Amherst WI | barren - 1/17/2025 11:13
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.
It’s awful hard to downgrade equipment without serious tax consequences and in this environment a significant drop in the value as opposed to what it was worth a few years before.
25 year old JD tractor lost about $15k in value, no bid deal
5 year old JD tractor lost $150k, now that’s a problem |
Where do farmers see cost cutting in their operations
