Every farmer knows what it’s like to experience farm equipment malfunction. The bearings go out, the hydraulics break down, the belt snaps, the engine overheats. Usually, it’s an inconvenient breakdown. On Tuesday afternoon in late fall, you could simply say good riddance to your tractor and wait until Thursday.

However, when critical equipment malfunctions during planting and/or harvesting, you don’t have the luxury to do that. Those aren’t simply repair bills and lost hours. They are missed weather windows, lower yields and lost revenue, regardless of how quickly you can complete the repair.

There is no longer a measurement of time in terms of weeks; the time frame is measured in days, and even hours. Weather patterns shift, soil conditions change and crops mature (and begin to decline) at certain times. The harvester that malfunctions three days into a ten-day harvest window doesn’t just sit idle while you repair it.

The chances are it may leave crops in the field exposed to damaging weather, either in terms of quality or yield. Similarly, a seeder that malfunctions during the limited planting window means that some of the fields won’t be planted at all, or will be planted late, resulting in a lower yield.

The Risk of Malfunction vs. the Cost of Preventative Maintenance

A broken hydraulic line on a harvester would typically cost around $500 to repair. Although parts and labor costs are low, the cost to produce crops in excess of that amount of time can be significantly higher than the cost of repair alone. Each additional day that crops remain unharvested past peak harvest will result in a decrease in yield or quality. Additionally, weather may move in, market prices may fluctuate and the real cost of repairing the piece of equipment is secondary to the cost of not producing.

At this point, equipment reliability becomes a risk management issue, rather than solely a budgetary concern for maintenance. Many farmers must decide between investing in preventative maintenance (which costs money now with no apparent return) versus taking the chance that the equipment will make it through the season without failing. If the equipment does fail, the consequences far outweigh any savings realized by deciding not to invest in maintenance.

Even greater financial risks exist for equipment that is mission-critical with no backup. An example of this type of equipment would include a single harvester used to harvest crops during the harvest season. In this case, the farmer is essentially putting all of his eggs in one basket. If the harvester were to fail, he would have no backup plan except to repair it or try to locate another harvester to use for the remainder of the season.

Given the competitive nature of the agricultural industry, it is highly unlikely that a second harvester would be available on short notice, especially during the busy harvest season. Therefore, the need for reliable equipment is a valid reason to spend premium dollars for new equipment, improved maintenance, or dealer support that will ensure quick repair of equipment when needed.

Parts Availability

In addition to the immediate stress caused by a piece of equipment malfunctioning during a critical season, there is also the added stress associated with parts availability. A seemingly simple repair may take days or weeks due to a lack of available parts. In many cases, parts must be ordered from interstate or international locations. This is why a relationship with a dealer network, along with the availability of parts, becomes as important as the equipment itself when purchasing equipment.

Farmers that deal with established suppliers (those that provide a producer with sales and support throughout the life of the equipment), generally have better access to parts and therefore quicker repair times. Suppliers establish inventory of commonly failing parts and develop relationships with vendors of farm equipment perth to help meet parts needs. Therefore, when an item breaks during the harvest season and the producer has a parts supplier that can provide the part on the same day or the following day, the difference between acceptable downtime and disaster can be dramatic.

Availability of parts can be a significant issue when dealing with older or less common equipment. That 15-year-old harvester may still operate, but when something breaks, locating the parts can be a nightmare. In addition to the increased risk of failure associated with older equipment, the inability to obtain parts in a timely manner can increase the cost of owning older equipment.

Opportunity Costs Associated with Downtime

Because agriculture works according to nature’s calendar, rather than man’s schedule, there are optimal windows for planting, spraying, and harvesting based upon weather patterns, soil conditions, and the development of the crop. Missed opportunities during these windows can have long-term effects on future seasons.

Late planting reduces the yield potential for the entire growing season. The crop will have less time to mature, will be affected by changing weather conditions during critical growth periods, and may not reach its maximum harvestable state prior to the onset of deteriorating conditions. Late planting may result in a 10-15% reduction in yield potential for an entire crop. For a farm with multiple hundred acres, this equates to tens of thousands of dollars in lost revenue.

Delayed harvesting creates a different set of problems. Crops that are allowed to stay in the field past optimal harvest maturity will begin to degrade in quality. Moisture levels will continue to rise, resulting in increased drying and storage costs. Weather-related damage such as lodging or shattering will occur, reducing the yield directly. Prices for the commodity may change unfavorably. The compounding effects of delayed harvesting can be greater than the dollar-per-day value of the crop.

The Ripple Effect of Downtime

Downtime experienced during critical periods rarely affects only one operation. Agriculture involves sequential tasks that require completion in order to successfully plant, spray and harvest crops. Breakdown of a seeder during planting does not simply delay planting, it impacts the entire planting season. Spray schedules are impacted. Harvest timing is impacted. What was once envisioned as a tightly scheduled, efficient season, becomes a chaotic scramble to catch up.

Therefore, the ripple effect created by downtime extends far beyond the lost days of repairs. Lost days impact the remaining activities of the season, creating inefficiencies and trade-offs that ultimately impact total production.

Back-up Planning and Redundancy

Many large commercial farming operations implement redundant systems within their fleets of equipment due to the magnitude of the costs associated with downtime. By operating two smaller harvesters instead of one large harvester, the loss of one harvester will not shut down all harvesting activities. Having back-up tractors available will similarly allow one tractor to break down without halting all activities.

Implementing redundant systems requires significant capital expenditures to maintain multiple units of equipment. However, for operations experiencing catastrophic losses during critical periods, the cost of maintaining back-up equipment is a worthwhile investment.

Small-scale operations cannot afford to purchase redundant equipment for each activity. Capital requirements are too high to justify. Therefore, smart small-scale operators focus on maintaining their equipment to prevent failures, establishing relationships with trusted dealers to minimize downtime when failures do occur and occasionally accept the higher costs associated with using newer equipment that is less prone to failure during critical periods.

Pre-Harvest Maintenance

Intelligent operators perform extensive maintenance on their equipment during non-harvest seasons. For example, after the harvest season, harvesters are thoroughly serviced. Seeders are inspected and repaired during the winter months when planting is still several months away. While this may involve additional expenses at the time, it greatly decreases the risk of equipment failures occurring during critical periods.

However, it is impossible to predict when a failure will occur. Proper pre-harvest maintenance identifies and corrects the majority of developing issues before they become a failure. Belts worn to the point of failure are replaced. Worn-out bearings are replaced. Leaks in hydraulic lines are corrected before they rupture.

Equipment Decision Making with Downtime Considerations

When evaluating equipment options, downtime considerations during critical periods should weigh heavily in your decision. The least expensive option may appear attractive, but if it is more likely to fail during harvest or lacks adequate parts support, the true cost of the option includes the potential downtime costs.

It is not always necessary to purchase the most expensive equipment to achieve equipment reliability. You can consider purchasing equipment from brands that offer superior dealer networks. Alternatively, you can choose slightly older equipment from a reputable supplier that has been properly maintained. Finally, you can pay a premium for extended warranties that guarantee prompt repair. The right choice depends on the specific operation, but all these decisions should factor in downtime risk during critical periods, not just purchase price.

Jane