What is the actual depreciation on a new combine?

[AlbertaFarmer5]

Just having a dicussion with relatives about cost of machinery. I am so far removed from new equipment values, I only buy equipment that has no depreciation left, so don't have the numbers.
But what would the real depreciation per year, or per hour be on a new class 9 or similar combine? Second question, how many acres/bushels/hours per machine would you personally need to justify that depreciation #?

[farmaholic]

I will probably get lambasted for this but the only real depreciation is the difference in value from the real purchase price to what it is sold/traded(real value) for when you let it go.

Purchase price less book depreciation plus recaptured depreciation(CCA) equals true cost. IMO!!

Now if you can see the real value through the smoke and mirrors of flipping equipment through a "dealer"...

[ado089]

Optimistically $45k/yr probably closer to $55k.

[AlbertaFarmer5]

Yes, but what is that #? If I paid cash no trade for a new class 9 at a dealer last August then sold it at RB this August, how much did I lose? Someone posted new prices of nearly 900000 here a while ago, yet 1 or 2 year old combines on RB are in the 2 to 300000 range.

[fjlip]

Cash price for a S690 $486000 CAD. Use it two years with 500 separator hours and I'd WAG Ritchies would get $300000, therefore real depreciation = $186000 that some body used up. Or $372 per hour. At 20 acres per hour, 10000 acres, = $18.60/ acre. Did that combine make enough profit to pay for it self?
How does that math sound?

[bluefargo]

Altafarmer5
I have wondered about this myself. I hope you get an answer. I think you are way high on the purchase price and maybe a little low on the Richie price. I suppose another factor is the fact that Richies don't sell it for nothing either. They need their commission.
I'm only in the used market and would be interested in the economics of the new machines

[bucket]

486000 cdn and what about a header?

Pickup and header cost has to be another 150000.

10000 acres at 20 per hour is 500 separator hours. Pretty rare to see a 1 season use combine with 500 hours. Usually 300. Now the math is different.

I think SF3 should have an answer for this.

[jake550]

4 for 4 combines last year for $156,000 or $39,000 per machine. 225 separator hours.
I'm sure guys doing 10 machines or more at a time do better than that.

[SASKFARMER3]

Jake your correct on the 4 for that difference!
But with our dollar the machine is now almost 600000 that's when I decided to quit multiples! New quad comes in at 727 with the dollar!
New is a thing of the past for this farm'
Now yea I did use the bumper to bumper three year deal so F$&k trading!
Plus with this low dollar wheat at 5 U.S. Or 5 Canadian kind of tough to compete!
Also a old deere 9600 sold this fall for more than I paid new for one! Hell a 4020 power shift is worth more than what we paid new!

[jake550]

yes that was just before the dollar started tanking.

Never got a price to trade again this year yet. If it's to big of jump it won't happen.

These Ag companies need a wake up call. I don't know why GM and Ford etc can hold same price on vehicles for example and yet right away we have to pay more for equipment.

[furrowtickler]

Add 30% from last year

[fjlip]

That's the quote I heard with PU header, and I say after 2 years at 250 hours/ year. One unit, current $0.75 CAD.

[fjlip]

SF3 you are low on the 9RX, need to add the options like cab, auto steer, lights, hydraulics and tracks,

http://www.thecombineforum.com/forums/attachments/tractors/64954d1440675902-jd-9rx-get-your-check-books-ready-9620rx-loaded-cad-.jpg

[seabass]

Was quoted 724000 for quad.

[furrowtickler]

Huh - and we thought $30,000 for new tires on the ole tractor was a bit much - lol