Winkler, Manitoba Canada | Whfarms - 5/8/2021 18:48
Greetings everyone,
I am a 7th generation farmer in MN and I have the opportunity to run our family’s farm. I am currently in the expansion mode and have taken the operation from 250 acres to 550 and I plan to continue my growth up to 1000 acres.
I am trying to find a way to fix machinery costs with repairs and maintenance.
I have spent almost 25k on a 10 year old tractor in the last 3 months and I’m still not done with it.
Does anyone have input as to how to do this?
2019 I spent 65,000 on repairs
2020 I spent 35,000 on repairs
2021 I’m at 25,000 and I have a pile of fixes to complete post planting.
Input, thoughts or comments are appreciated
We deal with an accountant that tries to provide some management guidance as well. He mentioned that typically as capital cost allowance (depreciation) goes down that maintenance goes up. Kind of obvious but trying to find the sweet spot of lowest operation cost is a balancing act.
Your numbers seem high for the acres, but you did not mention the cattle operation in the first post, which changes things somewhat. New machinery unfortunately does not seem to be a guarantee of trouble free low cost operation anymore due to complexity of especially the engine systems.
Congratulations on 7 generations of farming. You are well ahead of us. My son who is taking over is generation 4.
Edited by WTW 5/9/2021 11:14
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Leasing new equipment vs purchasing
