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Tractor value per 100 hours
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Kooiker
Posted 1/29/2024 18:41 (#10599578 - in reply to #10598767)
Subject: RE: Tractor value per 100 hours



We have a whole lot more tractors than what we COULD get by with.   Most of them are older tractors that are $10k-$25k type of machines


There is a lot of value in having backups/extras sitting around when you need them and there is a lot of time savings when you don't have to hook and unhook equipment 5-10 times per day.

If owning an "extra" 7120 allows you to do your own spraying and shop around for chems vs hiring the Coop and paying full retail prices for the chems, you'll have no problem at all justifying owning the tractor.    That's an easy $15-20/acre of savings.



Those "old" tractors are very cheap to own.   Depreciation on them is basically at a stand still and repairs/hour of use is usually much cheaper than newer/bigger tractors.     Basically its the interest cost of the money to buy it.      A $50k tractor costs $4000-4500/year on interest currently.   $25k tractor is half that.

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