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Collector value vs. practical use value

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Indydirtfarmer

09-19-2003 04:01:53




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I was looking at a new John Deere 8520T yesterday, at the Deere dealership near home. It is a very impressive rig. GPS, and a host of "computer" gadgetry. A cab that's nicer than my pick-up. And a price tag that reminds me of what I paid for my entire farm. Then I went inside, and ran into an old highschool buddy. He is "restoring" a 1966 4020, that he inherited from his dad. He couldn't believe the parts prices, or the "book value" of the old 4020. The parts man was trying to explain to him that this is a tractor that falls into both the "vintage" and the "still in use on the farm" catagories. It seemed to be a very abstract concept to someone that hasn't been involved in farming for 20 years. Now you might think that you can see where I'm going with this, but my question is, do you think that with the tractor makers concentrating on big, high horsepower, high dollar tractors, and seemingly forgeting about the small tractor market, will tractors that are being restored today, be more in demand in the future, as "working" tractors? The ones made in the late 70's and early 80's seem to me to be the "last good small and medium sized tractors" Will the value continue to climb? Or is there a limit to what they are worth? I wouldn't trade the ones I have, for new ones the same size. I can still work on the ones I have now. That wouldn't be the case with something like that 8520T I was referring to earlier. What do you guys think?

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Bob D. (La)

09-20-2003 17:24:53




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 Re: Collector value vs. practical use value in reply to Indydirtfarmer, 09-19-2003 04:01:53  
Hi Indy, I was born and raised on a farm in Indiana. Joined Air Force when I gaduated high school. Never got back to the farm,any farm. Now living in Louisiana and working in chemical industry. I have 2 acres with a 30'x40' barn out back. I now own 5 Allis Chalmers tractors (B,C,CA,WC,and a D17D. Only the B was running when I bought it, but not very well. I buy old junkers, not running for $400.00 give or take. Most of these tractors are headed for the junk yard and I don't want them to loose their life that way. Don't need a tractor, don't actually restore them,paint etc.(at least not yet)but do get them running and play with them. I don't need a tractor, but I get more enjoyment out of hauling home a pile of junk, and after a period of time get running them again. My children are grown so don't share my interest, but my youngest grandson loves them as much as I do. He helped me today as I was putting the C back together,rings bearings, etc.(engine froze when I bought it.)I think a lot of people out there are just like me. We are remembering the old times and how much enjoyment and pure pleasure we got from farming when we were kids. Don't know that this answeres you question, but it's why I own tractors. PS.Still praying for your wife. Hope she's getting better.Bob D. (La)

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Steve450

09-20-2003 09:56:37




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 Re: Collector value vs. practical use value in reply to Indydirtfarmer, 09-19-2003 04:01:53  
As far as new electronics go, I work in a stone quarry where production is everything. We have the newest and best that Cat has to offer. 988G, 980G loaders 773D offroad trucks etc...My point is that all these machines have very complex electronics and "creature comforts"that allow the operator to work faster and be more comfortable on a 12+ hour shift. (A tired operator is a slow operator). Granted, when something breaks we call the cat man to come fix it but the production we gain while they are running pays for it. If I were farming 10,000 acers I think I would want that kind of production also. Here in central pa where 100 acers is a real farm, I see alot of 4020's still doing the hard work. My$.02

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Brian in MO

09-20-2003 07:46:11




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 Re: Collector value vs. practical use value in reply to Indydirtfarmer, 09-19-2003 04:01:53  
After reading through all these posts it made me start thinking... Right now in our area it seems cattle are making more income on farms than any crop (notice I said income not to be confused with profit) I think big farmers 10,000 acres and more are always going to keep some demand for new and high hp tractors. However most of the average farmers are keeping their 20-30 yr old tractors and keeping them in very good shape and it's hard to spend $50,000 on a tractor when the $5,000 tractor in the shed will still do what you need done. You don't see very many of the 60-100 hp tractors sitting on dealers lots because new ones are too exspensive and used ones are still being used. A example of this is about a year ago I had a farmall 560 desiel I traded for a 1256 the dealer had been sitting on the 1256 for almost a year(too big and too old) my 560 was in excellent shape (new motor, paint, tires, etc.) I traded for $2000 difference. One week later the 560 was gone from the dealer (just a more usable size tractor). So all this being said I don't think old tractors can be restored cost effectively enough to be practicle to use as main tractors, however I think the ones we have that are maintained very well will serve our needs alot better than one that is full of plastic and comes with a payment book at least for the "chore" size traoctor. Brian

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gatractorman

09-20-2003 03:54:34




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 Re: Collector value vs. practical use value in reply to Indydirtfarmer, 09-19-2003 04:01:53  
A guy I do alot of work for has one of these late model New Holland Odessey(sp)? tractors, and he is afraid to use it, he bought it to replace an aging TW-10, while the TW still does the brunt of the work the NH sits in the shed with some sort of electrical problem, I cant work on it, I wont even attempt to work on it, so yes I can see the value of the older iron going up, was the same deal at the Bobcat dealership I used to work at I would safely say that 80% of the less than 3 year old Bobcats that came back to the shop was for an electrical problem, all those gadgets are nice when they work but I will opt for reliability over convenience every time.

