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Happened Again

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Allan in NE

07-11-2005 05:16:40




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Mornin' All,

Neighbor across the river dropped $75K on a new swather.

Yes, he cuts a lot of hay, feeds a substainal number of cattle and I'll probably be singin' a different tune in a year when I'm in the heavy stuff, but drat!

I cannot see the justification in that kind of money for a new machine when these old devils will gobble hay like a lotful of pregnant mama cows.

Dunno, maybe some folks are just more mechanically minded than others?

Allan

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FC

07-11-2005 09:46:19




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 Re: Happened Again in reply to Allan in NE, 07-11-2005 05:16:40  
Been watching it for years. Sometimes they get away with it and sometimes they don't. I remember growing up a guy bought ~160 acre farm across the road from us - gave roughly $30,000 for it in about 1970. Dad swore he would lose the place because of the "high" price he paid. He is still living on it and in fact has bought a couple other places adjoining it. I still say prices now are out pacing pay back, but I guess only time will tell. I had to put $13.00 into a "new - used" tire on my 50 year old hay rake last week. Guess I ought to go buy a new rake, but it has done well for 50 years so I think I'll keep it. The windrows seem to look ok yet.

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KEH

07-11-2005 08:48:05




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 Re: Happened Again in reply to Allan in NE, 07-11-2005 05:16:40  
Allan, Did you get the chain on the baler fixed? After thinking a bit(thought process slows with age) I'm wondering if the chains are not too long. When I replaced the chains on my 847 the new ones were too long and I was going to have to take a link out if I had kept the baler. KEH



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KEH

07-11-2005 08:47:35




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 Re: Happened Again in reply to Allan in NE, 07-11-2005 05:16:40  
Allan, Did you get the chain on the baler fixed? After thinking a bit(thought process slows with age) I'm wondering if the chains are not too long. When I replaced the chains on my 847 the new ones were too long and I was going to have to take a link out if I had kept the baler. KEH



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KEH

07-11-2005 08:45:34




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 Re: Happened Again in reply to Allan in NE, 07-11-2005 05:16:40  
Allan, Did you get the chain on the baler fixed? After thinking a bit(thought process slows with age) I'm wondering if the chains are not too long. When I replaced the chains on my 847 the new ones were too long and I was going to have to take a link out if I had kept the baler. KEH



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Allan in NE

07-11-2005 09:23:36




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 Re: Happened Again in reply to KEH, 07-11-2005 08:45:34  
Hi Guy,

Know what I think? I suspect that someone, somewhere along the line put those darned crossbar bolts in upside down or something.

Nebraska Cowman told me to check the clearance and I went all thru it being very careful to inspect everything for adjustment and wear. Nothing is touching that roll; so, don't know where those grooves came from.

However, the main chain adjustment is clear down against the stops, so I'll just bet you are right in your thinking. They put a new chain in it and didn't take out the darned extra link/bar.

I'll have 'er purrin' quiet before another season tho, you can bet on that, 'cause this little outfit is just too good a baler to retire this young. :>)

Allan

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Allan in NE

07-11-2005 09:20:36




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 Re: Happened Again in reply to KEH, 07-11-2005 08:45:34  
Hi Guy,

Know what I think? I suspect that someone, somewhere along the line put those darned crossbar bolts in upside down or something.

Nebraska Cowman told me to check the clearance and I went all thru it being very careful to inspect everything for adjustment and wear. Nothing is touching that roll; so, don't know where those grooves came from.

However, the main chain adjustment is clear down against the stops, so I'll just bet you are right in your thinking. They put a new chain in it and didn't take out the darned extra link/bar.

