Fifteen years ago, replacing equipment was a much easier decision than it is today. Equipment prices have increased, financing costs have changed, and the overall cost of ownership looks much different than it once did. As a result, more producers are choosing to keep equipment longer and manage the risks that come with long term ownership.
That is exactly why Jake Bryce wanted to have a conversation with Brannon Lange, a farmer near Glenwood, Minnesota. Brannon farms approximately 4,000 acres of corn and soybeans, depending on the year, and runs 150 head of cattle. His family’s operation is located just a mile, as the crow flies, from where Jake grew up.
Brannon’s family has spent more than 50 years helping agricultural producers manage risk through crop insurance and other insurance products. As Machinery Scope was developing its equipment protection programs, Jake wanted honest feedback from someone who lives these decisions every day.
During a conversation in Brannon’s shop, one comment immediately stood out.
“Nobody seems to be in an equipment rotation anymore.”
Brannon went on to explain that years ago it was often possible to trade equipment much more economically, particularly when multiple machines were involved in a fleet purchase. As equipment values and ownership costs have changed, those opportunities have become much less common. The economics have changed for both farmers and dealerships. For many operations, the conversation has shifted from replacing equipment on a regular cycle to finding ways to confidently own equipment longer.
Brannon shares why he chose to protect several of his machines with Machinery Scope coverage, including the John Deere 8R featured in the video. Like many producers, he still expects to handle normal maintenance and routine repairs himself. His goal is simply to protect his operation from the major mechanical failures that can quickly turn into unexpected repair bills.
The conversation is not really about warranties. It is about maximizing your return on investment and mitigating some of your biggest risks.
Every operation is different. Some producers will continue to replace equipment on a regular schedule. Others will choose to extend ownership and maximize the value of the equipment they already own. Neither approach is right or wrong. The key is understanding the costs, the risks, and making the decision that best fits your operation.
That is where Machinery Scope comes in. Our goal is to help producers confidently make the ownership decision that is right for their operation by reducing the financial risk of major mechanical failures no matter their equipment strategy.
Watch the video to hear Brannon’s perspective on equipment ownership, managing risk, and why he believes extended coverage has become an important part of his operation.
