Iron addiction

[grassfarmer]

Looking at the latest Ritchie auction catalog it seems many have an expensive addiction to gleaming, shiny new iron. We used to reckon in Europe that unless you were putting 1000 hours a year on a tractor you couldn't justify owning newer machinery.
Can't believe how many of the loader tractors are only showing 200 hours a year on them. I realize your 4wds get used less here with the shorter seasons and mainly used for seeding/tillage but most of these for sale only have around 200 hrs a year on them.

Can it really be justified paying hundreds of thousands of dollars and using them so little?

[freewheat]

Grass. I agree.

[BreadWinner]

I would say it is justified because we live in a place that has to have reliable equipment do allot of work in a short period of time. Where would a farmer get his not as shiny equiment from if nobody ever new iron? Or is this another big new farm bashing thread?

[freewheat]

Breadwinner, I agree we have a limited time to get stuff done, and it is very good someone is out buying my future machinery! lol.

For my part, I am not bashing, I just don't see the dollars and cents of a half million dollar combine. For most at least. But in 10 years, when it is 80 000, I'm good with it!

[bucket]

I am ok with used equipment but like my father in law used to say - you can't have quality used equipment without someone buying new.

He also used to say - there are guys that drive deere and those that wish they could. Lol.

[freewheat]

lol, bucket. Our area is like that about green iron.

[grassfarmer]

Not bashing anyone - just an observation. If these tractors are representative of agriculture as a whole and they had twice the hours on them - say 400 hours/year wouldn't that half the new tractor spending of the industry as a whole? Surely the money saved would more than cover increased repair budgets and result in a net win for farmers/ranchers?

[Horse]

Yea BUT if we can get cheap rent we can have that new paint smell IMHO

[BreadWinner]

Equipment costs on my farm are figured out per acre, new combines figure in at around $20-30/acre if kept 3 years. One or two year old combines figure in at $13-15/acre. combines with 1500 plus hrs don't work into the formula due to uncertain breakdowns and down time. If you have smaller acres and more time these are just fine. Interest and repairs are figured into my combine budget. Any good opperation should know its cost to do business.

[grassfarmer]

Breadwinner at how many hours do you consider the tractors to be a poor risk due to uncertain breakdowns? Is this what it really comes down to - despite the huge $ prices they are basically disposable short term tools because they are either unreliable or cost too much to repair?
Is this a real physical issue with the tractors or is it more a business decision based on having repairs fixed under warranty versus out of your pocket?