paying off equipment

Just got the recent issue of Fastline. How many acres does someone have to operate in order to pay off those $100,000-$200,000 and up pieces of equipment? That's assuming crop prices remain fairly steady and the weather cooperates, both doubtful. Oh, and the ads were for used equipment.

KEH

Most pro folks around here farm 1000 acres per person, hobbyist a couple hundred.

Well the govt. subsidy is structured so the average size farm can make an average living if he has average expenses and pays average price for equip. I believe the average sized farm is around 450 acres. So there is your answer. $100,000-200,000 prices on used equip. I bet is above average so you would need more then 450 acres.

Just got the recent issue of Fastline. How many acres does someone have to operate in order to [b:f3c7165413]pay off [/b:f3c7165413]those $100,000-$200,000 and up pieces of equipment?

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What's this mysterious term you used there...pay...off? Like in having no payments and owning something outright? Yeah, sure. Getting more common around here to lease tractors/combines from the dealer with the best price, run them two years and walk away. Known, set costs, little or no repairs, simple maintenance. Never buy a better again!

Of course, of the four BTOs that I know that do this, one is in jail, one has missed some rent payments from last Fall, and one other one is pulling back this year...

I know people who row crop farm 2000 acres and they don't get in much of a bind doing it these days, irrigate every field, crop insurance and book 90% of their crop every year, takes most of the guess work out of the equation so they know what they can pay. Technology is turning farming into a regular job.

He went to jail for leasing equipment?

(quoted from post at 09:44:21 04/22/17)

Just got the recent issue of Fastline. How many acres does someone have to operate in order to [b:fa443af7f0]pay off [/b:fa443af7f0]those $100,000-$200,000 and up pieces of equipment?

Click to expand...

What's this mysterious term you used there...pay...off? Like in having no payments and owning something outright? Yeah, sure. Getting more common around here to lease tractors/combines from the dealer with the best price, run them two years and walk away. Known, set costs, little or no repairs, simple maintenance. Never buy a better again!

Of course, of the four BTOs that I know that do this, one is in jail, one has missed some rent payments from last Fall, and one other one is pulling back this year...

Click to expand...

arm long enough ,live within your means, don't buy new equipment and eventually you'll own the farm the equipment and livestock outright.
I know,..i did. took about 25 years to get there.

I certainly don't have the newest or the best looking tractors and equipment around but the repo man ain't coming to get any of it either.I figure if I can't buy it outright
I can't afford it.Amazing how counting out the cash will make one realize that maybe they can get the job done with less expensive equipment.

Get rid of the subsidy and yield type insurance. Give only disaster insurance, fire, flood, hail, etc, from your local insurance agency. Too many people count on those subsidies as part of their farm income. I have to work hard for each cent I earn, but I don't get extra given to me if something didn't turn out. The neighbor has all new tractors, gets more from his subsidy than we make without it each year, but at least I feel I'm doing it the way it ought to be. We like to run older stuff, I do ALL of our repairs, amd keep our stuff in good condition with a lot of preventative maintenance. I planted 3 fields last year while watching 2 service trucks work on the neighbor's green tractor all day with the planter behind it in the middle of the field. That happened a couple of times. I'd get real tired of paying that much and having to put up with all that BS.

(quoted from post at 08:57:54 04/22/17)
Just got the recent issue of Fastline. How many acres does someone have to operate in order to pay off those $100,000-$200,000 and up pieces of equipment? That's assuming crop prices remain fairly steady and the weather cooperates, both doubtful. Oh, and the ads were for used equipment.

KEH

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Round here it's the guys cropping 1,000 plus who's buying used tractors and combines that cost over 100K used. Smaller guys just ain't making that kinda money.

Rick