NewsLeasing IOT devices in agriculture, a winner/winner business model to drive usage of in field sensors

Leasing IOT devices in agriculture, a winner/winner business model to drive usage of in field sensors

Agriculture greatly benefits from the Internet of Things (IoT), with various connected devices enhancing productivity, saving time, and increasing profitability. These include climate sensors, disease-detecting cameras, soil capacitive probes for water management, and more. Most suppliers offer both purchase and rental options for these devices. 90% of the clients of Magda’s partner Cap 2020 choose leasing over purchase for products such as CapTrap connected trap or metIS hub (the in-situ sensor used in the project).

Renting connected objects in agriculture is becoming increasingly popular for farms aiming to boost productivity and profitability.

Advantages of leasing connected objects in agriculture for the farmer:

1.    Affordable Access to Advanced Technologies:

Renting allows access to expensive technologies without the hefty upfront costs. The rental expenses are generally lower than purchasing, making these technologies more accessible. Additionally, the risk of having an obsolete product along with poor support is mitigated.

2.    Flexibility in Farming Evolutions:

Renting provides flexibility when there are changes in crops or technical routes that require discontinuation of certain connected objects. The duration of rental can be tailored to specific needs, allowing quick adaptation and cost control.

3.    Cost Control:

Rental costs cover equipment availability and usage fees. There are no unexpected expenses during the rental period, and the supplier bears the repair/replacement costs for any hardware issues. Unlike purchased equipment, rented devices undergo maintenance and upgrades between rentals, ensuring controlled costs.

4.    On-Demand Equipment Usage:

Some connected devices are only useful seasonally, such as for disease monitoring or irrigation. Renting allows using the equipment only when necessary, avoiding storage and maintenance hassles during the off-season.

5.    Tranquillity through Maintenance:

During the rental period, if equipment issues arise, quick replacements are guaranteed as rented devices are under warranty. Suppliers handle maintenance, ensuring well-maintained and longer-lasting devices. Renters don’t need to worry about upkeep, allowing them to focus on their core activities.

In summary, renting agricultural equipment offers flexibility, cost control, and optimal usage with maintenance provided by the supplier. It’s a practical solution for farms aiming to streamline operations and enhance efficiency.

Author: Julien Orensanz



Leasing, IOT, in-situ sensors, smartfarming