Buying Advice How do

[Brianinozarks]

Looking at new tractors. And wondering how anyone can afford to buy a $100,000.00+ tractor??

 

[Utopia Texas]

The average weekend warrior does not own enough land to need a 100k tractor and most of the 100 hp and up units I see in my area are used for land leveling by construction companies. The really expensive/huge units are used by local rice farmers that raise 2,000-8,000 acres of rice each year. Commercial businesses can depreciate the cost over a number of years, a individual cannot.
I am retired now but still have a 22 acre pecan orchard and am glad this was never my main income. With the cost of my 75 hp tractor, sprayer, mower, harvester, pecan cleaner, pecan sizer, pecan crackers and pecan sheller plus barn I probably have 750k in machinery. Also a 55k irrigation system. I would have to live 4-5 lives to make any profit off this set up. I really am sad that the U.S. No longer supports small family farms as it was in the past. I see more niche farms popping up around the Houston, Texas area that cater to the "farmer's markets" but it is 24/7 work for little pay.

 

[smstonypoint]

Most TBN members own tractors in support of their rural/suburban lifestyles -- tractors and associated equipment are consumption items in that the owners obtain satisfaction from their ownership and operation (and if they are paying $100K+ for a tractor, they must have a lot of discretionary income). Machinery is a factor of production for commercial farmers and the machines have to pay for themselves in the long run.

Owning to size economies, commercial row-crop farmers can't afford not to own large (and expensive) equipment. Here are some data from the USDA: http://docshare01.docshare.tips/files/23846/238469592.pdf.

John Deere now has a 48 30"row planter with a capacity of 75 acres/hour (John Deere DB12 Planter DB Planter Series Planters JohnDeere.com).

Steve

 

[BrokeFarmerJohn]

100k doesn't buy as much tractor as you think it does, when your looking at farm machinery that's a small tractor or a good size used one.

If you look at the case magnums, there in the 300k range after your all said and done. Then you gotta buy the ploughs, drills, disk ext ext.

After your done tilling and seeding, time for harvest, combines demand a real pretty penny. It wouldn't take long to wrap up over a mill in equipment for a small farm.

It seems like a lot of money but as long as you make enough $$ of the crops to make your payments your alright, 1-2 generations and most of all the equipment will be paid off. Just takes time.

Edit: if the equipment is used for a business like a farm it's tax exempt.

 

[BrokeFarmerJohn]

Look up prices on Kenzie planters lol, there great planters but cost a lot.Kinze Planters

Also look up a draper head for a combine and how much those are. 30ft flex Case draper head is 83k base price, they go up to 45ft wide. Build & Price Custom Agricultural Equipment | Case IH

 

[hawkeye08]

A local farmer owns some land, but rents a bunch more here. He always has newer machinery and one day when he was across the road working, I walked over and talked to him... He constantly scours the machinery sales across the country. He buys low, uses a few years and sells it, often for more than he paid. He has a trucker(s) friend that he trusts to inspect equipment and haul it. He has been doing this for years, before the internet made it easier (easier for others to bid also).

His son is working with him, but doesn't have the skills yet for operating or maintaining... They make it work though. They farm the 40 acres across the road from us and when wheat is ready to harvest, they come in with 2 big combines, 30-40' headers, only takes a few hours. The have a large truck to service equipment in the field with compressors, welders and all the tools you would need. They also have their own semis to haul with, at least 3 that have double trailers... it is a sight to see for sure..

 

[fishheadbob]

I once had a farm friend refer to "perpetual debt economics". Most farmers never own the big stuff free and clear until it's pretty worn. The object is to have enough land or livestock to generate sufficient income to make regular payments while squeaking out a living. Hawkeye in the above post refers to his neighbor farming 40 acres, you bet your booty that's just one of many parcels this guy works. When I was young I had a job where I signed farmers, among others, up for Social Security. Most of those guys farmed 100 or 150 acres max, had 40 dairy cows, and their big tractor came in around 60 or 80 horsepower. Now my neighbor milks 2300 cows, has 300 horse equipment, a payroll to meet, and all the headaches that go with being a small to mid sized employer. there are much bigger dairies around.

 

[Oldoak]

It's all about individual personal CHOICES we all make in life. Sources of income, life styles, investments, etc. with some good luck or bad luck thrown in the mix.

 

[4get gto]

And I'm wondering how people can afford or need a 20k + compact for a 1-2 acre yard.

 

[Cataclysm]

From what I gather around here most of the 100 plus acre farms wouldn't exist with out federal subsidies. Seems they still have to hustle for a living.

 

[RSKY]

And I own a $15-20,000 worth of tractor on a 1-acre lot. It is six years old and had 397 hours on it this afternoon when I got off. Considering what we have done with it the past six years it has paid for itself three or four times over. Tractors are tools, use them correctly and they pay for themselves. Even if it is your most expensive toy.

On the other hand there is a tracked Caterpillar tractor sitting in the field behind our house that has sat there since August of last year. I estimate it to be over 300k new. HOW could the owner let it sit for so long.

RSKY

 

[oosik]

Two days ago I took a motorcycle ride down south into the area called the Palouse. My property here is at the very northern tip of the Palouse - world famous for wheat farming.

All the farms are out putting fertilizer on their crops - subsoil injection systems of some type. I started counting and by the time I had finished my 300 mile loop I had a total of eleven of those big Case IH tractors with "triangle tracks" instead of wheels. I'm guessing it was simply a "red" day and all the green monsters were resting somewhere else.

Several of the larger operations trade in their larger tractors at the end of the warrantee period so that the unit is always under warrantee.

 

[Oldoak]

I estimate it to be over 300k new. HOW could the owner let it sit for so long.

Many, many thousands of acres of farm land in the wheat belt are owned by large corporations but farmed by people living in the area. Those corporations own everything from seed production to the packaged consumer food product on the grocery shelves. What machinery cost isn't written off is passed on to the consumer. Just look at the price of a box of cereal!

 

[coobie]

chump change..

 

[BrokeFarmerJohn]

chump change..

Pocket change more like lol, don't even have to crack open the bill fold for that.

 

[AGRIMAN]

On the other hand there is a tracked Caterpillar tractor sitting in the field behind our house that has sat there since August of last year. I estimate it to be over 300k new. HOW could the owner let it sit for so long.

RSKY

I can't answer for the tractor, but a new 6 row cotton picker is north of 750K and you use it 3 months out of the year.