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DRL

09-19-2003 21:52:57




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 Re: Collector value vs. practical use value in reply to Indydirtfarmer, 09-19-2003 04:01:53  
Sort of on the same topic, I was wondering how the other tractor manufacturers are pricing their parts for the older tractors. I own 4 John Deeres. 2 B's, an unstyled A, and an H. I got my first one a couple of years ago. Within the two years, prices of a lot of the parts for these older tractor have gone up quite substantially. Don't know if prices for the newer stuff has went up at the same pace, as I only have the old two lungers. Seems like Deere may be trying to make keeping these older tractors running too expensive to be feasable for everyday use. Old tractors too expensive to repair, better to buy new. Is this the trend on the old Farmall, Allis, Ford, etc. parts? Just my observation, I may be looking at it from a totally wrong angle.

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RJ-AZ

09-19-2003 19:50:03




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 Re: Collector value vs. practical use value in reply to Indydirtfarmer, 09-19-2003 04:01:53  
The new JD I saw has a beverage can cooler in the the a/c duct to cool your drink for you. Whatever happened to your wife bringing out a jug of ice tea and fresh homade cookies and meeting you on the end of the field on a hot afternoon???



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Indydirtfarmer

09-22-2003 02:35:31




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 Re: Re: Collector value vs. practical use value in reply to RJ-AZ, 09-19-2003 19:50:03  
The wife is busy working 2 jobs, so that bills get paid.



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JOHN (LA)

09-20-2003 04:10:18




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 Re: Re: Collector value vs. practical use value in reply to RJ-AZ, 09-19-2003 19:50:03  
She is working two jobs in town to help you pay for that new tractor. HAHAHA



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RJ-AZ

09-20-2003 05:55:23




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 Re: Re: Re: Collector value vs. practical use valu in reply to JOHN (LA), 09-20-2003 04:10:18  
You got that right. I figured somebody would catch on.



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Kajun

09-19-2003 09:47:51




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 Re: Collector value vs. practical use value in reply to Indydirtfarmer, 09-19-2003 04:01:53  
Guys:

One of the most intelligent interchanges I have seen here in a long time.


Kajun



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KURT (mi)

09-19-2003 09:16:13




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 Re: Collector value vs. practical use value in reply to Indydirtfarmer, 09-19-2003 04:01:53  
Earlier this year I was really thinking about buying a new TC24 New Holland tractor. But the $12K price tag made me think. Hmmm... What am I going to be using this for, snow removal, landscape, taking the garbage cans to the road. So I didnt buy it because of the cost and bought a Polaris 4 wheeler instead, for $6K I chose this because of my own needs. Got a blade with it, and it pulls 1000 pounds. The new tractors are really nice but you have to have a lot of property to be able to justify the cost.

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Robert

09-19-2003 07:48:07




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 Re: Collector value vs. practical use value in reply to Indydirtfarmer, 09-19-2003 04:01:53  
My perspective from a "weekend farmer's point of view" is that there will always be a niche in the tractor market for guys like me, who need a working tractor, but can't justify the cost of a new one. As to the question of whether they (older tractors) will increase in value, I think it may be like old pick-ups in my area----they decrease in value to a certain point, and then they hold that value for a long time. Someone mentioned old Ford 8-9Ns---In my part of the world, those old tractors in running condition, will still bring $2,000-3,500 (most will have some type of mower attached).
My .02 worth....

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Joe Evans

09-19-2003 07:20:19




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 Re: Collector value vs. practical use value in reply to Indydirtfarmer, 09-19-2003 04:01:53  
I would answer your question by saying 'yes' and 'no'. How's that for a commitment? Seriously, I would say that older, sound tractors will be in demand for a long time for what I call second-level work around a farm--pulling wagons, raking, running elevators, hauling poop, etc. And I would say that the demand will increase.

I don't think, though, that good restored tractors will be in demand for the front-line work. I would not risk depending on 30 yr old tractor to get 1000 acres of beans in.

