Don’t tell people what you know, KEEP THEM POOR!

[NEFarmwife]

How well does spending 200k+ on new equipment to replace 4 year old equipment, pencil out?

I just asked my 15 year old baler and my pre-historic swather and they both laughed.

 

[greybeard]

if you took all the money from the rich and gave it to the poor, in 10 years the rich would have it all back again".

Not if they did it every satirday nite..

 

[Lazy M]

Quick question for you Mr Branded, how would you need 1200 rolls of hay to feed 50 mama cows and calves. I run about 70 mama's and use 300 ish a year. Mine stay just as fat as yours. My 40 x 80 barn holds em all with ease. 16' lean to's on 3 sides holds all the rest of the equipment.

50 mommas don't need 1200 rolls. I will be over 100 head in the next 12-16 months, and even more than that by 2021. I'm planning ahead, and I'm also looking to sell any excess hay. The people crying the blues this winter failed to be prepared, no other excuse.

The guys in my area that baled as much hay as they could are not having money issues right now, instead they are selling hay at $100 roll. They are pis..sing people off, but getting paid. Capitalism at it's finest. The law of supply and demand playing itself out.

300 rolls, at $100 a roll, which would be easy to obtain right now for a bale, is $30k. That pays for a baler pretty darn fast, and you get high quality, non molded hay for yourself. We have a lot of Amish farmers here and they will pay $100 a roll all day long.

Nothing I hate worse than a POS price gouger.. That's why I've been selling rolls for $65.

 

[JMJ Farms]

I built a hay barn 2 yrs ago and it's been one of my best investments. I went a little overboard so it cost quite a bit but what the heck I like it. The thing I didn't figure on pay back was how much you save on carrying hay over a year. I would say 0% waste on hay stored this year and maybe 5% if that on hay left from last year. I also built a couple sheds off of it for equipment storage and I think they are paying off faster than the barn. JMJ talked about paying cash rather than finance when figuring savings in, I think the material/labor cost is going up more than the interest would be.

A couple things I've learned on the other subject is don't take advice from people who always say "I can't afford to do that" or automatically say "That won't work". Instead look for the guy in the conversation getting his calculator out. When someone gives you advice always look at what's behind them. Anyone can become well off in America, if they really want too.

Lucky, did you go wood or steel? I haven't done any figuring lately on the subject, but I think I can pay someone to erect a steel building cheaper than I can build it out of wood.

 

[Lucky]

I built a hay barn 2 yrs ago and it's been one of my best investments. I went a little overboard so it cost quite a bit but what the heck I like it. The thing I didn't figure on pay back was how much you save on carrying hay over a year. I would say 0% waste on hay stored this year and maybe 5% if that on hay left from last year. I also built a couple sheds off of it for equipment storage and I think they are paying off faster than the barn. JMJ talked about paying cash rather than finance when figuring savings in, I think the material/labor cost is going up more than the interest would be.

A couple things I've learned on the other subject is don't take advice from people who always say "I can't afford to do that" or automatically say "That won't work". Instead look for the guy in the conversation getting his calculator out. When someone gives you advice always look at what's behind them. Anyone can become well off in America, if they really want too.

Lucky, did you go wood or steel? I haven't done any figuring lately on the subject, but I think I can pay someone to erect a steel building cheaper than I can build it out of wood.

I went with steel. It's a 60 x 60 main barn enclosed on 3 sides. 2 sides have sheds that tie into each other on a corner. Gave me a 20x80 and a 20x60 shed for equipment. Gave me something like 6,200 sqf under roof. Cost me around $6 a foot. Only tool I used was a pen

 

[CattleMan1920]

How well does spending 200k+ on new equipment to replace 4 year old equipment, pencil out?

With section 179, quite well, at least according to the CPA.

Also about as well as a new hay building will pencil out.

My question for you. How well does buying $80-100 hay pencil out? Or selling cattle because you can't feed them. If you are expanding, and equipment helps you do that, what's the issue?

People buy frivolous things all the time, new shiny trucks being one of them. Add in $10k or more in rims and tires and lift kit. For what, that setup rarely makes you money?

I drive an old rusted out Ford and my barns look like crap. Nothing fancy on my farm. I do however believe in the best equipment I can afford.

 

[TennesseeTuxedo]

I pay $20-$25 a roll for 4x5s

 

[CattleMan1920]

Nothing I hate worse than a POS price gouger.. That's why I've been selling rolls for $65.

How kind of you! If I had hay to sell I would price it as high as it would sell for, if that was $125 a roll, so be it. I definitely would not worry that others didn't plan properly. That's not my concern.

 

[TennesseeTuxedo]

Nothing I hate worse than a POS price gouger.. That's why I've been selling rolls for $65.

How kind of you! If I had hay to sell I would price it as high as it would sell for, if that was $125 a roll, so be it. I definitely would not worry that others didn't plan properly. That's not my concern.

Now how is that good customer relations Mr. Branded? Don't you realize people have long memories?

 

[TennesseeTuxedo]

Darn quote thing is messing up again.

 

[Jogeephus]

I pay $20-$25 a roll for 4x5s

How are you going to make money in cattle if you don't invest in feed, high quality cattle and the most expensive semen or bulls you can finance? Haven't you learned anything from this thread? Feeding $20-25 dollar hay! You got to be kidding me. I wouldn't be surprised if the humane society isn't at your door tomorrow morning.

