Machinery dealers/manufactures, have they lost touch with farming reality?

[Bossfarmer]

Yes. The taxman only gets you when you sell the old equipment for whatever it is worth and likely to be more depreciated on the books. The difference is taxable.

yes thats what i thought, i keep kit for a long time so rarely have this issue

 

[Bossfarmer]

Yes until you sell the tractor at 3 years old and your taxable profit is then £170K, ( or £210K if its a Fendt!) pushed down to £70K with the purchase of tractor 2, if you now have the cash to buy the tractor and pay the tax.

... I think?!

i keep my tractors until theyre only worth 20k then change

 

[Cowabunga]

i keep my tractors until theyre only worth 20k then change

You are probably taxed on that £20k but that is offset by the new one bought for £75k+ in all probability.

 

[ajd132]

Dealers and manufacturers must be worried about life after BPS. Regulation, especially for emissions, is making production costs higher but machinery inflation is just ridiculous at the moment.

I have a 400hp hire tractor for 12 weeks/year. The current 2017 one is 3 years old and is due to be changed. The same spec replacement is 25% more to buy and hire than the current one!

Where do we go? A bigger fleet of older machines kept for much longer? Why do we all feel the need to buy new gear and trade it on for new after a few years?? The Americans & Aussies don't do this - they keep them for far longer.

They only drill though and don’t rack up masses of hours doing intensive deep cultivation’s (majority of the time anyway)

 

[Brisel]

They only drill though and don’t rack up masses of hours doing intensive deep cultivation’s (majority of the time anyway)

They did. The two crop farms I worked on in Oz wouldn’t dream of putting less than 10,000 hours on a prairie bashing artic tractor. With sowing 6 months after harvest, there was plenty of time for tillage, putting 2,000 hours on each tractor each year. This was 20 years ago mind you...

 

[Mil1194]

I've asked for a quote with finance and without. He did say he could do a better price for a cash deal but I can't see it being anything better than a grand but let's see.

This was probably the best part of 20years ago but I have no reason to misbelieve him as there was no reason to. He has done an awful lot of business with my father and I over the years. It may well have been illegal but certainly no action was taken but I still strongly believe there is no such thing as 0% over 2/3/5years.

 

[warksfarmer]

This was probably the best part of 20years ago but I have no reason to misbelieve him as there was no reason to. He has done an awful lot of business with my father and I over the years. It may well have been illegal but certainly no action was taken but I still strongly believe there is no such thing as 0% over 2/3/5years.

You are correct. There’s no such thing as interest free at all. The customer pays it all. Manufacturers contributions are also a load of rubbish as well. The selling price is loaded to take into account of all these so called discounts.

The customer always pays what the manufacturer wants. Discounts are also a load of twaddle.

 

[manfromhill]

the days of swapping machines at sub 2k hrs are long gone unless farming is a hobby

they need to be doing 10 or even 20k hrs these days

Just traded a 526 with sub 2000 hrs as it was paid off and had quite a few issues over its three years did try to extend warranty at cost but Jcb Don’t extend further than agreed warranty after six months of purchase

I am a dairy farmer that needs a reliable machine for feeding cattle and if that means a fresh front line machine for loading then that’s the way I will go if I can afford
Not a hobby farmer

 

[Clive]

Just traded a 526 with sub 2000 hrs as it was paid off and had quite a few issues over its three years did try to extend warranty at cost but Jcb Don’t extend further than agreed warranty after six months of purchase

I am a dairy farmer that needs a reliable machine for feeding cattle and if that means a fresh front line machine for loading then that’s the way I will go if I can afford
Not a hobby farmer

do own your farm ?

if just a farmer and not a landowner there must be a LOT more money in milk than cereals ?

i need my tractors to be reliable but there is no way its viable to swap them at 2k hours ........ they do more hours per year than you 526 did so i guess we depend on them more ?

 

[Clive]

I've asked for a quote with finance and without. He did say he could do a better price for a cash deal but I can't see it being anything better than a grand but let's see.

do you have that in writing ? it’s illegal

i think NH got in trouble for this a few years ago ?

 

[Tim G]

do own your farm ?

if just a farmer and not a landowner there must be a LOT more money in milk than cereals ?

i need my tractors to be reliable but there is no way its viable to swap them at 2k hours ........ they do more hours per year than you 526 did so i guess we depend on them more ?

