Machinery costs

[cowman]

Do you ever get kind of get disgusted with machinery costs? I mean come on $100,000 for a 100 hp tractor? or $36,000 for a haybine? or $40,000 for a baler??? Is it really possible to pound a baler over enough acres to ever pay for itself? Are these prices really realistic? I won't even mention a combine!!!!
I see a lot of people doing 2 or 3 hundred acres of hay and they have $85,000 tied up in haying equipment, not including the tractor: does this make sense?
I just recently drove by a farmers place and he had 25 cows. He had a $14,000 bale processor!!! Does this make sense? Once, at a seminar I attended, they had a banker speaking. He said" The biggest problem in agriculture is machinery expenses...and the desire to own more!"
Now I am not against farmers owning decent machinery, but how many actually sit down and think out how much this extra machinery will cost?

[ianben]

Is it the machinery cost which are too high or our prices which are too low.
Are Deere etc. making mega bucks considering their investment. Are dealers doing likewise. Three of my local dealers ceased trading last year.
Another large dealer reportedly lost £3million.
Farmers survive better than machinery men in my view.
Everyone involved with ag would benifit if we recieved realistic prices.

[cakadu]

Cowman, I'm with you - I don't begrudge anyone having decent equipment to work with, but how necessary is it to own the biggest, fanciest and shiniest every year?

What would happen if we went back to the old days where people used machinery on a collective basis? I suppose it would be like custom guys today. How much cheaper would it be if one didn't need to own all the machinery, land etc., but just rented or got it custom done? I'm curious.

[cowman]

Ianben: You are sure right about machinery dealers having an ugly time of it, especially the independent owners. My brother in law had a farm dealership for a number of years and he did okay but often said he wished he was in a lot more stable business. When times were tough on the farms, it was tough on him too.
Linda: In many ways custom services are a lot better and cheaper than owning. A couple of years ago my haybine was getting old and unreliable. A new one was in the $30,000 range. I decided it was cheaper to hire a custom operator and have used him since. $10/acre.He does a good job and has big new machinery. You have to sort of give up a bit of timing and he cuts it all at once. I have a new baler so I still do my own baling but when the time comes to trade it I will probably go with a custom operator. Part of the reason for this is I really don't enjoy tractor work. I'd rather be at the lake!!

[Muttley]

Sometimes renting machinery is not the way to go do to availability. My local dealers will rent out equipment but often do not have it. I have tried to higher it done but again the custom operators are booked or busy doing their own. This is hard especially on hayland that needs done now and can not wait.

As for sharing equipment with another person or persons this would probably be the best if you can work with the right people.
I often wonder why we as farmers do not form more associations or coops for equipment and other things such as fuel, chemical, fertilizer. etc. I keep hearing stories about the larger farms getting better deals for buying more product.