Re: Horsepower/cost vs. productivity/profit

Posted by Goose on August 11, 2008 at 08:56:18 from (65.208.249.179):

In Reply to: Horsepower/cost vs. productivity/profit posted by wallacedw on August 10, 2008 at 20:04:03:

Keep in mind that a lot of the high dollar equipment is leased instead of farmer owned nowadays.

I suspect this is true of these huge 4 wheeler tractors in particular. The dealer leases the tractor for the term of the factory warranty, then sells it for the residual value. And the resale value of these big guys isn't all that great, unless you can buy a service contract or extended warranty of some sort, and that just adds to the price of the unit. If you ever have to put one in the shop, you're talking BIG bucks just to get it in the door.

The fellow who leases our farm land farms quite a bit elsewhere, plus does a lot of custom harvesting. He leases two John Deere combines. It works for him that way, but he admits there's now way he could afford to own two $150,000 to $200,000 combines and come out ahead.

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