SW WI | HeyhayJCM - 6/17/2015 13:20
I have a question. You say you won't own a combine anytime soon. Why not? With machinery prices going down you could buy a cherry F3 gleaner or a 1440 international or a Massey 8560 for 10 grand...and even after paying for fuel... (without charging for your time) ...it would pay for itself in 2 years if you are paying 30.00 an acre custom rates. Baby the thing....look over every inch of it each year...and no you would get a very quick payback. Then after year 2 you will be saving 6,000.00 a year and be harvesting on your schedule, at optimum moisture, and when field conditions are right.
And if u take care of the machine. ..chances are you can sell it down the road for as much as u pay for it. ZERO depreciation.
Just a thought.
Josh Moorefield
Josh,
You bring up very valid points, and at first glance, you are correct. But, here is where my issue with a combine lies. At 29 years old, I can only borrow X number of dollars. So, let's say I buy a $10,000 combine. Then I buy a $2500 bean head and a $2500 corn head. Get it home and I will spend $1500 changing oil and filters, every year. Then the belts chains sprockets, rocks AC bushings augers etc will need attention every year, $1000 easily from my experiance. Paymebt over 5 years is going to be roughly $3500. Between maintenance and repairs, $2000. Cost of operation is going to be $5500. I have to run it, I have to go to town to get parts, I have to wait for the parts and fix in the sun and watch it rain. During all of that, my cost of operation will be roughly $0.25 a bushel. Hiring it done is going to average out at $0.26 a bushel. With that added penny I am getting a hired man, direct write off on my taxes, yield mapping, an $85000 combine that gets yearly inspections a bean head that will cut closer to the ground, leading to let's say 1/2 bushel more beans or $500 and a corn head with adjustable deck plates that will lead to let's say 2 bushel an acre or $600. My custom guy doesn't do custom work. He works with me on his timeliness and drives slow. I would rather pay him $35 an acre than own one or see him do more work elsewhere. In my eyes a combine is the worst investment. In 5 years that machine will see a minimum of 1000 acres if I don't gain more ground. There will be break downs. My thoughts and outlook, please debate back if you disagree. Thanks. Also. Thanks for all the other replies. |
What will be the greater return on investment? Dryer or precisionAg
