Ranch startup costs

[golfgooroo]

I'm interested in your opinions. I've started a small ranching operation a few years back and it's gone well. My wife's family owns the land and I tend to the my cattle and theirs in which we currently have equal amounts of cattle. They are at retirement and are on the way out of the business. Thus the question, I currently have a Kubota 3130 and it has served me well. They own a JD 5210 and a JD 1530 and a cattle trailer. I was thinking of buying these from them so I could depreciate them and provide them with income. However, the JD1530 is quite old and is only used for hay, and the cattle trailer is 30 years old. Before I spend any money maintentance, I'd like to make a fair offer to own it outright. Given the circumstances, any advice on what a fair value of these would be:

JD1530 1970s model tractor
JD5210 (approx 1800 hours, runs good but no rear remotes)
15'x6' cattle trailer but needs (new tires, new springs, new bearigns, new decking, and lights)

Thanks-

 

[two_bit_score]

I'm interested in your opinions. I've started a small ranching operation a few years back and it's gone well. My wife's family owns the land and I tend to the my cattle and theirs in which we currently have equal amounts of cattle. They are at retirement and are on the way out of the business. Thus the question, I currently have a Kubota 3130 and it has served me well. They own a JD 5210 and a JD 1530 and a cattle trailer. I was thinking of buying these from them so I could depreciate them and provide them with income. However, the JD1530 is quite old and is only used for hay, and the cattle trailer is 30 years old. Before I spend any money maintentance, I'd like to make a fair offer to own it outright. Given the circumstances, any advice on what a fair value of these would be:

JD1530 1970s model tractor
JD5210 (approx 1800 hours, runs good but no rear remotes)
15'x6' cattle trailer but needs (new tires, new springs, new bearigns, new decking, and lights)

Thanks-

I think you might get better responses if you posted some pictures and let people know where this is located. The condition of the equipment and the location will have a lot to do with the value.

 

[JoeinTX]

two_bit is square on but based upon generalaties I might offer something like this since it's among family and you know the equipment. Assuming the tractors are in good mechanical condition w/o loaders or cabs and are 2wd:

JD 1530-$5k
JD 5210-$10k
trailer-$1k

All very arbitrary and just based upon general market values, see. But, if as I surmised above, I would be comfortable offering $15-16k for all three to the in-laws. I think it'd be a good faith offer and decent money for the equipment.

 

[Western]

I agree with the other guys, but what I would do 1st, is ask the in-laws what "they" think it is worth, then you know where you stand.

You already know the equipment, that is better than buying "unknown", that to me is worth something.

 

[hizoot]

Be careful...this can turn into a rif

 

[golfgooroo]

I'll supply some pictures to help provide a clearer picture. But yes the tractors are 2WD, no loaders, no cabs and in Decent condition.

The trailer on the other hand is 30 years old and in poor condition. Thr ranch is located in TX to help with value assessment.

Thanks for the continued advice.

 

[MMagis]

To be honest, the trailer doesn’t like its worth more than scrap price. The things that need fixed are what make it a trailer. Personally, I wouldn’t pay much more than $1k for a 15’x6’ cattle trailer that worked. I sure wouldn’t pay that for one that’s needs everything replaced. Sounds like it needs to make one more trip, to the scrap yard. Maybe a pic would change my mind, but that’s a lot of work no matter what. I can’t imagine it being worth more than a couple/few hundred dollars.

 

[golfgooroo]

Your assessment is not far off of the trailer, but in my opinion i can fix it for less than i can buy a decent used one. But a fair purchase price is the key to that equation. I've been using it and just can't justify the risk of squeezing 8-10 calves into a trailer that I feel needs significant maintenance. The problem is always that these trailers are only used 1-2 times a year and the trip is typically 20 miles roundtrip.

 

[TripleR]

I agree with hizoot and advise you proceed with caution and sensitivity. I have seen how things are viewed differently at different stages in life and from both sides. For many of us older folks it is hard to realize the tractor or equipment we bought years ago is no longer new or worth nearly as much as we think it should be. No doubt there are some very knowledgeable individuals on this forum, but I might be inclined to speak with your parents to see if you need to get an actual appraisal by someone you all respect.

There are regular columns in Successful Farming in which family squabbles coe from such benign transfers.

Of course you know your situation far better than any of us, but I have been the son and now the father and it does look different over here than it did over there; just something to think about and good luck.

 

[MMagis]

The problem is always that these trailers are only used 1-2 times a year and the trip is typically 20 miles roundtrip.

Not sure what you have around you, but I'm able to rent one locally for $50 for a half day, $100/full day. Not quite as convenient as having one in the filed when I need it, but financially it makes more sense.