Combine and tractor replacement policy

[SilliamWhale]

Do you mean in ten years time or from what I paid for it .

10 years

 

[DRC]

10 years

Interesting thought , but not sure I agree

 

[T Hectares]

Looking at second hand combines there seems to be a whole lot more rotary combines about, especially large ones.

Ah, see what you mean
Yes, I have run rotaries in the past but I inherited a Walker machine here and it was noticeable how the cost of ownership was less, it had plenty of output for the area I cut so I bought another one !!

 

[Hjwise]

It’s largely an emotional decision based on dependency and confidence in a given machine. You know when you know....

 

[RmfJ]

10 years

But the new one would be a huge lot more again!

 

[Against_the_grain]

Whilst I agree with all the posts about buying a machine and keeping it for 10years, the problem becomes the cost to change. We are reluctant to keep machines too long because its incredible how quickly they become out of reach.
Rightly or wrongly we changed our mainline 300hptractor this year. 3 years old 2500hours absolute beauty nothing at all wrong with it BUT the cost to change like for like was £80k!! That gap is growing every year and if we don't change now it will be £100/k+ in 2 years. Same with combine. Reluctant to change but if we don't within a year or two we will be unachievable. Its the treadmill of machinery. If you get off it its incredibly difficult to get back on.

 

[czechmate]

Another blue one .

Did you not get to gel with the TTV?
I got past the awkward stage and really like it now. Mind, for me it helps the dealer just being a couple of miles away, alternative brands all being a lot further

 

[teslacoils]

Sell the roller, splash out on a few lovely holidays - I'm thinking Maldives water bungalow - ; get a much more reasonably priced roller, albeit smaller, and spend EVEN LONGER doing your most FAVOURITE job.

I'm no financial advisor but I'm pretty sure that would be a good plan.
You cannot lose man

Or........rolling contractor job.

 

[czechmate]

Or........rolling contractor job.

Roll on up through the USA

 

[Farmer Fin]

Whilst I agree with all the posts about buying a machine and keeping it for 10years, the problem becomes the cost to change. We are reluctant to keep machines too long because its incredible how quickly they become out of reach.
Rightly or wrongly we changed our mainline 300hptractor this year. 3 years old 2500hours absolute beauty nothing at all wrong with it BUT the cost to change like for like was £80k!! That gap is growing every year and if we don't change now it will be £100/k+ in 2 years. Same with combine. Reluctant to change but if we don't within a year or two we will be unachievable. Its the treadmill of machinery. If you get off it its incredibly difficult to get back on.

But surely is psychological. Changing a machine every 9 years vs every 3 is not going to cost you any more over the 9 year period. Ok tax efficiency may come into it but not always.

 

[DRC]

Did you not get to gel with the TTV?
I got past the awkward stage and really like it now. Mind, for me it helps the dealer just being a couple of miles away, alternative brands all being a lot further

I’ve still got the Deutz as my smaller tractor . They just couldn’t come anywhere near the deal to change the bigger one, blue for blue.

 

[T Hectares]

But surely is psychological. Changing a machine every 9 years vs every 3 is not going to cost you any more over the 9 year period. Ok tax efficiency may come into it but not always.

Absolutely, and my old 10 year old combines depreciation flattened out over the last 3 years, it was as cost effective and reliable as it was in the previous 7
I think there is a fear of perceived unreliability that leads to the hamster wheel, when in reality that’s not always the case, for instance an NH CVT gearbox in 200hp + T7 is more reliable than the powercommands were because they were at the top end of their capability

 

[Daniel]

'Replacement policy'

We're a mixed family farm, there is no policy.

Gut feel, a dealer offering a good deal, and the state of the treasury all combine in a magical alchemy.

Last year we bought nothing, I suspect it will be the same this year.

 

[average farmer]

If farmers don’t replace some machines reguLarry there will come a time when you end up with a yard full of worn out knackered machinery.i know of a contractor already experiencing this scenario and I expect there are plenty of others.
nick...

Yes, but you might have enough money in the bank to replace all the lot. My three most used machines are all over 10 000 hours and I know one will let me down soon or cost a few £ but atm are still going well and getting good value for money out of them.
If something is costing more in repairs than a newer one would in depreciation or not getting the work done on time it will be changed. If not I’ll keep it and the money in the bank .

 

[SilliamWhale]

But the new one would be a huge lot more again!

Yes.

But that's where the traders make the money.

 

[AndrewB]

Try to buy good second hand tractors at less than 2500 hrs and run them to 12-15000 hrs, normally at this stage they go for export. Main tractors are 2012, 15,16 and 18. Spare tractor is a 10000 hr 2010 which is probably going up in value ( JD7530).
Would rather buy bigger capacity 2nd hand machines than new.
Combines, self propelled sprayer and sp potato harvester all bought second hand and run until reliability issues.
It amazes me that some farmers think as soon as any machine is out of warranty it will blow up and cost a fortune, hope it continues so we can buy decent 2nd hand machines.

 

[Serup]

I run everything untill running costs has been more than capital cost and scheduled dealer service of new asset, two years in a row. It usually means running it in the ground. It’s surprising how much maintenance i can do for less than depreciation and interest on new. I know some will say “what about reliability”, but in a pinch i rent a tractor or machine untill we are running again. I have two old tractors that fit all implements, row crops, duals and all screens ect, so we can swap in a few hours and use any tractor for other jobs.

 

[Against_the_grain]

But surely is psychological. Changing a machine every 9 years vs every 3 is not going to cost you any more over the 9 year period. Ok tax efficiency may come into it but not always.

Perhaps but if I don't change my combine for 10years I'm not sure I will be able to change it again for a new one. Cost to change in 2026 would likely be £250,000+ atbthe current rate. Then I would need to get a loan out over 10 years and probably cost me the same per year as it would of done if I had changed at 5 years

 

[Farmer Fin]

Perhaps but if I don't change my combine for 10years I'm not sure I will be able to change it again for a new one. Cost to change in 2026 would likely be £250,000+ atbthe current rate. Then I would need to get a loan out over 10 years and probably cost me the same per year as it would of done if I had changed at 5 years

Sorry I still don’t understand. If you don’t change your combine after 5 years do you lose the money you were going to spend changing it? Are you not allowed to keep that money somewhere for another 5 years or use that money to make more money as opposed to depreciating in an asset?

 

[Against_the_grain]

If your going to put that money to the side or save it at 1%at best you might as well buy the machine. If your going to invest it all well and good but the investment needs to be liquid enough that you can pull that cash out in 5 years. Some of that cash will be eaten up by repairs as well. Probably need to aim for near 10% return to make it worth while.