I would spend big money on the machine that I absolutely have to have available, then buy some good, older tractors for support work. Why spend $30,000 for something that might see 500 hrs of work per year when you can get something that will do those jobs for, say $7,000? At that rate, you could afford multiple support tractors in case one of them is down for repairs. Multiple older tractors of mid-range size doing less demanding, second-level (utility) work will have there useful lives prolonged.

The neighbor has a 1965 Farmall 806. It's a little rough, but he just put $5,000 in it going through the drive train, hydraulics, and brakes. The motor is sound. What would it cost to replace a big hoss like the 806 (the 806 is a hoss in my world of M's, 460's, and 400's) with something new of that size? That 806 will very likely go another 20 years with the use that it sees. Throwing out the criterion of some possible creature comforts, what will something new in the 100HP range do that the 806 cannot do?

Another neighbor who farms my mother's property does the "heavy-lifting" with his relatively new JD, and then drills beans in with an old Oliver 77 and a steel-wheeled Oliver drill. I can't count the times I've gone past a farm and see big 4WD units doing the tilling. Then when I drive past that farm's barn area, I'll see two or three old "beaters". Usually they're Farmall 300's or Super M's with loaders and crap slung all over them. No, they don't have cabs, heaters, stereos, or GPS units, but they're still earning their keep, don't eat much, and will likely do so with no problem for years to come. (Although I have seen guys operate loaders where a GPS system would help them find the center of a manure spreader).

No, restored units won't be in demand for front-line duty, but I see more demand for restored units for utility work.

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JOHN (LA)

09-19-2003 07:10:06




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 Re: Collector value vs. practical use value in reply to Indydirtfarmer, 09-19-2003 04:01:53  
I thing I would have to sort a agree with you. The full size tractor dealers have been building bigger and better every year. They have left the homeowner out sized and out priced trying to keep pace with the very large farms of today. This has opened a market for the large lawn mower makers. (IE: Kubota) Will the price on full size keep going up? That is hard to say. As long as people are willing to buy a Kubota (I am not: makes me feel like I am on a pony instead of a horse.) and as long as people like you and me keep pulling 8N”s out of some mud hole where it has been for 30 years the price may stay in check. We are creating an ever-increasing amount of refurbished machines and Kubota is taking the demand away. I also think that Kubota will not let the price of full size go through the roof. If they see where the demand is there at a high price range they will start building full size. QUESTION: WHY DOES A TRACTOR NEED GPS????? ???
Has the farms got that big you need it to find your house? Ha Ha!!!!! !!!!!

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Joel Harman

09-19-2003 07:38:41




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 Re: Re: Collector value vs. practical use value in reply to JOHN (LA), 09-19-2003 07:10:06  
GPS has been instrumental in reducing fertilizer & pesticide use & tracking yields for farmers. There are those among us that still use lots of chemicals. They would not produce a crop without these inputs so must use them wisely.

Doesn't mean I agree with them but that is the reference point so must go from there.



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JW

09-19-2003 11:09:42




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 Re: Re: Re: Collector value vs. practical use valu in reply to Joel Harman, 09-19-2003 07:38:41  
And don't forget that the WIFE can use it to keep up with your wherabouts.



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Aaron

09-19-2003 06:03:01




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 Re: Collector value vs. practical use value in reply to Indydirtfarmer, 09-19-2003 04:01:53  
I know exactly what you're talking about, but to me the value doesn't really matter. I buy, restore, and use tractors I enjoy operating. I have over twenty tractors that are all in running condition and are used to farm with. The oldest I have is a 1939 DC Case, and the newest is a 1971 John Deere 4020D. When I buy a tractor, I bring it home and run it about a year to figure out any mechanical needs it has. I then fix them and give the tractor a fresh coat of paint and decals, then to work it goes. I do take special care to not scratch them up, etc. I have people stop quite often while I'm working in the field and ask if they can watch, listen to, and take pictures of the tractor as it works. To me that is where the value of my old tractors is.

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Trevor

09-19-2003 05:31:22




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 Re: Collector value vs. practical use value in reply to Indydirtfarmer, 09-19-2003 04:01:53  
I some what disagree with your statement that manufacturers are not making good quality small tractors.

The trends have definitely changed from the 70s but there are still good quality small tractors. For one thing the compact market is higher quality and has many more models than ever before. The compacts of today can boast Hp equal to that of fulsized tractors of yesterday. Also the small full size market is still there however they are focused on being loader tractors due to the fact that that is how they are used.

If you look at all manufacturers including imports (i.e. Kubota) the small tractors of today are more powerfull, better handling and more comfortable then ever.

