Your Farm & Equipment Details
Side-by-Side Cost Comparison
| Metric | 🛒 BUY | 🤝 HIRE | 📋 LEASE |
|---|
Break-Even Analysis
Frequently Asked Questions
When should an African farmer buy vs hire a tractor?
The key threshold is about 30–50 ha per year. Below 20 ha/year, hiring is almost always cheaper — you avoid capital outlay, maintenance, and the tractor sitting idle. Above 50 ha/year (especially with contract work), buying pays off quickly. In the 20–50 ha range, it depends on your capital access and whether you can generate contract income.
What is the real cost of owning a tractor in Africa?
Beyond the purchase price, budget for: annual maintenance (4–8% of purchase price), fuel (typically the biggest annual cost), insurance, operator wages if you hire a driver, storage, and periodic overhaul costs. A ₦22.5M tractor in Nigeria might cost ₦3–4M per year to run. The "cost per hectare" metric in this calculator accounts for all these factors.
What's the difference between a loan and a lease for agricultural equipment?
A loan means you're borrowing money to buy the tractor — you own it outright from day one, and the bank has a lien until repaid. A lease means the leasing company owns the equipment and you pay for the right to use it, usually with an option to buy at the end. Loans generally have lower interest costs than leases; leases may require less initial paperwork and collateral.
How much can I earn from contract tractor services?
A tractor in Nigeria charging ₦25,000/ha can earn ₦750,000–₦1.5M per planting season working for other farmers (30–60 ha of contract work). In Kenya at KSh 5,000/ha, 50 ha of contract work earns KSh 250,000/season. Many tractor owners in Africa pay off their machines within 5–8 years purely from contract income, while their own farm operations are essentially subsidized.
Which tractors are most common and available in Africa?
For small farms: Mahindra (India-origin, strong parts network in West Africa), TAFE, Sonalika, and John Deere compact tractors. For medium farms: Massey Ferguson 375 (extremely common in West/East Africa, great parts availability), New Holland TT series, John Deere 5055E. For large commercial farms: John Deere 6-series, Massey Ferguson 6700, Case IH. Chinese brands (Foton, YTO) are growing but parts availability varies.