grassfarmer?

[cowman]

I am sure a bale processor might pay for itself if you are buying straw and it helps to spread it out better and therfore you use less? I really like the idea of the grain/pellet tank on some models. I suspect you could feed certain rations and maybe actually justify it?
But of course every convenience comes with a cost...and that is okay as long as you recognize that? I have a neighbor who has about 25 cows...and a new bale processor! He also has a really good squeeze/tub set up that is state of the art! Obviously he is not going for that "low cost producer of the year" award!
I'm not as "low cost" as some here as I pretty much do everything with a FWA tractor(Kubota) and yes I keep it in a heated shop! Maybe not the most efficient method but then I use the shop everyday for other things so it has to be heated anyway.
I have often considered buying a bale processor as a way of saving time and money. Haul three bales out at a time instead of one makes sense to me? Maybe I'll have to do some creative bookeeping to justify one!

[farmers_son]

Just some comments about owning machinery. There is too much emphasis on the depreciation and not enough on the capital cost. A 2 bale hay shedder purchased new in 1989 for $9500 could still be worth $5000 today. That is a depreciation cost of $281 per year. Most people could afford that. As our dollar increases in value the value of our used machinery should start decreasing faster although rising steel costs have hidden some of that up to now.

The bigger concern is the opportunity cost or capital cost of the shredder because that $9500 could have been invested in cows or even put towards land that would generate cash flows or increased asset value. Assuming a 5% return, that $9500 in 1989 would be over $20,500 today if it had been invested in land or cattle. At a 7.5% return to capital we would be looking at a future value of $30,000 16 years later.

Before we decide to purchase machinery or if owning machinery is better than hiring custom the emphasis needs to be on how to avoid those costs altogether as there are better uses for that money.