25 Acres worth buying hay equipment?

[two_bit_score]

There is also this.

The Stockman Grassfarmer's site

www.stockmangrassfarmer.digital

 

[two_bit_score]

The Tex. Ag Research Center in Overton, Texas used to hold these workshops every year but I could not find any scheduled now. They may have been discontinued. If so that is a loss because the workshops were very well attended and worthwhile. I went to one "a few years ago" and had intended to go again as a refresher.

tag based on what is being viewed. We filter the output of wp_title() a bit - see agriflex_filter_wp_title() in functions.php. --> <title> Why Attend the Pasture and Livestock Management Workshop? | Texas A&M AgriLife Research & Ext

overton.tamu.edu

 

[Texasmark]

A 4x5 or 5x4 round baler would be your best bet. Small enough for folks with smaller tractors to haul/feed, and can sit out in the weather being round. I have an older JD 375 5x4 that is twine wrap and does my small farm just fine. Its a '91 year model, no telling how many bales....not too many, and has been extremely reliable. Net wrap is usually on newer balers, and has its good and bad points. Some customers like this and some like that.

Square bales are very labor intensive and must be stored inside and where a roll can sit out if you get caught in an unsuspecting shower, squares hate to be rained on.

 

[Texasmark]

The Tex. Ag Research Center in Overton, Texas used to hold these workshops every year but I could not find any scheduled now. They may have been discontinued. If so that is a loss because the workshops were very well attended and worthwhile. I went to one "a few years ago" and had intended to go again as a refresher.

tag based on what is being viewed. We filter the output of wp_title() a bit - see agriflex_filter_wp_title() in functions.php. --> <title> Why Attend the Pasture and Livestock Management Workshop? | Texas A&M AgriLife Research & Ext

overton.tamu.edu

They also have a lot of ag. info. that they publish that is very helpful. Some of it is available on their www. The title of the facility might be TAMU Research Center if you have a problem with the title listed above.

 

[two_bit_score]

They also have a lot of ag. info. that they publish that is very helpful. Some of it is available on their www. The title of the facility might be TAMU Research Center if you have a problem with the title listed above.

Yep, it's been several years since i went to the live school in Overton. They don't do it live, in the field any more. A real shame since it was very helpful.

 

[zzvyb6]

The big money to be made is from losing it to buy stuff that your HAY BUSINESS needs. This take an accountant and a business name and stuff to depreciate. The goal is to get you into a lower tax bracket.
I had a decent haying tractor already, but bought a junk rake, junk baler, and a worn out stacker wagon. Parts from TSC, Rural king and a few dealer purchases were necessary. I didn't plant, fertilize or repalce any of the fields. I told horse owners that it's baled weeds. I run out every year. I do about 15 acres. That's plenty.

I should point out that I signed up to help a local dairy farmer first, so, without any previous experience, I learned how to run the equipment and to do it safely. My niece got me some stickers "This Machine Wants to Kill YOU" and I can't agree with it more.

 

[ericm979]

The big money to be made is from losing it to buy stuff that your HAY BUSINESS needs. This take an accountant and a business name and stuff to depreciate. The goal is to get you into a lower tax bracket.

My understanding of self employed taxes comes from being a consultant. Farms get different rules which are way more complex. I got the IRS's guide for farmers and even that simplified version made my brain hurt.

I'm trying to understand how haying 15 acres would get you into a lower tax bracket vs simply not farming at all. I'm assuming it's not the primary income, unless those baled weeds sell for a lot more than I think they would.

Can you depreciate against more income than the farm generated? Like for startup costs?

 

[zzvyb6]

My understanding of self employed taxes comes from being a consultant. Farms get different rules which are way more complex. I got the IRS's guide for farmers and even that simplified version made my brain hurt.

I'm trying to understand how haying 15 acres would get you into a lower tax bracket vs simply not farming at all. I'm assuming it's not the primary income, unless those baled weeds sell for a lot more than I think they would.

Can you depreciate against more income than the farm generated? Like for startup costs?

The problem I'm having now is that as a retiree over 75, my IRA is subject to the RMW rules. This plus the latest 'Social Security' raise (followed by an even larger Medicare cost has me on the tax bracket borderline. Yes, it's complex. That's why I employ a professional accountant and have a professional money management company handling all my SPIAs and investments.
BTW: I didn't use enough diesel fuel a year ago, so we upped it to stay within the right portions of farm guidelines. Horse hay (baled weeds) is selling for $8.00 per bale locally. Cash money to be made with delivery. New Tahoe needed for pulling delivery trailer. Gas, registration, license fees are deductible too. My IRA is earning more money per year than I made as a professional automotive engineer. I chose a cash payout instead of a pension and THAT is keeping me in the game. I set my SPIA payment goals to match my former income. When I was working, I lived below my means and still do.

 

[TigerFanatic1]

my feeling is that OP is looking for justification to jump into hay equipment & business. maybe the profit is secondary. that being the case, take the plunge. hopefully the operation can somewhat offset the greater monthly payments.
best of luck

Hey guys, haven't been on in a while as work has been getting in the way of life. I'm not really looking to get into hay, but profit which would be great is a secondary. My current situation is bushhogging it 3-5 times per year, which I estimate is 40-50 total hours and $600-$800 in diesel plus just normal wear and tear on my equipment. Ideally, I'd like to do something with it to keep it looking nice and cost me less or even make a profit (even if that profit was gaining equipment from the work put into it). In all honesty, if it would take me 200 hours per year to cut hay and make $1,000 then I would likely just lease it or have someone cut on shares as $5 per hour and 4 times the tractor hours wouldn't be worth it. But, if after write-offs and potential sales I thought it justified the time, then I would do that too. I don't have anything that I just want to do with it, just looking at several options and Mrs. TigerFanatic said tree farm is a no-go. I've never explored any tax advantages of any type of farming, so doing a lot of reading and thinking about it.

 

[EddieWalker]

Better to try and see how it goes then to never do it and wonder about it forever.

Worse case scenario is that you don't like making hay, and you sell everything you bought. Prices are holding on most things, so it's doubtful that you will lose very much money if you decide to sell off the haying equipment.