I'll have 'er purrin' quiet before another season tho, you can bet on that, 'cause this little outfit is just too good a baler to retire this young. :>)

Allan

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North of Linoma Beach

07-11-2005 08:27:44




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 Re: Happened Again in reply to Allan in NE, 07-11-2005 05:16:40  
Like my Dad told me many years ago, It was Granddad watching the tail end of the horses and mules, and Dad sitting on the JD "A" and IH "M", that made all the money so the kids could p#ss it all away on their big machinery. It never fails to amaze and amuse, the ones who are interviewed and b##ching and moaning about how they can't make any money farming are always in the coffee shop. One other thing, these farmers and their well kept machinery and buildings are getting the same price for their crops/livestock as the ones who let their equipment go to h#ll, and have never put a quart of paint on their buildings.
I remember one neighbor, had a 1206 and a 7 bottom plow in the hills of Monona County, Iowa, where it is so rough, that the middle 3 bottoms were never in the ground in some of the swales, plowing up every waterway, hauled livestock and shelled corn, (and done a p#ss poor job at that), bragging about how much money he made the previous year, and my dad told him that he had paid more than that in taxes. I took a lot of S##t in school because of my dad's old machinery, but EVERYTHING was paid for, and thing I try to live up to is what the banker at Clarke Bank in Papillion, Nebraska told him one time: "The door to the vault is always open for you when it comes to your judgement" . Now the hill ground is worth more than the bottoms, because of the yuppies and their homesites, well someday when what we OWN is sold, after owning it the last 100 and some years, we can laugh long, hard, and loud at the ones who farmed themselves right out of business.

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Allan in NE

07-11-2005 08:45:08




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 Re: Happened Again in reply to North of Linoma Beach, 07-11-2005 08:27:44  
Yes Sir,

I've been in that whirling vortex. There is only one way out and it darned sure isn't out thru the top; don't kid yourself.

And, the bottom of that mess spins hard, real hard.

In the past few months, it has at long last finally dawned on me that I was the lucky one by going completely flat-a$$ed broke and living to tell the tale.

It taught me a hard lesson that many have yet to learn, I'm afraid. Spend a quater of a million on a goofy combine and you're gonna someday pay the piper. You can count on it.

Rotary, my backside. Give me that old, well used $1400 L2 diesel. It will outlast all of us here. :>)

Allan

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Galen

07-11-2005 06:10:00




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 Re: Happened Again in reply to Allan in NE, 07-11-2005 05:16:40  
Yup - I get the same feeling when I deal with BIL. He just bought a $23,000 Yuppie tractor for 14 acres of mostly trees, ponds, hills and farmstead. Has close to $40,000 in "toys". Never has used a tractor, doesn't know how to use one and spends all this money on something that has a life expectancy of under 10 years. He has (HAD) more money than sense. I've got about $7,000 total invested in my old "crap" (as he puts it). Granted, I'm not running a big farming operation, but I do a HECK of a lot more on my 101 then he does on his 14. One of these days it will come back to bite him.

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RickL

07-11-2005 05:58:47




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 Re: Happened Again in reply to Allan in NE, 07-11-2005 05:16:40  
Allen in NE; You need to quit worry about what the neighbors do. I know what you mean as I assemble machinery as a side line for implement dealers. The price yu are talking is common,Planters a $5000 to 5500 per row unit,rakes $9000 to $10000.00 tillage is in mid 30000.00 etc. Large square balers $60,000.00 to 80,000.00.They just roll payments if you know the real paper work on alot of it. The hay equipment per season does get more use than alot of the other items in my area thou. Combines are well over 100000.00 some are now at 200000.00 etc. Alot of then like new paint and warranty and will buy just for it as they won't repair a brokeN bolt etc. DOING WHAT I DO I KNOW THIS FOR A FACT. In regards to your old round baler if it works for you then nothing else matters. In my situation what few rounds I have done I have net wrapped. All my hay is shipped. I do all small square if possible, better price and way more demand. I know you don't like little square but it is the best way for me and it will always sell the quickest for me as I don't have any cows. My problem at present is I am allready sold out and have bookings yet to fill. Anyone have good stuff they need to get rid of.

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Indydirtfarmer

07-11-2005 05:53:53




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 Re: Happened Again in reply to Allan in NE, 07-11-2005 05:16:40  
Howdy Allan!

Several schools of thought on buying new equipment....

One is "Give it to the dealer or give it to the IRS". The trick with that one is you have to be MAKING money to need a tax deuction....