The difference is animals need feeding. Whilst not ideal, if you are delayed getting nitrogen on your crops for a couple of days because your tractor breaks down the RSPCA aren't banging on your door!

 

[Cowabunga]

do you have that in writing ? it’s illegal

i think NH got in trouble for this a few years ago ?

It was commonplace at one time but by around 2005 it had petered out for legal reasons. It is, as you say, illegal.

 

[Cowabunga]

The difference is animals need feeding. Whilst not ideal, if you are delayed getting nitrogen on your crops for a couple of days because your tractor breaks down the RSPCA aren't banging on your door!

My answer is always to have two alternative back-up plans. In my case my front end loader can fit two tractors and if the loader itself fails and can’t be repired that day, the skid steer is capable of doing its job.
I also have another skid steer, so if the one on the heifer rearing farm goes pop, I can get the home one down there in an hour.

I would never rely on one machine for such critical work. Even the milking machine has two vacuum pumps and one could run at least half the machines if needed. Only once has it been done in 40 years.

 

[manfromhill]

do own your farm ?

if just a farmer and not a landowner there must be a LOT more money in milk than cereals ?

i need my tractors to be reliable but there is no way its viable to swap them at 2k hours ........ they do more hours per year than you 526 did so i guess we depend on them more ?

Yes I own and although my loaders are kept younger my main tractor is fourteen years old and that’s my youngest with no plans of changing it

 

[Ducati899]

Just traded a 526 with sub 2000 hrs as it was paid off and had quite a few issues over its three years did try to extend warranty at cost but Jcb Don’t extend further than agreed warranty after six months of purchase

I am a dairy farmer that needs a reliable machine for feeding cattle and if that means a fresh front line machine for loading then that’s the way I will go if I can afford
Not a hobby farmer

find that interesting,as my latest 526-56 was a year old last September and only had the standard year warranty on it,it’s had a few niggles and dealer was offering to extend the warranty to 2000hrs (currently on 900) this January,meaning it was 4 months out of warranty already! I couldn’t quite get my head round buying a extended warranty on 900hrs that I’d already done though so declined

 

[Sid]

do own your farm ?

if just a farmer and not a landowner there must be a LOT more money in milk than cereals ?

i need my tractors to be reliable but there is no way its viable to swap them at 2k hours ........ they do more hours per year than you 526 did so i guess we depend on them more ?

Imagine using your combine twice a day every day starting at 4am.
More money in milk?
Cows need to be fed by 7 am and back eating if not your income drops off a cliff and issues with health and fertility.
More things to go wrong than being a day late with drilling or fertiliser.

 

[Cowabunga]

Imagine using your combine twice a day every day starting at 4am.
More money in milk?
Cows need to be fed by 7 am and back eating if not your income drops off a cliff and issues with health and fertility.
More things to go wrong than being a day late with drilling or fertiliser.

I think Clive should give it a go. He'd love the challenge and all that money.

 

[manfromhill]

find that interesting,as my latest 526-56 was a year old last September and only had the standard year warranty on it,it’s had a few niggles and dealer was offering to extend the warranty to 2000hrs (currently on 900) this January,meaning it was 4 months out of warranty already! I couldn’t quite get my head round buying a extended warranty on 900hrs that I’d already done though so declined

To be fair it was almost at end of its three years I’m only going by what the salesman told me
looked to extend as the new 532 was to big for me

 

[ollie989898]

find that interesting,as my latest 526-56 was a year old last September and only had the standard year warranty on it,it’s had a few niggles and dealer was offering to extend the warranty to 2000hrs (currently on 900) this January,meaning it was 4 months out of warranty already! I couldn’t quite get my head round buying a extended warranty on 900hrs that I’d already done though so declined

I'm still amazed you have anything yellow on the place!!

 

[ollie989898]

do own your farm ?

if just a farmer and not a landowner there must be a LOT more money in milk than cereals ?

i need my tractors to be reliable but there is no way its viable to swap them at 2k hours ........ they do more hours per year than you 526 did so i guess we depend on them more ?

You ain't seen machines work until you've seen them on a livestock farm. Started every day at 4am etc. Same work, day in, day out. It's where machines earn their crust, I can tell you. If there is any man on this forum who should be able to justify a brand new Fendt, loader, shovel, anything, it will be a dairy farmer. Just feeding your cows 4 hours late can get very very costly. You need machines that are reliable and going to work every day. A week of no wheels turning on an arable farm? Nothing by comparison.