New Equipment

[freewheat]

I wonder how new stuff will work in 20 years? Will the gadgetry hold together? Honestly, is this new stuff well built? I ask, cuz I frankly have no idea.

That is a lot of cash for some of that stuff. Crazy!

SHHHHH, listen. You hear that rumble? My dad and his parents are rolling in their graves.

[freewheat]

I wonder how new stuff will work in 20 years? Will the gadgetry hold together? Honestly, is this new stuff well built? I ask, cuz I frankly have no idea.

That is a lot of cash for some of that stuff. Crazy!

SHHHHH, listen. You hear that rumble? My dad and his parents are rolling in their graves.

[furrowtickler]

Lol - I would not get stuck up on % , 30% of $300,000 is a lot diff thatn $600,000 . That line was crossed a long time ago regardless of farm size.

[hobbyfrmr]

All my tractors are 30 years old and the combine is 21 years old. When I buy them, there is no depreciation left! There is a fuel gauge, engine temperature gauge, oil pressure gauge, some idiot lights that could/would/should work! I have been quite lucky with them so far. Naturally some repairs involved, usually at the worst time. I really don't farm that much so it works out the best it can. If those new prices are realistic, its going to take a lot of acres to run over in order to make the payments, so be prepared to farm more. When I do make some profit, usually I waste that money on my wife and children.

[farmaholic]

Now that was funny hobby.... the wasting part.

[SCS]

Glad I switched to a full meal deal of cattle in 94. Still expensive for equipment, but I can hunt for cheaper!

[hobbyfrmr]

Freewheat, I forgot to answer your question. I say yes, the modern machines are built "smarter", more fuel efficient, better gearing in transmissions and more comfortable. They should last 20 years pretty easy most farms are only putting 250 hours a year on them. That would make 5000 hours after 20 years. There is still plenty of use left in a 5000 hour tractor. The electronics may prove faulty over time, but after 10-15 years I would anticipate aftermarket components will be able to replace OEM.
I read an article somewhere, that companies like specifically named John Deere, own the technology in the tractor. So, going forward in the future the farmer/construction company owner can buy and use the necessary machinery but never really "own" the machinery because the manufacturer owns the technology. Eerily similar strategy to the seed companies. The wireless transfer of information about your production practices can easily be collected from the software technology owned by the manufacturer in the machine you bought but don't own. I never believed people when they would describe all this monitoring and technological control of a farmers seed and machinery. I used to think they were paranoid, tin foil hat type folks. Truth is stranger than fiction.

[biglentil]

It should last at least 1000 hours before coming completely unglued. Cost only a 1000 an hour plus fuel, maintenance and labour.

[fjlip]

Any one of the new $500,000 plus new iron costs a $100,000 the first year, work that into your cost per acre. Only math that make $$$ is on "older" used stuff.

[Richard5]

I still think too many operators think of equipment purchases based on annual cash flow of payments (and more if being purchased through leases).

This in no way reflects actual cash cost of owing the piece of equipment for period it is on the farm.

I also think its too easy to get caught in the trap of getting into a piece of equipment that you really don't need or fully utilize (ex: lease a new tractor verses buying a 3 to 5 year old one)

There will be a lot of farms that are totally fortunate with a pile of cash and choose to spend it as they like.

I am assuming it would be ones like the farm that flipped the complete line of low hour CaseIH equipment through RB auction this spring