Price Check 4410 in IL - pricing and question about Ag use.

BloomingtonMike · Sep 1, 2004

I recently bought 6.05 acres. 6 acres is considered a hobby farm. My father in all (deceased) was the previous owner and he had part of it farmed out - Alfalfa/Hay production by a friend. I bought the land and have never farmed myself yet. I am buying a tractor and for now the hay farming will stay with some help from the friend that has done it so far.

First off
2004 John Deere HST with R4s and a 2001 420 loader with new bucket:
$20,250.00

New 72" MMM - $2830

How are those prices.

What is to stop me from buying this tractor for ag use and still getting help with the hay? sure could use the tax break.

Cliff_Johns · Sep 1, 2004

Roughly where in IL? Makes a difference.

Go to the Deere web page and get the list price build for the 4410, and post that, but 85% of list tends to be an OK deal in Northern IL, but it depends on availability, how much the dealer needs to sell one, how close you are to Chicago, delivery fees to the dealer, local cost of mechanics/hour for set up etc.

Cliff

rockyridgefarm · Sep 1, 2004

Hi!

List price on the tractor and loader is $25,244.00, so $20,250.00
sounds great. If it were me, I would strongluy consider going down and up; down to the 4310 and up to the 430... (Actually I DID do that...)

The 4410 is about $1800 more to get 3 Hp. (warning, Deere literature alludes to a far more significant difference, but it ant so...) I have yet to hear any 4310 owners wish for the 3 Hp. (but you won't hear 4410 owners wishing they had 3 less Hp.)

The 430 is a significant improvement in loaders. It usually is $500 over the 420. But since they are quoting a used 420, it might be significantly more...

As to ag exemption, I wouldn't dare to venture any advice, talk to a tax person in your area...

timb · Sep 1, 2004

It will help to know what type of ag use you're looking for - only what's needed to meet the legal / tax needs definition in your area (whatever that is) - or do you have specific farming jobs in mind? A CUT can do a lot of things around a farm - but depending on how you configure things it may be very poorly suited for certain tasks (yet excel at others). The HST and R4s you mention are good examples. Great for some things, bad for others.

dmp437 · Sep 1, 2004

Believe it or not there is a magazine called "Hobby Farms" and in the March/April 2004 issue there was a good article about about hobby farms and tax issues including Section 183 of the tax code. Section 183 deals with hobby farms and gives guidelines so that the IRS can tell who's legit and who is scamming looking for an easy writoff.
We're seriously looking into it ourselves.

DDT · Sep 1, 2004

I too bought a 10 acre home stead. half is tillable. Since I do alot of yard work for ours, my 4400 is a tick small for tilling 5 acres. Oh it will do it just takes a while. I had a 4300 and went to a 4400 for the 3 hp ( I may be the only one that did this) but it made a difference with the 5' bush hog and 70" tiller. Now I am thinking about trying to get into a 47__ model. I need more power.

BloomingtonMike · Sep 2, 2004

I live in Bloomington wich is about smack in the center of the state. I have a few dealers around.
Dealer now says $23,500 and I get a new loader and the MMM. Ineed to check on if it is the 430 or 420.

I am moving into this place and I have never farmed. However they are (friends of my father in law) farming hay on the property. Maybe I will help out and still give them the hay and sell it.

I would really like a copy of that article if someone has it. I will also try and search it out. Thanks for the tip.

Mostly mowing and snow removal right now is what I will use my CUT for and the little help with the hay if it saves me $$.

BloomingtonMike · Sep 2, 2004

I went ahead and ordered the back issue of Hobby Farm Mar/Apr '04 magazine. Thanks for the info.

Let me know about any other research on this - I am new to owing a Hobby Farm.

cowboydoc · Sep 3, 2004

The $20k price would be good for a 4420 but for a 4410 I would get it lower. You should be able to be down around $19k for the leftovers.

As far as ag use on 6 acres for a $20k tractor you should be able to show how you are going to make enough money to offset the purchase of a $20k tractor. I wouldn't want to try and put that over on the IRS unless you have some serious cropping going on with that 6 acres. 6 acres of hay would take you 10 years or more to recoup that $20k much less make any money. Also what the IRS is going to look at is time. To even think about qualifying you should be spending 20 hours or more a week doing the farming operation.