New Equipment

[farmaholic]

Now that was funny hobby.... the wasting part.

[SCS]

Glad I switched to a full meal deal of cattle in 94. Still expensive for equipment, but I can hunt for cheaper!

[hobbyfrmr]

Freewheat, I forgot to answer your question. I say yes, the modern machines are built "smarter", more fuel efficient, better gearing in transmissions and more comfortable. They should last 20 years pretty easy most farms are only putting 250 hours a year on them. That would make 5000 hours after 20 years. There is still plenty of use left in a 5000 hour tractor. The electronics may prove faulty over time, but after 10-15 years I would anticipate aftermarket components will be able to replace OEM.
I read an article somewhere, that companies like specifically named John Deere, own the technology in the tractor. So, going forward in the future the farmer/construction company owner can buy and use the necessary machinery but never really "own" the machinery because the manufacturer owns the technology. Eerily similar strategy to the seed companies. The wireless transfer of information about your production practices can easily be collected from the software technology owned by the manufacturer in the machine you bought but don't own. I never believed people when they would describe all this monitoring and technological control of a farmers seed and machinery. I used to think they were paranoid, tin foil hat type folks. Truth is stranger than fiction.

[biglentil]

It should last at least 1000 hours before coming completely unglued. Cost only a 1000 an hour plus fuel, maintenance and labour.

[fjlip]

Any one of the new $500,000 plus new iron costs a $100,000 the first year, work that into your cost per acre. Only math that make $$$ is on "older" used stuff.

[Richard5]

I still think too many operators think of equipment purchases based on annual cash flow of payments (and more if being purchased through leases).

This in no way reflects actual cash cost of owing the piece of equipment for period it is on the farm.

I also think its too easy to get caught in the trap of getting into a piece of equipment that you really don't need or fully utilize (ex: lease a new tractor verses buying a 3 to 5 year old one)

There will be a lot of farms that are totally fortunate with a pile of cash and choose to spend it as they like.

I am assuming it would be ones like the farm that flipped the complete line of low hour CaseIH equipment through RB auction this spring

[fjlip]

They went from blue to green to red and back to green. Need a law against the ridiculously wealthy or the stupidity of dealers/manufacturers/Ritchie. Waiting to see which color next....

[farmaholic]

Whose good used equipment are you going to buy if nobody buys new and flips early with low hours? I am not that farm by the way!

Each should "manage" their equipment needs that best suits their finances and farm. What works for one may not for another.

After working with "modest" equipment while I was buying land and getting more established, I think I deserve what I have today....and there is still room for some improvement in some areas.

[Richard5]

Fjlip, or a law for companies that provide financing if my assumption isn't correct

[hobbyfrmr]

Buy leasng and not owning equipment, you get to stay updated and use the most modern efficient machinery. The you can rent more and more land to make it all cash flow.
I do agree there are many farms with much wealth and by using best management practices are accumulating more wealth. That is the name of the game. Otherwise its just a higher class of poverty where you go to vacations to feel better.

[Partners]

Some of these flippers are doing it because they are in trouble, and hope to make some $$$ so they can afford to keep going..Hence..change color, to prolong the game..Its not all rosey for some of the big guys...