I have purchased several pieces of new equipment over the last 38 years of farming. Some I paid cash when I purchased, others I financed. And in truth, it was no harder to make the finance payments then it was going without/making do , while saving to pay cash. I only purchase equipment that I need, and will actually show me return in productivity. A example would be a loader tractor. I need a loader tractor every day all year round to feed cows, and move manure, so this needs to be a reliable unit that doesn’t need constant repair and have down time. So if I buy a used tractor and pay cash, then start pouring money into it for parts and repairs, and have the extra cost of purchasing and maintenance on a back up unit. It will cost me just as much or more than the time payments on a new tractor. A new combine needs to have 3-4000 acres of crop ran through it every year to justify its cost. I have a friend that buys a new Case IH combine every two years, and gets new heads on every second combine. He cuts 4,500 acres per year. Pays cash, and says he always gets excellent trade allowance, and calculates his cost per acre on what he originally paid for the machine, and what he got for it when it was sold. These days the longer you keep a piece of equipment, it can actually cost you more, as the trade value on a ten year old combine is dismal compared to a two year old.
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Today's Featured Article - Restoration Story: Fordson Major - by Anthony West. George bought his Fordson Major from a an implement sale about 18 years ago for £200.00 (UK). There is no known history regarding its origins or what service it had done, but the following work was undertaken alone to bring it up to show standard. From the engine number, it was found that this Major was produced late 1946. It was almost complete but had various parts that would definitely need replacing.
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