Facing issues around labour shortages due to COVID-19 border issues, there is some good news for some operators in the agricultural sector with many growers facing a bumper harvest season. According to reports, the forecasts are for above average winter crops with the Agricultural and Resource Economics and Sciences report for June forecasting up to 13% increase on the 10 year average for production. To take advantage of the scenario, many producers will no doubt we eyeing off investments in new equipment and Jade Equipment Finance can assist with finance for John Deere new releases of equipment.
Investing in new machinery at this time could be a shrewd decision with interest rates remaining at historic lows and our fixed interest rate finance ensuring that cheap rate extends over the full life of the finance contract. An added attraction are the tax benefits on offer through temporary full expensing for eligible businesses on eligible acquisitions. Before getting into the finance options, let’s take a quick look at what John Deere has recently revealed.
Cotton Picker and Stripper Launched
In case you missed it, back in early August John Deere unveiled their CP770 Cotton Picker and CS770 Cotton Stripper which the company says are packed with features to deliver precision and power. Deere report these machines as their most productive harvesters, built to meet the demands of the industry.
These units come equipped with a comprehensive range of precision tech, more space and comfort in the cab and their 13.6 litre PowerTech engine which can increase fuel efficiency by an impressive 15-20% depending on the machine. The company describe the overall package presented by these machines as an industry-leading cotton harvesting platform. Built to increase productivity with the capability to harvest a greater number of hectares each hour.
The CP 770 and CS 770 include the company’s Generation 4 Display which connects to their JDLink technology. To read all about these units and see if they would suit your operation head to the John Deere website https://www.deere.com.au/en/index.html
X-Series Unveiled to Assist Growers
To coincide with the prospect of a bumper harvest, John Deere has unveiled their X-Series combine harvester with orders now open. This is seen as game-changing in terms of tech and power for grain growers as a major step-up in delivering harvesting capacity. The X Series Dual Separator has the largest separation and threshing capacity ever offer by Deere with impressive features which can deliver increased capacity with higher fuel efficiency.
The X Series is considered as complemented the existing S Series to create a complete solution for harvesters. Working hand in hand, these machines offer a complete solution for many growers. Next generation platforms such as the Rigid Draper, Hinged Draper, Corn Heads and Belt Pick up are available on both series. For full specs and features on the new X Series, refer to the equipment information on the John Deere website https://www.deere.com.au/en/index.html
Financing New Deere Machinery
While growers in many regions face a bumper harvest, in some ways it could said that the equipment finance sector is also in a position to offer bumper finance deals. At its September meeting, the RBA Board kept the official cash rate steady which enables lenders such as us to keep our equipment finance rates at current low levels across our portfolio for new machinery acquisitions.
We are accredited with specialist agricultural machinery lenders so we are well-placed to offer better interest rates and negotiate the most cost-effective and workable solutions for our customers.
Adding to the appeal of the current low interest rate climate is the availability of accelerated asset depreciation programs still available through the current financial year. Instant Asset Write-Off and temporary full expensing may suit many ag operators looking at acquiring the latest John Deere machines this year.
These initiatives allow for the full amount of the machinery purchase to be depreciated, ie written-off or deducted as an expense, in the year of purchase. This can also be used effectively with the Loss Carry Back initiative to derive an additional benefit. Eligibility criteria apply to both the business and the equipment being purchased. Review criteria
Selecting the Most Productive Finance Product
Key to deriving the optimum productivity from any machinery acquisition is cost-effective finance. Pay too much for your loan in terms of interest rate or untenable loan conditions and the full benefit of the machinery may not be realised.
Selecting the loan type that best suits the objectives of an individual business is the first step and should be discussed with the business accountant.
We offer a full range of finance products for the purchase of John Deere machinery:-
- Chattel Mortgage for Agricultural Machinery
- Equipment Leasing
- Commercial Hire Purchase for Plant and Machinery
- Rent-to-Own Equipment Finance
While the interest rates vary on the different types of finance products, our consultants negotiate the cheapest rate possible for individual customers.
Finance is available for both single units and multi-unit machinery purchases. Speak with us about including the purchase of say both S Series and an X Series machines into the one finance deal. This provides the convenience of a single monthly repayment which may ease pressure on cash flow, a particular concern for seasonal growers.
Get the most from your bumper harvest season with cost effective machinery finance through Jade Equipment Finance. Contact is for a quote on 1300 000 003
DISCLAIMER: IF MISINTERPRETATIONS, MISREPRESENTATION OR ERRORS EXIST IN THIS ARTICLE, NO LIABILITY IS ACCEPTED. THE INFORMATION IS PROVIDED ONLY FOR GENERAL PURPOSES AND NOT IN ANY MANNER INTENDED AS THE ONLY SOURCE FOR MAKING FINANCIAL DECISIONS. THOSE THAT CONSIDER THEY REQUIRE ADDITIONAL GUIDANCE OR ADVICE SHOULD REFER TO AN INDEPENDENT FINANCIAL ADVISOR.