Talk to lots of guys that run 1 new and 1 old back up combine. Most say the "old girl" takes off more than the new one. New one is the one that breaks down the most.
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JayDee Ag Tech Humboldt
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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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