Combine depreciation

[Bossfarmer]

I see many many farmers cutting only around 500 acres of cereals and running a split new combine, shifting them every few years, how much are these combines loosing on depreciation? Say a mid sized class or nh 20-25ft straw walker combine will it be around 200k new and get 150k for it after 5 years? Am i far out at that, just trying to get my head around it!

 

[RAF]

Keep um new . Never actually pay for them just keep going .

 

[Devil's advocate]

Without going into prices or area.

In 2013 we had a 40% tax bill & a 34 year old combine falling apart. We took the attitude that farming/land ownership payed running a combine did not, but that a decent combine made harvest more reliable.

So we bit the bullet & bought a new one, financial madness, certainly but no one starved, dare not cost how mad it was, but no regrets. Apart from the odd shower always kept inside, never washed (blown with airline) maintained to best of ability & hope it will last 30 years.

 

[average farmer]

I have no idea what a new one is, 35 k was the most we've spent on a combine until 5 years ago when we bought a 11 plate C670i JD . cost 90 k probably still worth 60-70 cutting near 1000 acres/year.

Have found that having a good combine makes harvest soo much easier , its like starting on the right foot .

 

[T Hectares]

What does it matter what other people get up to??
How do you know those Combines are owned and not hired??

I've always worked along the lines of what would a contractor cost to cut my crops, can I run a combine for that or less??
So 500 acres @ £32/acre gives a budget of £16k/yr to work to

 

[deleted user 837354]

What does it matter what other people get up to??
How do you know those Combines are owned and not hired??

I've always worked along the lines of what would a contractor cost to cut my crops, can I run a combine for that or less??
So 500 acres @ £32/acre gives a budget of £16k/yr to work to

Agreed. So using your and Devil's advocate's example, cutting 1000 acre per year would give him a theoretical budget of £160,000 to spend if it was kept for at least 5 years. He spent considerably less than that and intends to keep it longer so in all reality it is probably going to be cheap combining.

Even if you paid several thousand quid for the thing to be dealer maintained out of season and had a few grands worth of spares in the workshop sat ready you can't be far wrong.

 

[average farmer]

Agreed. So using your and Devil's advocate's example, cutting 1000 acre per year would give him a theoretical budget of £160,000 to spend if it was kept for at least 5 years. He spent considerably less than that and intends to keep it longer so in all reality it is probably going to be cheap combining.

Even if you paid several thousand quid for the thing to be dealer maintained out of season and had a few grands worth of spares in the workshop sat ready you can't be far wrong.

I would think that 16 k would include fuel, parts, servicing, man on seat

 

[DrWazzock]

Many different ways of approaching it. We bought ours for £8000 in 2004. It’s averaged about 150 acres a year. I have only just got the problems ironed out! Probably spent more time fettling it than on the seat and over that time spent maybe another £8000 on parts, including new concave rasp bars and a set of secondhand walkers. And forgot the replacement bed upgrade to 800 series for another £3k. She’s just about right now fingers crossed.

 

[T Hectares]

I would think that 16 k would include fuel, parts, servicing, man on seat

Yes, that's the budget for the whole job.
There's further considerations of course, such as cutting crops in a timely fashion, premiums, drying charges, trailers, reliability,etc but I think the contractor equivalent gives the target cost

 

[SilliamWhale]

I would think that 16 k would include fuel, parts, servicing, man on seat

But crucially not getting it when you want it...

 

[SilliamWhale]

My combine cost me £30k. Probably worth £15.

It has done £80k worth of contractor bills in 6 years. Repairs probably £10k.

 

[T Hectares]

Agreed. So using your and Devil's advocate's example, cutting 1000 acre per year would give him a theoretical budget of £160,000 to spend if it was kept for at least 5 years. He spent considerably less than that and intends to keep it longer so in all reality it is probably going to be cheap combining.

Even if you paid several thousand quid for the thing to be dealer maintained out of season and had a few grands worth of spares in the workshop sat ready you can't be far wrong.

And the good news is, if you scale it up to 3500 acres over 5 years it gives you enough to buy an X9

 

[Pieces_of_Eight]

Wondered when the X9 would get a mention...

Would an X9 fit on our roads?

Is a 50ft header suitable for our yields and field sizes? Fair enough in Australia/Canada but just can't see the efficiency saving over here.

 

[redsloe]

Similar here.
42k combine 12 years ago now worth 25k? ( Priced to change beginning of season)
Approx 64k of contractor bills saved.
Repairs maybe 5k?
Fuel use 10l/a 18000l @50p 9k
17+5+9 comes to 31k plus my own time.
Stacks up well even on a small acreage.

My combine cost me £30k. Probably worth £15.

It has done £80k worth of contractor bills in 6 years. Repairs probably £10k.

Forgot the quote

 

[Yale]

This was the last combine we had.....

 

[Pieces_of_Eight]

This was the last combine we had.....

Was it fully depreciated?

 

[Yale]

Was it fully depreciated?

Scrap.....

 

[deleted user 837354]

I would think that 16 k would include fuel, parts, servicing, man on seat

Sorry, my post was a bit simplistic and not the best explained last night , yes you would expect the other bits to come out of that as the numbers would approximate what you could be paying a contractor to do it for. Of course, there are possibly contractors who would do it for less in some areas.

 

[Bossfarmer]

So what do we reckon 10k a year depreciation over 5 years on a new middle of the road sized combine?

 

[Hooby Farmer]

Mine has depreciated £318/year