reply to crazy winter equipment deals

[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!!

[JD9630]

This farm always ran Deere equipment since it started in 1947.In 2007 we ran two Cat track tractors ,two JD on wheels & one JD on tracks,then in 2008 we ran five Cat's on tracks,in 2009 ran two Cat's with duals and three Cat's with triples.In 2010 we ran six NH with duals & one JD 9630 with triples. In 2011 we will be running five JD 9630 with triple & one JD 9430 with triples. We tried the other colors to see if we liked them better than JD,but we still prefer the JD tractors along with excellent service from Jay Dee Ag Tech.This year we will running two 84' Seed Hawks with 800 bus tank.The reason were are running that many 4WD's is because we don't direct seed and we work ahead and we work everything in the fall if weather permits.We tried to direct seed in 2005-06 but we weren't happy with the yields we got in other years. The ground was too cold and it took longer for the crop to come up.We are not knocking direct seeding,it doesn't work for us.We must be doing something right we have 1.2 million bus. of grain storage,with 1 million in the yard tied to a grain dryer.We own 50% and rent 50%.We farm north of Englefeld Sk.The rumors are that we are farming Lever's land by Muenster,that is not correct.That is not our area,we have been patient over the years and we have well over 100 quarters that are connected.Hopefully this answers everyone's questions and corrects the rumors.

[TOM4CWB]

JD9630,

BTO is a troll... please excuse his crude sense of humour.

GTO... go restore a car... you will only get in trouble running a 4 wheel drive!

[Wheatking]

As for who is farming Levers ent. land I was under the impression that it was P.G.V. but that is just coffee shop talk as well so take it for what it is worth.

As for Crones we farm relatively close to them and they are the hardest(Some may say crazy hard) working family around. They also keep their equipment in top notch shape, if you ever get a chance to buy used equipment from them it will be better condition than new.

[Wheatking]

Hopper should know who is farming that land I thought he was in the heart of that area.

[BTOfarmall]

Old Crone looks like You's kin't make up yer minds fer Heavens Sake. SeedHick??? You's actually use that Junk???

Tom I ain't run 4 Wheel Drives. Only Tracks around here....

WheatQueen maybe it Parkland Ventures runnin Lever's Ground??? Dey from Humblebolt area.....

Hey Old Crone how You's hear about da Rumours anyways????? One of yer HenchMen at JayDee dealership Whine & Snivel to Ya?????

[vvalk]

mbratrud
I would challenge you on the $8 an acre. Don't think you can combine $3800 acres for $30000. You would be putting on 300 hrs at least. $100 an hr for brand new. I doubt it. Not arguing that running new isnt worth it but it costs more then that

[mbratrud]

vvalk,

I guess thats why I indicated everybody is different. We are 1/3 pulses, 1/3 Oilseeds, 1/3 Cereals. We swath our Canola and Lentils and the combine does not stop thrashing 80% of the time we are taking hoppers on the go, as a result we don't put much more than 200 - 225 threshing Hours on our machine in a year. Our last machine was traded with 580 hours after 2.5 seasons use. Will be less hours with Class 8 I expect we will put on about 160 - 180 hours/year or so.

Should be 30 Acres/hour on Canola and Lentils and 20 Acres/ Hour on Cereals with a class 8. Factor $200/hour for class 8, $175/Hour Class 7 and $150/hr Class 6. Believe me I have analyzed it to death. Obviously if your are 50% Cereals and straight cut all your pulses and drive half way across the feild to dump your hopper you will put more hours on your combine.

Oh the other key is to run a Red Machine!

[mbratrud]

This has been our experience in costing out combines.

Class 8 Class 7 Class 6
Canola ac/h 30 25.5 21.675
Lentils ac/hr 30 25.5 21.675
Cereals ac/hr 20 17 14.45
Avreage ac/hr 26.7 22.7 19.3
$ per hour $200.00 $175.00 $150.00
$/ Acre $7.50 $7.72 $7.79

This will not make sence if my table gets all jumbled so if it does just disregard this post.

What does that equipment leasing company charge? Cant remember their name?



Very interested in hearing others experiences.

[silverback]

Uhh, I would just like to ask how many farms could honestly say they can put 30 acres/hr of canola through a class 8 combine? I'm sorry but unless that is a 10 bushel crop I can't believe it. I would gladly stand corrected...

[mbratrud]

Again Silver Back everyfarm is different, We would normally be shooting for 35 bushels as a decent Canola crop in our area. Last year was better 45 picked up 34ft of good cured Canola at about 7MPH. Works out to closer to 28 on that crop I suppose. My point doesnt really change I am using pretty generous numbers on the $/ hour side.

I guess my overall point is does much thought go into these decisions? What do you do Silverback and what made you go that way?