How Do Farmers Afford Tractors?
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- เผยแพร่เมื่อ 28 มิ.ย. 2024
- Farmers own $600,000+ tractors, but how do they afford these essential machines? In today’s video, I explain the various methods available for farmers to purchase the equipment they need to feed the world. From buying outright with cash to financing through banks to leasing from dealerships, I cover all the options. Plus, I'll showcase the investments made on my family's farm in machinery.
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Matthias, aka HiTech Farmer, is a 5th generation family farmer from Southwest Minnesota who promotes agriculture by capturing it through the lens of a camera, one video at a time. Passionate about emerging farm technologies and the benefits of 21st-century precision agriculture tools, such as farm equipment, GPS, and autonomous tractors, Matthias is determined to bring new methods into his operation. These methods can improve his farm's efficiency and sustainability into the future. Learning from his parents' (Mike and Dawn) work ethic, Matthias sees every day as an opportunity to educate and entertain about the daily triumphs and challenges his farm faces, whether technology-related or not. His mission is to share his enthusiasm and knowledge of agriculture as he embarks on what it means to be a farmer in the modern era.
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I am a farmer, I go used, I always make the money and buy the tractor, zero borrowed money. Yes, I run older equipment but I do not let banks be involved in my life.
Thanks for sharing!
Smart! But only if you’re able to work on these tractors. If not, newer tractors are the better route. Depends what kind of farming you do though.
@@zfilmmaker i just refuse to be a minion, I will fix, fight and do whatever I can not to be a part of the complying system.
@@tunintunin3417 yup, I hear ya. If I didn’t row crop 47000+ acres and had a smaller operation I would be running used equipment I could buy outright. I love 1970-80 Ford tractors, I’ve got my dads and some I bought through the years. I love how simple and reliable they are. Todays tractors are so complicated, they are designed and built for dealer service only. I can’t have downtime, the way I have things now, I can call the dealer and yell at them. Not really but you get the point. I’m glad you’re not in this situation.
My head will NOT stop spinning after hearing each and every one of those tractor prices! Our biggest tractor was a brand new, 1949 Case SC. :)
Equipment prices are up 10-20% just from 2020
very good video depending on the size of your farm u just need the big equipment for sure and love the big green machines be safe
I watch several different farming youtube channels, with you being the HiTech Farmer you might enjoy Millennial Farmer's latest video about autonomous tractors.
On my farm we’ve actually had the JD autonomous tractor running tillage the last 2 seasons. Seeing how far it’s come since the first day we had it is impressive. The technology like Zac mentioned is continuously getting better
Great video! There's also all the technology you add on too and improvements that add to the cost.
Very true!
Very good video Matthias! I knew equipment is very expensive, but necessary for an efficient operation.
It's almost hard to believe that there's still room for profit after looking at all the costs associated with farming.
Back to the tractors. 🚜 I'm pretty sentimental, so my favorite is the old Super M. In the same way, I have a couple of trucks, a Z-71 Silverado 4X4, and my dad's old Ford Ranger 2 wheel drive with the 3 liter V6. Dad's truck is my favorite, and it's still very useful for smaller and lighter jobs, like picking up a few bags of topsoil at Lowes. Dad bought it new in 1999. Today, it has 55k miles. My plan is to pass it down in the family, and I hope it will remain in the family.
Good option Linda! It's an oldie, but a goodie! That truck doesn't have very many miles on it for being a 1999. That's less then 2,000 miles a year. Don't blame you for keeping it and passing it down to the next generation
Went on a course to learn how drive newer tractors to try and get h2a work and first one i got to drive was an 8R340 with a chisel plow was surprised at how easy it was to learn and operate
That's awesome!
Great Review on your tractors
Would like to know more about your favorite Tractor 👍
Don’t forget all the government subsidies to cover that platinum pickup. So basically the fourth way is stiff the tax payers. But. Can’t skimp on the king ranch.
My all time favorite line ever. FAMILY FARM. We’ve been incorporated since 63. We are a multi million dollar corporation for tax purposes but a ‘just a good ole family farm’” for people who don’t know how it really is.
See you at the country club!!!
Spot on.
That’s a pretty great video brother
2020 w/loader and 3020 lots of fun
Yes I like the 340 but my favorite is the 6150 which is the one I have been using.
How do you keep all the equipment so clean?
Nothing to do.
A power washer and wax
Reform EPA; tractors in America are at least 4x as expensive as those overseas.
Its tough to make it farming, especially if you dont own your property outright. Subsidies and tax rights off are another way. One other way is to get a million subscribers on TH-cam
have to be the 560 IH , , JD are good tractors don't get me wrong but IH for me every time , we all have our favorite make for sure , i do like you Farmall super M very nice with a loader
Mathias - Another great video. I'm going for the BIG power. I vote 9620R 👍
Thanks! Good choice!
that was really interesting video 👍👍👍💯💯❤
Glad you enjoyed it
@@HiTech_Farmer I have a question for you why does farmers Trade in their new tractors? or new combine? and it is only between 2 or 3 years old?
One other method. John Deere tractors have high resale value. So farmers spread the depreciation over acres as a cost per acre. Then they trade up in 1 to 3 year cycles. Deere salesman already known the Second owner of the depreciated asset and sell it quicker. So most salesman spec the new tractor with the second owner as the priority.
Very good point to add. Most one owner machines when sold, stay in the area
You need $2,000,000 in capital and supplies to plant corn that makes $20,000 profit at the end of the season. No other business offers a lower return on capital (and risk) than farming.