Of course the question remains whether Plastic will last and be collectable, but this goes for tractors, trucks and cars alike.

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Indydirtfarmer

09-19-2003 06:09:44




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 Re: Re: Collector value vs. practical use value in reply to Trevor, 09-19-2003 05:31:22  
Sure the new stuff has plenty of power. It has all the modern conveniences of the day. What I'm talking about,is 10 years down the road, when all the electronic gear shifters and the like start to go bad. Who in the world can work on stuff like that, at a price that farmers can afford. I rented a "new" tractor, last spring. They're great when they're new. What isn't? But I have to keep, and use my purchases for years. My "primary" tractors are 22 and 25 years old. I farm about 1500 acres. That's not the Southfork by any stretch, but it's not small-time either.I am "typical" of todays farmer. Using older stuff is the only way most of us can keep our overhead down to a level that allows us to eat, and clothe our families. I have a combine that is 3 years old. I wish that I'd kept my 20 year old one that was traded in last year. I had to make repairs on it, but the "new one" has to be repaired and maintained also. The cost of the newer one is mind-boggling, compaired to the older one. Yes it will do more in a day, but the bottom line is suffering in a major way. The new equipment is great if you farm 10,000 acres, and have a full time mechanic at your farm. I don't. (Well, maybe I do...ME) My point is not about the first time you unload a tractor, from the dealers truck, and head out into the field. It's about the long haul. My 25 year old 4440 will do anything that a new 130 hp tractor will do. Maybe it won't do it with the push of a button, but it won't cost me $90,000 either. As far as I'm concerned, "getting the job done" means doing the task at hand, within the budget I have to work with. If something is way too expensive to fit into the big picture, well, it just doesn't work, no matter how modern it is.

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Joe Evans

09-19-2003 07:31:12




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 Re: Re: Re: Collector value vs. practical use valu in reply to Indydirtfarmer, 09-19-2003 06:09:44  
Indydirtfarmer: I said the same thing above. I think you did a better job of saying it. Well done.



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JOHN (LA)

09-19-2003 07:29:04




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 Re: Re: Re: Collector value vs. practical use valu in reply to Indydirtfarmer, 09-19-2003 06:09:44  
I guess I missed your point also Indy. I thought you were talking about home owner tractors.
What you are debating is a sign of the times. A 100 cow dairy farm to a 2000 cow farm. A 1500 acre corn field to a 10,000 acre field. A corner hardware to the big orange building. Yes the only way for the little guy can survive is fix the old. But what will he do when repairing has gotten out of hand. I have been there and seen my dad fight to keep his dairy going. I could not run away fast enough when it came my turn because of what you are saying now.I hope your children fare better and can keep the family farm alive.

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Trevor

09-19-2003 06:47:59




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 Re: Re: Re: Collector value vs. practical use valu in reply to Indydirtfarmer, 09-19-2003 06:09:44  
I think we might be dancing around to the same tune but at a differnt pace.

You have to realise that 20 years ago some people said the very same thing you are saying today about the new tractors then. But the one thing that has changed is the price. The prices 20 years ago allowed people to trade in good quality older equipment and afford a new tractor or what ever. Now however the new tractors cost so much that people aren't trading in the old tractor they are fixing them and using them. The nuimber of new tractors being sold has to be but a fraction of what was sold in the 60s and 70s.

So in 20 years from today I think that tractors will be scarce and even old (our now 20 year old)tractors will be worth allot of money because there aren't the number being produced today.

As far as the maintenance thing goes, I tend to think that the electronic tractors of today will still be around. The maintenance costs will drop as more and more younge people learn how to work with and repair electronically controled equipment. There are many examples of this already in our society such as the PC that I am using right now.

One other thing to consider is, like you said, tractors of today don't really do anything that 70s tractors can't do. They just do it bigger, or quicker, or more efficiently or more comfortably. The hydraulicas and so on has changed very little.

So, I agree with you that tractor prices will only go up in the future however I disagree that the tractors of today will not last.

The only thing that could change this would be if the manufacturers somehow drop their prices and people start buying new tractors again. Of course there are allot less farmers now than there was in the 70s.

How's that? Can we agree to disagree? LOL

Always like your posts Indydirtfarmer. Good to debate with you.

