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Strathcona, mn | How Much Per Month/Year is huge for a beginning farmer..... I am a "beginning 1st generation farmer" and even if I can pencil it out for a newer/new piece to run cheaper than what I am based on a per acre over time basis, that doesn't mean I can afford to cash flow it on an annual payment base. I tell every one that works for or helps me not to complain about my stuff because everything has been upgraded many times. I buy cheap older stuff, fix it up and then turn it when I find a deal on newer equipment. I also buy when a deal is good, don't wait till you "have to have it". I run around 2500 acres and do about 1000 acres of custom operations per year. We are full spring and fall tillage so hp is necessary for tillage passes. I keep my payments low enough that If I get a bad PP year I can still cash flow and not be burried in annual payments. I plan all equipment purchases so I am redudant on all operations. If something breaks I can put something else to use to finish operations. I try not to hire anything but ariel spraying done. I also have the motto that if I can find a bigger piece in the same condition for the same price or cheaper I buy bigger than what I need. This has put me in position to pick up land when available without having to adjust my equipment line. Timing is everything here, I make sure I can get the whole crop planted in under 10 days, 6-8 preferably. If you miss a window of opportunity it can cost you a fortune, it did here last year with an early fall frost. I don't mind wrenching on equipment, it jsutifies farming being a full time occupation for me. If I didn't keep busy "making money" then I'd have to go work some where else. My time is worth more to me than a standard pay check at an off farm job. Every hour I'm working on equipment I'm making $90.00/hr (local dealers shop rate). To those that say net worth/ballance sheet is everything..... you are wrong! Happiness in life is my goal, if I die rich or poor is irrevalant....... I just want to be able to enjoy what I'm doing along the way, hopefully I can leave something for my kids. | |
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How do you afford expensive tractors / machinery?
