20 miles west of Indianapolis Indiana | barren - 1/17/2025 12:13
Agree. Equipment is the Achilles heel for many farmers. If you can pay cash for it, not so bad. If you finance it the big payments are hard on cashflow, especially if you 179 it and are getting no tax benefits after the first year.
Additionally, new and bigger equipment sometimes requires more land to make things cashflow, especially if crop prices drop.
Another issue is pride. What will other farmers and landlords think if I start downgrading equipment. Got to keep the image up.
Plenty of folks pay cash for terrible equipment purchases in all reality. Doesn’t have to be financed to be a poor decision financially. Some of best purchases I’ve made were financed and able to be flowable because of their good ROI (tile, bins, sprayer for example). Others finance bulk handling systems for fertilizer and buy spreading equipment on loan and it is a massive savings above the cost to service the loan.
Edited by GrainTrader 1/17/2025 12:51
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Where do farmers see cost cutting in their operations