Next is the need for future expantion. Buy newer/bigger with an eye on the future. Unfortunately, most of us are stuck in the present at best, and the past in all likelyhood.

Also, consider ones age. If I recall, you're in your 60's right? No need to make out a 50 year plan....

My son is doing everything in his power to convince me WE need a NEW tractor. I'm not convinced HE needs one, and I know beyond any question I don't need one.

There are about as many (good) "economic theories" to successfully running a farm as there are farmers. Mine has always been, "If I can't write a check for it, I don't need it". (Only exception was a combine purchased 4 years ago) That theory serves me well. It works well IF you want to stay the same relative size of operation. To me, it seems like the guys that keep buying BIGGER/BETTER/FASTER equipment MUST continually enlarge their operation to keep pace with their PAYMENTS.

All this from a guy who just 3 years ago, went from a sickle bar mower to a disc mower, and 2 years ago, bought my first round baler.....

Just an old "stick-in-the-mud" farmer.....(But my stick is PAID FOR!)

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Coloken

07-11-2005 05:47:20




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 Re: Happened Again in reply to Allan in NE, 07-11-2005 05:16:40  
I will hit you with another idea that has bugged me for years. How can a rancher pay 40,000 dollar for a pickup to haul bales a mile or two out in the pasture feeding cows? And maybe drive a few miles to town for food.



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agman

07-11-2005 05:42:01




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 Re: Happened Again in reply to Allan in NE, 07-11-2005 05:16:40  
He can't afford to be piddling around with junk like you can on 10 acres, I bet the forage he is cutting could make a $75k difference in feed value after a couple of years if he wasn't timely on getting it cut. Kind of like your $500 heap of scrap metal you call a round baler, roller worn all the way down to the metal. Serious businessmen can't run a business of large scale on junk that is only working half the time. That is why they buy it, wear it out and sale it to hobby guys like you. A little different world. I bet that 75k swather would knock down 10 acres for every 1 acre you put down. Just my thoughts. Have a good day.

Agman

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Matt from CT

07-11-2005 08:35:00




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 It's not what you gross... in reply to agman, 07-11-2005 05:42:01  
It's not what you gross.
It's what you net that matters.

> Serious businessmen can't run a business of >large scale on junk that is only working half >the time

Everyone's probably right here...if you're investing $75k in machines, need to get that money back. (And certainly things like leases for tax purposes or quick-trade-in while the value is still high are financial tricks to work).

Invest $5,000 in machinery, need to get that money back.

My suspicion, backed up my observation of the few farmers in my neck of the woods is both models work as well if they're done well. Low cost, low volume, not a lot of help needed. Guys with bigger equipment need more hired help to keep operations their size running. End of the year, they're both netting the same.

(The one big difference possibly being big operators who *own* their land getting the advantage of land appreciation. Equipment & Labor is the same if you rent or own 1,000 acres...and with long-mortgages, the rent & ownership costs are probably 'bout the same. Of course, at the end of 30 years when it's time to retirement, the guy with 1,000 owned has a hell of a lot more money than the guy with 200 acres or the guy with 200 owned/800 rented.) Of course, land being what it's priced at around here, 200 acres is a *very* comfortable nest egg!

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Allan in NE

07-11-2005 07:29:58




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 Re: Happened Again in reply to agman, 07-11-2005 05:42:01  
Oh Heck Yeah,

I think the local dealer really gets ammused at me 'cause I'm always in there sniffin' thru his "killer" row and then, I'll try to dicker him down on his already 'salvage iron' price. :>)

Just wish he'd call when he gets these old sweethearts in on trade; shucks, he already knows he has me as an out fer this 'old junk' and it would save me a lot of trips to town.

The way it is, I'm spending way too much time "shopping", but by damn! I'm havin' fun makin' this old stuff live again. :>)

Allan

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txgrn

07-11-2005 06:35:34




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 Re: Happened Again in reply to agman, 07-11-2005 05:42:01  
At last count, I think he was up to 320 acres on his new farm.

But it is truly amazing how well this stuff lasts..... and how much new costs.

