Farm Equipment Rental Market Trends

Growth Drivers

• High market value of agriculture equipment - The requirement of equipment is basic for the agriculture sector. Therefore, the world's shift towards precise farming and mechanization eventually increased the demand for high-value equipment. This resulted in affecting agriculture production and no savings since the farmers had to invest their hard-earned money in buying expensive machinery.
   
• Increasing demand for food - With the rise in population, the demand for food is also increasing. To meet these demands, the adoption of new techniques and equipment must be acknowledged. With the assistance of rental equipment, farmers can easily increase productivity and maintain the global food demand. Further, the subsidies provided by the government such as Yantra Laxmi Scheme, help the farmer in accessing necessary elements required for the field.
   
• Increasing number of rental services - The farm equipment rental market is rapidly expanding in the world since the rental sector has various equipment to offer whether it is related to construction or farming. The construction equipment rental is also in high demand due to the increasing industry awareness. As in the 2022-23 budget of the Indian Government, nearly USD 26 billion is anticipated to be invested to develop highways for better transport and connectivity. The suppliers of the farm equipment rental market had to take risks since the seasonal variations hinder growth.

Challenges

• Fluctuations in demand due to changing seasons - Planting, harvesting and other such type of seasonal events are a barrier to the growth of the market. Rental equipment suppliers may find difficulty in generating a fixed income throughout the year resulting in huge losses.
   
• High-value investments - The farm equipment rental market requires high-value investments. Businesses that step into this field face difficulty in paying huge amounts for stocking machinery and other necessary equipment.