 

[CattleMan1920]

How well does spending 200k+ on new equipment to replace 4 year old equipment, pencil out?

I just asked my 15 year old baler and my pre-historic swather and they both laughed.

Nothing wrong with that. In fact nothing wrong with putting hay up like this if it works for you.

https://youtu.be/XGzUL9tRelc

 

[jehosofat]

How kind of you! If I had hay to sell I would price it as high as it would sell for, if that was $125 a roll, so be it. I definitely would not worry that others didn't plan properly. That's not my concern.

Now how is that good customer relations Mr. Branded? Don't you realize people have long memories?

That's how you're in business since 1967, have a 50 head operation, and no hay barn.

 

[ALACOWMAN]

How kind of you! If I had hay to sell I would price it as high as it would sell for, if that was $125 a roll, so be it. I definitely would not worry that others didn't plan properly. That's not my concern.

Now how is that good customer relations Mr. Branded? Don't you realize people have long memories?

Thats for sure.all those you step on making your way too the top..will remember you on the way back down..

 

[CattleMan1920]

I pay $20-$25 a roll for 4x5s

How are you going to make money in cattle if you don't invest in feed, high quality cattle and the most expensive semen or bulls you can finance? Haven't you learned anything from this thread? Feeding $20-25 dollar hay! You got to be kidding me. I wouldn't be surprised if the humane society isn't at your door tomorrow morning.

Different strokes for different folks.

Like I said before, a guy near my farm, who I went to high school with, told me "you make money in the cattle business by feeding them as little as possible, to the point of starving them and seeing who survives,and sell their calves"

When I look at his business model and results, I will respectfully choose to pursue other methods to a successful operation. However, with that said, I wished him good luck, didn't offer any advice, and moved along. Only time will tell if his strategy is a winner.

 

[jehosofat]

I pay $20-$25 a roll for 4x5s

How are you going to make money in cattle if you don't invest in feed, high quality cattle and the most expensive semen or bulls you can finance? Haven't you learned anything from this thread? Feeding $20-25 dollar hay! You got to be kidding me. I wouldn't be surprised if the humane society isn't at your door tomorrow morning.

Different strokes for different folks.

Like I said before, a guy near my farm, who I went to high school with, told me "you make money in the cattle business by feeding them as little as possible, to the point of starving them and seeing who survives,and sell their calves"

When I look at his business model and results, I will respectfully choose to pursue other methods to a successful operation. However, with that said, I wished him good luck, didn't offer any advice, and moved along. Only time will tell if his strategy is a winner.

A 100K tractor, 40K baler, 20K mower, 10K rake, and a 30K baleage machine with 50 cows, don't pencil out either.

 

[sim.-ang.king]

How well does spending 200k+ on new equipment to replace 4 year old equipment, pencil out?

With section 179, quite well, at least according to the CPA.

Also about as well as a new hay building will pencil out.

My question for you. How well does buying $80-100 hay pencil out? Or selling cattle because you can't feed them. If you are expanding, and equipment helps you do that, what's the issue?

People buy frivolous things all the time, new shiny trucks being one of them. Add in $10k or more in rims and tires and lift kit. For what, that setup rarely makes you money?

I drive an old rusted out Ford and my barns look like crap. Nothing fancy on my farm. I do however believe in the best equipment I can afford.

Wouldn't know about $100 hay, never bought any.
$200,000 over 5 years is 40,000 a year.
1000 bales a year is $40 a bale in just equipment cost. Plus growing the hay, maintaining equipment, moving the hay, and so on.

I think I would stick with the 4 year old equipment that's paid for.

 

[CattleMan1920]

Now how is that good customer relations Mr. Branded? Don't you realize people have long memories?

Thats for sure.all those you step on making your way too the top..will remember you on the way back down..

That's all fine and dandy, but at the end of the day, Nobody I deal with, or have ever dealt with has sold at a below market price because they wanted to help me out. That's not reality. I won't sell a bull for $1k just because someone thinks I should, nor would most producers. It's not being mean, it's having some business sense.

The people that are getting mad at the hay sellers didn't have enough hay, that's not the fault of those that put up excess hay, and worked their butts off to do it.

I need a new truck, I'm willing to trade my 2002 F250 for a new 2019 F450 King Ranch, even, no cash. If there are any Ford dealers watching this, please do the kindly good deed of giving me a new truck to help a feller out.

I'm just making a point that getting mad at someone profiting from a situation like hay right now is not in line with a capitalist mindset.

Our President jacked up prices for rooms and membership dues at his golf resorts when he took office. Why? Because he could. I don't blame him, I would have done the same. Those properties don't run on good will and handouts.

 

[CattleMan1920]

How well does spending 200k+ on new equipment to replace 4 year old equipment, pencil out?

You are missing the tax benefits. The only R series tractors that I see selling around here are to folks that use them as a major deduction against income.

 

[Dave]

That hay barn investment depends on where you live. Where i lived on the coast the average rainfall was over 10 inches a month for both December and January. The hay was either in a barn or under a tarp. Nobody stored hay out in the weather. And for that matter the cows had feeders under a roof and they walk on concrete. On the other hand where I live now there are 1,700-1,800 cows between here and the post office (4.5 miles) and not a single bale under cover. But the annual rainfall is only about 10 inches.