Mark



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txgrn

07-11-2005 06:35:20




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 Re: Happened Again in reply to agman, 07-11-2005 05:42:01  
At last count, I think he was up to 320 acres on his new farm.

But it is truly amazing how well this stuff lasts..... and how much new costs.

Mark



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Indydirtfarmer

07-11-2005 06:20:52




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 Re: Happened Again in reply to agman, 07-11-2005 05:42:01  
Assuming that you're a big-time operator with a massive cash flow, (because you take up for that style of management) you would be well served by investing a couple grand in a Dale Carnegie (sp) course.... A little diplomacy goes a long way.



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Allan in NE

07-11-2005 06:32:27




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 Re: Happened Again in reply to Indydirtfarmer, 07-11-2005 06:20:52  
Mornin' John,

Naw, he didn't mean anything by it, he was just trying to make a point.

I know I'm just a silly old man a yappin' on the Internet, but my ace in the hole is that I've seen the other side of the bridge.

It tends to give a feller a totally different outlook on things. Gawd! I love my old junk. :>)

Allan



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txgrn

07-11-2005 06:37:31




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 Re: Happened Again in reply to Allan in NE, 07-11-2005 06:32:27  
Yepper. Nice to go to the mail box and only have to contend with junk mail..... .no bills for high $$$ swathers..... but if you need em, you need em.

Mark



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Allan in NE

07-11-2005 06:43:39




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 Re: Happened Again in reply to txgrn, 07-11-2005 06:37:31  
You Bet!

If I had 6 or 7 circles of alfalfa, I'd be fer buying the new swather too. But, fer my little 200 acres of hay, that old junker is gonna serve me just fine.

I'm not a bit afraid of gettin' my hands greasy; iron is iron, be it old or be it new. :>)

Allan



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txgrn

07-11-2005 08:01:56




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 Re: Happened Again in reply to Allan in NE, 07-11-2005 06:43:39  
Iron is iron bro.



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agman

07-11-2005 05:41:37




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 Re: Happened Again in reply to Allan in NE, 07-11-2005 05:16:40  
He can't afford to be piddling around with junk like you can on 10 acres, I bet the forage he is cutting could make a $75k difference in feed value after a couple of years if he wasn't timely on getting it cut. Kind of like your $500 heap of scrap metal you call a round baler, roller worn all the way down to the metal. Serious businessmen can't run a business of large scale on junk that is only working half the time. That is why they buy it, wear it out and sale it to hobby guys like you. A little different world. I bet that 75k swather would knock down 10 acres for every 1 acre you put down. Just my thoughts. Have a good day.

Agman

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Ken Macfarlane

07-11-2005 05:54:46




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 Re: Happened Again in reply to agman, 07-11-2005 05:41:37  
I'm with Allan, being careful with money was what got farmers through in our area. They were the richest guys around in the depression and had employment to offer others.

75000$ swathers have their place,if he makes 15,000$ off it in a couple of years and sells it for 65,000$ he comes out ahead and probably didn't invest any time.

But if the mechanically minded farmer can get 7500$ out of a 2000$ swather that he ends up owning is further ahead by any business teachings I've seen.

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Flurette Farm

07-11-2005 05:41:03




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 Re: Happened Again in reply to Allan in NE, 07-11-2005 05:16:40  
Someone bought these old devils new or they'd still be at the dealers. Maybe he just has money, good credit, or a benifactor and don't like trouble and breakdowns. If he's a serious farmer or rancher more power to him its good for the economy. His and ours..... .....



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Bobg

07-11-2005 07:35:44




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 Re: Happened Again in reply to Flurette Farm, 07-11-2005 05:41:03  
I have a neighbor who farms 1000 acres of dryland in southeastern Washington, typical yields are 100 to 120 bu/acre. A friend of mine and his brother farm 5000 acres and he's always complaining about not making any money and always has new equipment. My neighbor has older equipment says he's making money. He takes good care of his equipment, his combine is at least 20 years old. In my area most of the farmers have new combines every other year and have four or five of them. From what I see most of them are just trying to keep up with the Jones.

Bobg

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