Investing in new technology can be one of the biggest decisions you make on the farm. With so many new tools, systems and innovations hitting the market, it can be tempting to purchase the latest and greatest gadget with the hope that it will be a smart investment. But as enticing as new technology can be, the decision to make a big purchase should never be made on impulse.
Before you go signing on the dotted line, Stephanie Plaster, Extension farm management outreach specialist, and John Shutske, UW-Madison professor and Extension specialist in biological systems engineering, recommend asking yourself five key questions that can help determine whether a new purchase is truly the right fit for your farm.
1. What Issue Are You Hoping To Solve?
“The first question you should ask yourself is, what issue or challenge are you hoping to solve?” Plaster explains. “Understanding what is driving your decision to invest can help you evaluate whether this will be worth both the financial cost and the inevitable discomfort of the adoption transition period.”
While new equipment can make productivity and efficiency easier, technology is rarely plug-and-play. It requires time to learn, integrate and adapt. If you don’t clearly understand the benefits it provides and how those benefits justify the cost, you may end up investing in a solution that doesn’t truly address your needs.
2. What Are Your Skills And Interests?
Your strengths and preferences can make or break a technology investment. Knowing what you and your team are comfortable with can determine how smoothly a system is adopted and used. Technology that aligns with your skills and interests reduces frustration, speeds up integration and increases the likelihood the investment will deliver the results you are expecting.
“This might seem like a silly question when considering autonomous equipment, but it could make or break the success of the technology adoption or change management process,” Plaster says.
If you’re comfortable with software, data analysis and troubleshooting, certain systems might be a perfect fit. If not, you may want to choose technology with strong dealer support.
“Playing to your strengths and minimizing your weaknesses is a solid strategy,” Plaster adds.
3. Do You Have Reliable Internet Access?
Many of today’s technologies require consistent connectivity for updates, monitoring and troubleshooting. Without reliable internet, systems may not run as expected. That’s why verifying your internet connection beforehand is essential so the technology can perform as intended from the start.
“Do you have broadband internet access you consider both accessible and affordable?” Shutske asks. “By formal definition, we’re talking about a speed of at least 25 megabits per second for downloading and three megabits per second for uploading data.”
For farms in rural areas, this may require exploring alternative solutions like fixed wireless, satellite or cellular-based services before implementing connected technologies.
4. Is There Adequate Service Infrastructure?
Even the most advanced equipment will eventually need service, whether it’s routine maintenance, troubleshooting or unexpected repairs. According to Shutske, having access to knowledgeable technicians and reliable support can make all the difference between a smooth operation and days of downtime.
“It’s really important to ask questions of your technology supplier or vendor,” Shutske says. “Our research shows that it’s proving to be a real challenge for local technology companies who want to hire excellent people with technology skills to work in and service agricultural areas.”
He encourages farmers to ask vendors about their staffing, average response times, remote troubleshooting capabilities and how they support customers during the startup phase.
“Will they be able to support you remotely if a service technician cannot come out and travel to your farm?” Shutske asks. “Reliable service infrastructure is essential for smooth operation and maintenance.”
5. How Comfortable Are You With Your Finances?
Ultimately, the decision to invest comes down to the numbers. Not just whether you can afford the purchase today, but whether it will pay for itself and support the long-term health of your operation. A piece of technology that looks appealing on paper can quickly become a financial burden if it doesn’t deliver measurable returns.
“It’s critical to identify if the farm will have the capacity to achieve financial and production performance goals and objectives,” Plaster explains. “That means knowing your current financial position, understanding key measures like ROI (return on investment) and IRR (internal rate of return), and calculating how this purchase will affect cash flow and debt load.”
She notes that salespeople, lenders and accountants will all use different financial language. Therefore, the more familiar you are with the terms and metrics, the more confidently you can make an informed choice.
Build a Decision-Making Framework
While these five questions are a strong starting point, Plaster emphasizes the value of a structured decision-making process.
“To make informed decisions, it is essential to have a clear strategy,” she says.
Tools like a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) and gap analysis can help you evaluate current performance, identify areas for improvement and determine whether new technology is the best path forward.
By weighing the problem you’re trying to solve, the skills you bring to the table, your infrastructure and your financial readiness, you can approach a technology investment with clarity and confidence.
