Simplicity

• Compared to lengthy and complicated convertible notes (a common alternative), a SAFE round offers investors 'a 5-page document that was created to streamline the seed investment process'.
• SAFE investments do not 'carry an interest rate and don’t have a maturity date'.
• SAFEs require little negotiation more than discussions regarding valuation caps.
• With no predefined terms or maturity dates, SAFEs give 'the startup total freedom with no specific destination or expectation'.

Equity Conversion

• While a convertible note provides options for stock or future financing, a SAFE round 'only allows for a conversion into the next round of financing'.
• SAFE investments can 'convert when any amount of equity investment' is raised.
• A SAFE investment provides 'simplicity, but it doesn’t give the control to the entrepreneur'.
• Another important factor is that 'raising common stock doesn’t trigger a conversion for a SAFE investor, so entrepreneurs in need of some extra cash could do a "friends and family round" and avoid the conversion trigger if there is a need to bridge'.
• Data from the SEC states, 'if a SAFE specifically triggers upon an offering of preferred stock, but the company subsequently raises money by instead selling more SAFEs, common stock or convertible notes, or by getting a conventional bank loan, then the SAFE will not convert despite the company having raised more capital'.

Valuation

• It is possible, depending on a company's positioning, that SAFEs can be issued 'without a valuation cap', though it can be tricky. Andrew Krowne, of Dolby Family Ventures, states that, 'We have observed that many founders don’t do the basic dilution math associated with what happens to their cap table (specifically their personal ownership stakes) when these notes actually convert into equity. By kicking the valuation can down the road, often multiple times, entrepreneurs end up owning less of their company’s equity than they thought they did. And when an equity round is inevitably priced, entrepreneurs don’t like the founder dilution numbers at all'.
• 'It's debatable as to whether a SAFE would trigger the need for a fair (409a) valuation to formalize common stock value. Avoiding this means potentially avoiding paying for the professional services involved with getting a 409a valuation.'
• 'SAFEs can include a discount, a valuation cap, both, or neither, though, it is not common for either to be absent, as that would discourage investors'.

Payouts

• Both convertible notes and SAFEs offer 'similar payout mechanism(s) in the event of a change in control (acquisition/IPO) before a conversion can occur'.
• SAFEs are designed to 'give the investor the choice of a 1x payout or conversion into equity at the cap amount to participate in the buyout'.

Interest Rates

• SAFEs are not debt instruments, they are defined as warrants and do not carry an interest rate.
• As 'most entrepreneurs don’t need another expense', a SAFE note carries an advantage over a convertible note.

Potential Risks

• There could be an 'instance in which after the SAFE note is signed and a valuation cap discount is arranged', allowing another investor to offer 'a larger cap and a request that the SAFEs convert to a higher cap'.
• As SAFEs are not debt instruments, 'there is a chance they will never convert to equity and that repayment is not required'.
• Incorporation is a requirement for SAFEs, thus 'a company will have go through the incorporation process before being able to issue SAFE notes, which may require the services of an attorney'.
• From an investor standpoint, the SEC cautions that because 'a SAFE is an agreement to provide you a future equity stake based on the amount you invested if—and only if—a triggering event occurs. SAFEs do not represent a current equity stake in the company in which you are investing. Instead, the terms of the SAFE have to be met in order for you to receive your equity stake'.

Precaution measures

• Maintaining tractors requires extensive safety precaution measures. The maintenance procedure itself requires additional equipment, such as equipment for jacking and removal of wheels.
• As safety measures, tractor brakes, clutches and drives need to regularly be adjusted. Before re-fueling, servicing or greasing, the engine needs to be cold. Belts should never be removed while pulleys are under power. 
• Tractor jacking should be performed on flat surfaces, preferably concrete floors. Professional advice should be seeked when jacking a tractor and the procedure should never be performed by a lone individual. When removing tractor tires, water and air pressure should be removed.
• Individuals should be dressed appropriately when maintaining farming equipment. Clothes shouldn't have loose threads and long hair should be tied. Overall, it is advised that the operator's manuals are checked before each maintenance check and procedure.

Cost-effective Maintenance Practices

• In order to avoid costly repairs, some farmers suggest regularly performing maintenance checks, by keeping maintenance records. Each vehicle should have a journal which indicates the procedures that have been taken care of, notes problems and observations and reminds of the next maintenance appointments.
• Regular testing of engine oil and hydraulic fluids within the farming vehicle significantly help prevent failure. Additionally, regular oil and hydraulic fluid tests help detect potential issues which can be taken care of before escalation, according to industry experts.
• Storing equipment inside significantly alleviates trade-in value reduction compared to storing equipment outside. This rule is especially applicable to tractors, combines and planters. Tillage implements, on the other hand, shouldn't be placed inside due to the amount of space they take up and the fact that they are least susceptible to value loss when placed outside.
• Eventual equipment issues that occur during the harvesting season should be taken care of immediately, as this prevents potential equipment malfunctions, which can be costly if they occur in the middle of the harvesting season.

Tillage Maintenance

• Type of soil and the characteristics of the farming surface impact the frequency and the nature of tillage equipment maintenance. Fine sandy loams, for example, can cause erosions of the steel surfaces.
• Down-pressure swings should be regularly checked for eventual disfigurements, as this can significantly impact harvesting effectiveness. The springs need to be adjusted evenly and the wheels and tires should be evenly inflated. Wheel bearings should be regularly greased.

Weed Control Equipment Maintenance (Mowers)

• In order to avoid the spreading of herbicide-resistant weeds to unwanted areas, weed control equipment should be thoroughly cleaned from herbicide-resistant weed seeds and debris. This is done by disassembling the equipment and cleaning the parts individually using an air compressor.
• In order to ensure the equipment is thoroughly cleaned, bale pieces should be fed to the machine. When no more material comes out, the mower should be cleaned using a blower, in order to remove stray material parts.

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