Eastern Iowa | Winfields - 3/6/2012 12:58
Let's take a $125,000 tractor, which around here doesn't seem like much. On a five year term, that's $2300 and change a month, which I can't wrap my head around a farmer being able to pay down from cash cropping. And that's just one piece of machinery; most have multiple tractors, combines, etc..
Take a $20,000 disc. I can't see how it pays for itself; or how a farmer can afford to pay it.
Can someone help a beginning farmer out understand how farmers can have such expensive machinery and make it work? From my perspective, I just can't do the math!
Do a lot of work with it. 1000 acres X 200 bushels per acre of corn X $6.50 = $1,300,000.00. There may be some other expenses incurred :)
Edited by IaAngus 3/6/2012 15:31
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How do you afford expensive tractors / machinery?
