Farm Equipment Rental Market

Farm Equipment Rental Market Size & Growth (2022 - 2027):

The Farm Equipment Rental Market was estimated at USD 46.79 billion in 2021 and is anticipated to reach an extent of USD 66.39 billion by the end of the assessment period with a CAGR of 7.3% throughout the calculated period (2022 - 2027).

Farm equipment rental involves the service sector that mainly provides farm equipment to end-users on a rental basis. The rental contract is specified under certain conditions and signed by both parties before the contract. The rising adoption of farm equipment in several applications like plowing, cultivating, sowing, protection and fertilization of plants, and the growing need for a varied application such as farm and logging are some of the main factors that affect the growth of the market in the future.

Impact of covid-19 on Farm Equipment Rental Market:

Agriculture is the backbone of any economy. It is the primary sector that generates jobs so that the entire circle of economic circulation continues. For instance, when talking about the Indian economy, the majority of the population is limited to this sector. With the pandemic ongoing, the livelihoods of all farmers and those involved in this sector are at high risk. A brief period of pandemic will leave an eternal effect on the agricultural sector. Leading authors and researchers have said there could be a food crisis unless steps are taken quickly to protect the most vulnerable food supply chains alive. It is important to remember that 2-3 million deaths occurred during the Bengal famine in 1943 due to disruption of the food supply chain.

There was no food shortage, but the supply chain was completely disrupted. The Indian government has announced the aid program that includes cash transfers and food transfers. Several state governments have also announced their own custom package. This will lead to food and nutrition security, empowerment of farmers and stimulation of the primary sector of the economy. Closed borders, quarantine measures, and disruption of the market supply chain, as well as disruptions to trade, limit people's access to nutritious food sources. For example, in India, farmers were unable to harvest their crops because their workers had returned to their villages. The crops were left to wither on the farm and because of this the fertile nature of the land is no longer available. This has resulted in many losses for those farmers who are totally dependent on their agricultural products as a source of income.

Recent Developments

• In November 2019, John Deere launched a new series of 8R wheeled tractors, 8RT two-way tractors and the first four-track tractors. These have improved ride quality and can be driven with the ease of any other wheeled tractor.
• In December 2019, CNH Industrial N.V acquired K Line Ag, an Australian manufacturer of Farm tillage and management equipment.
• In January 2020, AGCO Corporation launched its new Fendt Momentum planter in North America to provide greater precision and correct seed placement during planting activities.
• In January 2020, Mahindra and Mahindra inaugurated their new manufacturing plant in Telangana, India, with an investment of INR 250 crores. This initiative was taken to increase the company's total production by an average of 92,000 units per year.

Drivers and Restraints of Farm Equipment Rental Market:

The government has always played an important role in the growth of the farm industry. It always promotes and involves different rules and regulations to bring benefits to the country's farm industry. The governments of many countries are trying to provide farm equipment to farmers at a reasonable price, because the purchase of all that equipment is not possible for small and marginal farmers. Previously, the farm equipment rental market was highly disorganized, but with the recent efforts of government authorities and private companies in farm equipment rental services, the business is expected to grow at a surprising rate for years to come. For example, the Indian Ministry of Agriculture has developed a farm equipment rental app for Indian farmers, which allows them to hire tractors, rotators and other farm machinery to contract with flexible schemes.

The growth of new companies offering farm rental equipment is one of the main growth engines observed in the global farm equipment rental market. Rental companies in many industries, such as automotive, consumer electronics, and more, are thriving at a good pace. There are many companies that are very active in the Farm equipment rental sector and many new players are entering this activity. As the number of rental service providers increases, their marketing and promotional activities will raise farmers' awareness, which in turn will drive the growth of the global farm equipment rental market in the future. In addition to this, it is also essential to reduce the financial burden on farmers, so that these services continue to limit the financial burden on farmers and foster growth of the sector in the future.

FARM EQUIPMENT RENTAL MARKET REPORT COVERAGE:

Farm Equipment Rental Market Segmentation:

Farm Equipment Rental Market By Type:

• Axial Flow

• Mixed Flow

• Contrifugal

Farm Equipment Rental Market By Downstream Industry:

• Aggricultural Vechicles

• Aggricultural Machinery

• Irrigation System

The farm equipment rental market can be divided into drive, equipment, and power output.

Four-wheel drive tractors have a very high traction capacity and great sliding capacity and power of the wheels. The tractor body resists maximum wear and tear and also reduces the total working time required.

Demand for 4WD tractors is at its peak in developed countries such as the United States and Europe, which have the majority of commercial and large-scale farmers. They also witness adoption rates of 95-99% mechanization in agriculture. Combine harvesters are versatile self-propelled machines designed to efficiently harvest a variety of grains. Harvest, threshing, and winnowing are the three separate harvesting operations combined in one process using a combine. Therefore, high labor costs and insufficient labor in the crop category are the main factors in increasing the demand for harvesters in the global farm equipment rental market.

The 71 to 130 hp segment mainly consists of 4WD tractors and some 2WD tractor models. Countries in the Asia-Pacific region are striving to increase Farm mechanization rates and are experiencing increasing demand for these tractors. The demand for these tractors by developed countries is higher due to factors such as high consumption rates, the greater need for food production, the greater energy requirements on farms and the large land area of ​​the country farms.

Regional Analysis:

The global Farm Equipment Rental market has been studied in regions of North America, Asia Pacific, Europe, Latin America, and Middle East and Africa. Asia Pacific turns out to be the fastest rising market for the farm equipment rental in the upcoming years. An increasing number of farm equipment rental service providers in the Asia-Pacific regions, especially China and India, is another key factor that is expected to support the growth of the Asia Pacific farm equipment rental market and during the forecast period.

Leading Company:

John Deere had the substantial share of the Farm Equipment Rental Market in terms of sales and revenue in 2020.

Key Players:

The Farm Equipment Rental Market is concentrated with key players like Friesen Sales & Rentals, John Deere, German Bliss Equipment Inc., EM3 Agri Services, Pacific AG Rental LLC, Kwipped Inc., Flaman Group of Companies, Premier Equipment Rentals, Tractors and Farm Equipment’s Ltd, AGCO Corporation, Escorts Group, CNH Industrial N.V., and others.