Rydero
Well-known member
That's would definitely make equipment costs consistent and predictable, I think some folks could definitely benefit but it's not for me. My farm (and I suspect many others) was built on a few good equipment purchases. When you get a tractor paid off and it remains reliable, productive and cheap to repair for years and years that's thousands and thousands saved. On my farm we run 3 tractors and total repair costs for the year (no labor) were under $6000 last year. 2 of the 3 are paid off and can be walked away from if something expensive happens.Equipment costs and repairs must be managed $effectively or kiss production and a profit goodbye
I buy tractors w under 250 hours and swap out with under 1200 hours.
I budget 4k p/yr per 125 hp @pto p tractors and baler. With this expense minus depreciation is 3k per year and just standard oil changes, filters...
I have to shop a lot which is the downside and I swap out every 3 or 4 years
My perspective on equipment is that it's far more likely to see repairs as a result of design flaws and weaknesses than age and other causes. Basically if you start with something good, if it's well cared for and not houred into oblivion it remains more reliable over it's entire life. You can pretty easily find out the expected lifespan and common problems of older, popular brands and models of tractors. There comes a point where it gets senseless to continue with something but some tractors that's 5000 hrs, some 10000 and some 20000 and beyond...