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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