital for things that actually contribute to income generation in the early years. It all boils down to that.

Remember, patience is a virtue. Don’t feel like you need to grab everything at once. Build your list, acquire the equipment as budget allows, and grow from there.

Finding Quality Used Farm Equipment

So where can you find used farm equipment?

Auctions, dealers, and specialty used equipment dealers are your three best sources. Here’s the low down:

Auctions – Buying equipment at auction can provide real value to buyers. Oftentimes dealers will auction off older inventory just to clear shelf space. The caveat to auctions is inspect time. You typically won’t have a lot of time to noodle around with the equipment. Having a seasoned operator come with you that understands the machinery you’re looking at is invaluable.

Dealer Lots – Dealer lots are often the safest bet for first time buyers. Prices will be higher than auction, but you get the peace of mind that the equipment has been looked over and priced accordingly.

Specialty Used Dealers – This is a top choice for many operators. Specializing in used equipment only, and specific implement categories (i.e. rotary cutters, tillage equipment, etc.) allow these dealers to dig deep on inventory and provide unmatched expertise. That last part is GOLDEN when you’re trying to figure out what to look for in a used multi-spindle rotary cutter, or comparing specs between different manufacturers.

Think you got what it takes to start buying used equipment?

Creating a Used Equipment Game Plan

Reducing capital expenditures through purchasing used equipment is one of the easiest ways farm startups can preserve capital and get more mileage out of their dollar.

Declining used equipment prices, increased inventory levels, and a downright horrible financial environment for new equipment purchases have created a perfect storm for buyers. Scoring a quality used multi-spindle rotary cutter, dependable used tractor, and any other implements you may need at a fraction of the price of new can equip a farm startup to operate profitably right out of the gate.

Here’s your game plan:

1. Determine what equipment you NEED to get the farm up and running. Anything that can wait, wait.
2. Purchase those items used from reputable dealers/auctions/specialists.
3. Inspect everything with a fine-tooth comb before you buy.
4. Protect as much of your working capital as possible during the first two years of operation.

Farm startups that execute on a plan like this will not only survive the startup years – they’ll be kicking butt and taking names five years down the road.