Equipment Appraisal Blog | Understanding Machinery Appraisals

How a Tractor Valuation Helps You Make the Best Plans

Posted by Equipment Appraisal Services on Mon, Jul 27, 2015 @ 08:30 AM

tractor_valuation

There are few people who work as hard as farmers do, with as much dedication to the land, to making their living from it and to leaving a legacy to their children and grandchildren. But when it comes to machinery and equipment appraisal, many farmers don't know what their equipment values are to protect their investment and provided guidance to future generations. It's important to your farm's bottom line to have an equipment appraiser provide tractor valuation and machine appraisal for your records. Here's how a tractor valuation and equipment appraisals gives you the best information to make plans for you and your farm's future.

Budgeting Concerns

When you're working on your accounting records, what is your machinery worth? If you know your machinery valuation, you have a better idea of how much it should be depreciated, allowing you to take advantage of your machinery's changes in value in your accounting and on your taxes. Talking to a machine appraiser will help you estimate how much your new equipment will lose value over time and how to budget for those changes accordingly.

Proper Insurance Coverage

Do you have sufficient insurance coverage on your farm equipment? When you suffer a loss, it's vital that you know what the equipment value is for the damaged or stolen machinery. If you don't know the value of your equipment, you can't determine how much of a loss you've taken and whether you're being treated fairly by your insurance company. Farm equipment appraisers provide a detailed description of your agricultural machinery, including its actual value. 

Know Your Trade-In Values

When it's time to replace or upgrade farm equipment, do you know how much your equipment is worth to negotiate with the sales representative? We've all heard stories of people who have been cheated on their trade-in value by unscrupulous dealers. Even when you're dealing with an honorable dealership, how do you know that you're getting the best possible trade-in value on your existing equipment? By having an equipment appraisal performed by an accredited agricultural equipment appraiser, you'll have proof of the exact value of your machinery, giving you a position of power at the negotiating table.

Planning for the Future

When you're making plans to pass your farm onto the next generation, are you passing them a farm that's successful or one that's in financial trouble? With estate taxes and the confusion that often arises around the transfer of ownership, having a solid plan in place to pass your estate to your children or grandchildren will help ease the process. If financing needs to be obtained to help the process move along or modernize your farming operation, having a solid farming equipment appraisal in place provides solid documentation of your farm's assets. With knowledge of your farm machinery's proper values, it's much easier for your heir to plan what steps to take for future changes and expansions.

No matter what your reasons, having a solid grip on your farming machinery values is a great benefit to keep your farm operating successfully. By having an accredited appraiser perform a valuation on your farm equipment, you have a better idea of what your bottom line actually is and where your finances are going. Don't put off having an appraisal done on your ag equipment - tomorrow will be here sooner than you know it.

Tags: tractor valuation, machinery appraisal