Produce Agriculture is an industry where margins are low
Farming efficiency and time efficiency are critical issues. The implementation of a total electric farming system would enable certain advantages such as a more profitable work force with less costs.
Electric tractors will retain better than 70% of its value after 5000 hrs. while traditional tractors lose 70% of their value. Part of the reason, but not the only reason, for this disparity is the average expected lifespan of an electric motor is 35 years, which is two times the average lifespan of a traditional farm tractor engine.
Gas- diesel powered tractors require replacing parts that go bad over time. Electric vehicles are different because they do not need as many components to operate. For instance, electric motors only have one moving part while engines in traditional tractors contain over 300 moving parts.
The price of electric vehicles is coming down, but they still look expensive compared with many gasoline-diesel powered tractors. That comparison, though, is misleading. Once you figure in the cost of ownership, especially maintenance and fuel, electric vehicles are a bargain despite the up-front price tag.
Some cash strapped farmer's are unable to access credit from the formal financial system because of a variety of factors, including lack of collateral, and inadequate or no formal financial records. In fact, most small and medium-size farmers cannot get past traditional risk assessment by formal financial institutions. With lower repair cost and no oil or fuel needed financial institutions welcome the new regenerative and sustainable farming equipment.
It is just a matter of time when electric tractors are the in the mainstream of farming.
William Kanitz Pres. ScoringAg.com