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Indydirtfarmer

09-19-2003 10:55:17




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 Re: Re: Re: Re: Collector value vs. practical use in reply to Trevor, 09-19-2003 06:47:59  
Thanks Trevor. Some of the things I put on here, are for the sake of arguement. I have my opinions, like everyone. But sometimes I like to play "Devils advocate" to see what everyone else has to say. Lots of times, you just can't get a response, if you say the "popular thing". I have found that getting a "series" of contrasting viewpoints, is the best way to learn about a subject. My dad always told me, "When you think you know it all, you know all you're ever going to know". For whatever it's worth, this board seems to have more people that acknowledge their fathers for what they taught them, than any other group of people I have ever met. And that's a GOOD THING!

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Trevor

09-19-2003 11:58:55




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 Re: Re: Re: Re: Re: Collector value vs. practical in reply to Indydirtfarmer, 09-19-2003 10:55:17  
I do the same thing sometimes (some people can't take a joke though).

I recently started one on the Paint board bout isocyanates and thought someone would climb all over it but they just answered politely (nice surprise). This is probably one of the best sources for info on the net. People from all different walks of life post on these boards.

I always enjoy reading your posts and you start interesting conversations (like this one). I was play devil's advocate during this conversation. why would I be here if I didn't like old tractors?

Talk to (argue with) ya later. hahaha

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Indydirtfarmer

09-19-2003 08:38:42




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 Re: Re: Re: Re: Collector value vs. practical use in reply to Trevor, 09-19-2003 06:47:59  
Everyone see's things from a different perspective. I have to look at what is best for me. You see what is best for you. The "collective thoughts" of all of us, make for an "average". The "average" person, buying a new tractor, has to justify the cost. (Excluding the doctors/lawyers/lotto winners that can afford what they WANT) There are but a few full-time farmers today that can go out and buy new. Those guys are generally buying the 200+ HP 4wd, and so on. Some of these same farmers are buying "small" and "mid-sized tractors" for utility use. A 450 HP 4WD doesn't do very well with a hay rake. That leaves the rest of us, struggling to get by with our "old" tractors. Those older tractors are still very capable of putting out a crop, on some fairly large acrage. I live in an area where no-till is the rule, rather than the exception. Just a guess on my part, but about 90% of the soybeans, and 75% of the corn is no-till. I know of less than a dozen farmers in our county that have a "primary" tractor that is less than 5 years old. I see the newer small tractors as just too outragously expensive for anyone to buy for farming. They ARE nice. They MAY last. They will get the job done. I can't see me buying one. If someone has the urge to buy one, more power to them. BUT...my point is that the numbers are WAY DOWN, as far as what the major manufacturers are producing. With a percentage of them being "just too expensive to repair" when they start having troubles, in the future, the 20 year old tractors of today, will be a lot less expensive to rebuild. I just see the tractors of the late 70's, the 80's and even the early 90's as a much better investment. I won't argue with anyone elses reason for buying whatever they see fit. I guess that I'm just making my case for farming with old junk!

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jim

09-19-2003 06:43:21




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 Re: Re: Re: Collector value vs. practical use valu in reply to Indydirtfarmer, 09-19-2003 06:09:44  
I'm with you all the way. My newest, 32 yr. old tractor(Ford 5000, 9000 hrs.)needed a head gasket this year - first money spent on the engine ! My 30 yr. old NH 479 haybine finally broke the reel-drive belt - replaced the sickle drive belt 10 yrs. ago ! Replaced one bearing in my 25 yr. old JD 3300 combine last year. At this rate of repair,these machines will be 100 yrs. old before I'll have to think about trading and by that time, they'll be collectable and my grandkids will make a fortune selling them -- that is if they're not still usung them.

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RJ-AZ

09-19-2003 05:12:32




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 Re: Collector value vs. practical use value in reply to Indydirtfarmer, 09-19-2003 04:01:53  
I was a kid in the 60's farming with my dad and he went to the back row of the tractor lot to look at tractors. We progressed thru a DC Case, D John Deere, MH44 diesel, IH MTA diesel etc. The first new tractor was a 3000 Ford in 72'. He is 87 now and still farming.Here in southern Az there seems to be a trend for newer bigger and better. Also a lot of farmers are going under. I know one guy running late 70's JD tractors (4420's & 4440's) and doing well. I did an overhaul on an early 4020 for a school teacher freind of mine and he squalled whenever we had to buy a deere specific part. We got a lot of the stuff from aftermarket suppliers a lot cheaper. Found a used crankshaft at a tractor salvage place but even it was not cheap.

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Don

09-20-2003 22:54:16




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 Re: Re: Collector value vs. practical use value in reply to RJ-AZ, 09-19-2003 05:12:32  
You boys could afford those big new expensive tractors if the price of your products would have kept pace with the manufacturing firms products. The farmers have always been beat over the head and it will continue to be that way until the farmer does something about it. In todays world, the nice guys finish last.



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