Maple let 30 some go in fall and my guess is this is just the beginning. Lots of other places will start. Welcome to 2016.
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JayDee Ag Tech Humboldt
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I don't understand why some people find it so hard to believe that some large, long established, well managed family farms are in a very well heeled position?
If every subsequent generation didn't have to buy the same land in the same family every time the torch got handed down... Luck, management, timing, outside income....
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I have a theory about new "model" combines...
If there is a large mechanical and technological difference in a machine from the previous model...I don't want it on my farm for three years. I am not "paying" any Company to do their R&D and field scale trials on my farm. Oh but that is what warranty is for... You are paying for that warranty and I can't afford the down time while they get the "bugs" worked out on my time and money... We don't run more than one combine, so you get the picture.
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farma - been there done that - took us 2 years to get out of that new model nightmare, nobody - including the dealer we bought from, wanted the 2 month old machines back on trade.
I can say though, we are great full to work with one dealer and switch out combines. So far they have been excellent to deal with - Full Line in Saskatoon.
Agree with LEP, 3-4 year may be the way to go.
At over $100,000 per year per combine - that seems retarded but can that combine do 5000ac / yr? Maybe in Swift Current but not in Kamsack. That's $20/ac , about the same as a custom guy....
You can buy low hr big used Lexions for a lot less than $100,000 / yr and get close to 5000 ac / yr out of them with 40 ft heads....
I duno how far new prices will keep going but IMO they are far out of touch already and have been for 2 years.
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So what's the advantage going from a 2015 to a 2016 ? Is there 30% more capacity ? 50% less fuel use to justify the $100,000 ?
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Combine expenses this harvest came in at about 8 dollars an acre, plus fuel and lube.
Compares favorably...
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Has anyone heard of corporate capital tax?
Its when you start losing your small busness tax rate and therefore your corp tax is 27% and not 13% (sask rates)
Maybe that's why these guys are flipping?
Still makes no sense to spend a dollar to save 27cents
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R5---What is it? Up to 500K(net) at the lowest corp rate in Sask. And any income that isn't related/generated to the active business of farming that doesn't qualify?
Some describe the business of farming being equivalent to being on a treadmill....
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