$700,000 combine to harvest less than $6 wheat and $5 corn. In 1974 I combined $10 buckwheat and $5 wheat with an A6 Case combine purchased used in the late 60s for $300 in Minn. Did not have to farm thousands of acres to make banks money
That’s a bit high on that s770 unless it like new and he’s including heads
I worked for a guy who said he harvested 20 acres of wheat. He got enough money to buy a brand new 1974 Chevy pickup, cash, and had money left over, plus got the straw for bedding cows.
It’s clear everyone should only be growing crops for direct human consumption. Ridiculously wasteful otherwise.
@jttj742 if you mean ethanol, yes. But then this stuff would get more expensive. John Deere's best selling tractor went out of production in 1952.
Could you tell us about how you maintain all that equipment? It looks like all that high tech equipment would need a specialist to maintain/fix. How much do you budget for repairs?
Yes I'll include some of the maintenance in a video. We usually budget 40k for repairs across all the equipment per year.
Farmers would not make it today without subsidities , we pay for that.
Large farms do not need subsudies.....but, yes, we pay for their luxurious way of farming. They would be just fine without subsidies. Don't let them fool you into thinking otherwise.
I WILL PAY farmers 3X the payments they receive . Backbone of America.
I’ve seen the expansion era, I would love to see the retraction era. More farms, and farmers but smaller everything. The land would be better off.
3:35 12years period, o boy!!!! you work for the bank.
really interesting video
Glad you liked it
What are 8285R’s going for in your area in the 2000-3400 hr range ?
Anywhere from $120k-150k depending on the condition/shape
Probably the 340 but if I was to get my dream tractor it would be a 2019 8400r duals all the way around wheel weights in the back and a full set up front fully kitted out with ag leader
Curious why the ag leader technology?
I could watch you point at farming equipment and say their names all day
Weird
Lol...thanks Reid!
at this point we just farm to pay the bank. $1.6m in new equipment, monthly payments eat us. 12000 acres is barely enough
All owned by the bank or Deere credit
How many hours are on the 8285R tractor.
I’m looking for one.
TY
Just passed 3,000. I'm changing the fluids today actually
I like the Farmalls .
I would like to run the 8R 340! 👍🏻
Right On!
How many acres do you and your family run?
The forbidden question.
and thanks for showing some of your tractors and your combine ✌also I like to drive all your tractors and your combines 😁 I thought you have two JD 9620R tractors?? and maybe someday you could show us your of your farm equipment?
Sounds like your most interested in driving the 9620? We rent the other one to use in the spring
@@HiTech_Farmer you better I like drive your 9620 I never drive one before I drive JD 4444 / 4850/ and a JD 8300 tractor but that's another story
How much do you owe on said tractors?
My understanding around here is most of them are just mortgaging their kids future land use. There are lots of stories of farms going under none of the younger generation getting use of the farm because of the massive debt.
As a long time 5 generational farmer, the high costs are because farmers let manufacturers keep raising prices 20-30% every year. I own 11 Fendt’s, worth roughly 6 million… add another 5,000,000 in attachments and implements. The industry prefers farmers be in debt to these manufacturers to keep that industry alive. Farmers have no representation… farm equipment manufacturers have millions of dollars to hire the top lobbyists. Leasing is only something young farmers do if they want a new tractor but it’s the worst way to buy/rent.
We buy no equipment that we can’t pay for. No way I’m making payments on a machine. Period. Borrowing money never makes sense. Interest will eat you alive. Now, with no payments, we buy whatever we need. No debt.
Good video though. Great content.
Thanks for the input!
Imagine your cash flow and profitability going through the roof by selling all that equipment, and then renting out your farm land to the neighbours.
Asset generating annual cash flow with zero risk. No better business model on the planet!
So that’s why groceries are so expensive
Not everyone has youtube money to buy equipment with and they have learned to live within their means. You don't need to buy new tractors every year and new combines as often as you change your underwear!
Thanks James. I have some videos from last harvest when the 560 wheel fell off you might be interested in seeing. I love the Super M, new oil and spark plugs every year keeps it running smooth
Once you get on the hamster wheel you never get off. This is what kills the small family farm.
340
Make payments.....
9620R
Solid choice!
No way that S770 is worth 700000$ in germany you get a well equipped new one’s for like 400k$ (without tax)
With the headers?
620
The BIG ONE
Government subsidies
8285r
Solid choice!
imagine the interest these guys are paying on an expensive machine like that with a 12 year term.. ouch.
As the value spirals downward.
Government subsidies and handouts, that's how farmers pay for tractors. I used to farm too and my backup was livestock. Nowadays they have crop insurance as their backup with 60% or more of the premiums payed for by the Federal Goverment. Easy peasy....this is more about bragging than informing. Farmers with this level of income don't need subsidies....they already have control of more land and resources than they will ever need.
How farmers afford this equipment? Baby boomers kids inherited land, thier kids put land into trust, LLC, some one along the line goes heavily in debt and continues to biy more land and then the tax payers buys everything for them, as the LLC files for bankruptcy. Change the name and continues farming, going into debt up to thier banks will allow. If this fails, farming is the only career in which you can get insurance on your income. Federal crop insurance.
How Do Farmers Afford Tractors
Ypu afford them by getting into millions of dollars of debt
That there's wat loggers do ....they get so fer in banks ain't got no choice but to give them money only way to collect at least interest
This is how much it costs to feed vegans 😂
This is what should have been forgiven and not worthless college degrees.
very good video depending on the size of your farm u just need the big equipment for sure and love the big green machines be safe
Thanks Jeff!