reply to crazy winter equipment deals

[farmaholic]

Saskfarmer3
Why is it when someone becomes successful/prosperous/affluent they suddenly become the neighbourhood enemy? We are my no means monster farmers but have finally got to the point where the new and "slightly previously enjoyed" iron is coming to the yard. Our first priority was to get the dirt paid off. I pulled alot of wrenches on old iron and skinned alot of knuckles doing it. So, that being said I think we deserve what we worked for and sacrified to get to this point. Nothing worse than someone hating you for being successful. This comment is not directed at anyone in particular, in fact, we may have all felt the wrath at one time.

[vvalk]

why not run debt? Borrow at 4% and leverage 4 to 1. Now you make 10%-40% margin on 5 dollars instead of a 3%GIC or 10% stock portfolio return on $1.

[SASKFARMER3]

It's a tough question. Some feel you must have
cheated some one to get ahead. Others don't
see the hard work and things you gave up to get
their. I just don't know but for now at this time in
my life I finally don't care what the neighbors
think.

[SASKFARMER3]

And just to clarify my post about farms managed properly, it should have said:

Those that have managed properly and had equal opportunity. There are many out there that have had the multiple year water and other industry issues that may reduce greatly your ability to manage.

[JDGreen]

99 does your ultra succesful farm include driving truck for a couple weeks?? If so are you saying that your farm does not provide enough to support itself without off farm income?
Serious question..

[BTOfarmall]

Well, Well, Well, Look who Shit da Bed and decided to Show up!!!

Got a few questions fer da Crone's Family Farms. Why You's tryin to Farm wit 5 or 6 FWD??? Howcome You's always switchin brands Equipment??? Where You's tryin to Farm at??? What You's payin fer Cash Rent??? How much ground You's got???

Nuttin wrong wit Leasin Equipment. Gotta be coverin' alotta Ground wit it though....

See You Around........

[checking]

BTO f_ _ _ all.

Medical alert!!!

You really should do something about your stroke. (lol)

[mbratrud]

Equipment costs,

We found on our farm when we really broke it down the cost across the board of new or used all worked out to be pretty close.

I will use a combine for Example. You must compare equal class combines. Also regular maintenance is preformed and shedded machine, to ensure top trade in value. From 2006 - 2008 we ran 2002 TR99 that worked well but had some regular wear and tear that was starting to. In 2008, we traded on a 2008 2588 Case IH Financed the difference of $100000, Last fall we traded to a 2010 8120 Case IH and for $120,000 and we leased the whole thing over 3 years for tax purposes. When I break down all these numbers included wear and tear, cost of money, tax benefits ECT. Since I have been tracking this our cost for 1 combine on our farm is about $8 per acre didn't matter whether I was running new or used. We always lease our machines with the plan to buy out the residual in the trading process. Lease rates are fantastic right now. Our 8120 was done last year at 4.5% with RBC. The class 8 does more acres per hour and so the cost per acre works out close to the same. We do 3800 acres with our combine. So each farm is going to be different depending on acres and crops grown, but that’s where you simply choose the right class of combine for your needs. Am I out to lunch at $8 per acre and can run a newer machine? What are others finding for cost per acre?

My Point it is obvious JD9630 has done the math, and when you look deeper into these deals they make a lot more sense. You have to work at the deal though… think through what your farm needs and what you want to achieve. Our farm for example does not follow the Pike rule of thumb of 120 acres per foot of drill. Instead we are about 65 Acres per foot of drill. I can seed my crop in 15 Days. Most years that allows us to be done seeding by the middle of May. Last year it simply allowed us to finish seeding, hard to put a value on that.

I bought a 1041 Sakundiak Auger this fall because I figured out if I paid myself $30 per hour it cost me about $2800 in lost time to stand beside our 8” loading trucks, when I can be doing better things.

Many guys will say they save big by running older stuff I would argue if you break down the numbers its maybe $5 – 10 per acre across you whole farm assuming your tooled appropriately. A number you probably won’t truly realize until the day of your auction sale. Not to mention the cost of downtime when something goes wrong. I am not saying there is anything wrong about running used, there are several things on our farm that are very used.. Just if you do the math...

Its different strokes for different folks. Can’t look across the fence and assume anything. Every farm has different reasons for doing things. None of which are perfect but meet each individual farms needs. At the end of the day we all need each other, we need some guys to buy and run new, and we need some guys to by the used stuff, it really wouldn’t work any other way!

[BTOfarmall]

Looks like Old Crone only gonna post once. If that the case I gonna stick to Sask99's Story. Its probly the truth anyways.....


Chequing you don't make any sense. What are you tryin to say??? Enlighten us.........

[checking]

BTOfarmall.

I'm sorry. I really shouldn't tease the way you post, but it reminded me of the recent unfortunate lady reporter who had her words come out all garbled, much like the way you butcher the Queen's English. The medical profession determined that she was not drunk, or on drugs, but that she had suffered a stroke while she was live reporting.

The reporter was aware it was happening to her. I was wondering if you are aware. Just checking into your health!!