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.
@@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.
@@zfilmmakerThat's the conclusion I came to. At least for trucking. I can work on anything but do I really want to be a business owner accountant tax man mechanic salesman and a truck driver? At a certain point you got to pick your battles right?
I know one logging outfit here that has $150,000 a month payments just on gear, not including fuel, wages and repairs, I asked buddy how he sleeps at night and he said just fine, if the moneys there the bills will be paid, if not they won’t, it is what it is and I guess that’s the only attitude you can have
@@IDT69 I think when you are involved in serious infrastructure work like that and are trying, banks and investors are more willing to look over a couple bad months if long term outlook is still good. I think stuff like credit card debt, mortgages, student loan and stuff like that makes people roll their eyes and take a more callous perspective
@@SilentShiba I’m pretty sure you can miss one payment a year and it just gets pushed back instead of owing two the next month but I’m not 100% on that
@@urbanitesgarage3299lmao "inflation" yet if you look into it, it is litterally just manufactures or companies raising prices as they know they can get away with it. Ie. Walmart having it record if not super good growth during your current inflation siutation
I grew up in a farming community and still keep in touch. My good friends family farms and i think their newest tractor is around 1985 and they are doing really good, they like the older because they can easily fix and work on and there is a ton of free parts from junked out ones.
I'm 30 and I don't know what generation of farmer I am. My dad died 9 years ago now of a heart attack, probably from the stress of all the payments and debt. I ended up having to sell almost all my equipment but I was able to get us out of debt from the first time ever and I didn't have to lose the farm. Ended up getting much older equipment, as in an Oliver that I found is a sad state of disrepair and fixing it up. I don't set any speed records or production records, but I can sleep at night like a baby. If I can, I will make whatever attachment I can from hay forks, to box scrapers, to tillage equipment. I've even modified loaders to fit older tractors that they weren't made for.
$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
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.
@jttj742 What would the livestock eat if all crops where grown for direct human consumption? Do you like to eat native Prarie grass? That is one of our main crops here, we feed it to our cattle, then most of them will end up eating corn silage to be finished into beef. Corn silage is made from the stocks, leaves, cobs, and husks of the Corn plant. Livestock can convert and use most plants much more efficiently than we as humans can. Eat beef, it's the best way I have found to make grass and other plant by products taste good.
Not much wear on any of the tyres, so I’m wondering how many hours per year you use all that equipment which then leads me to ask what is the ROI on all that investment? And is there an external source of off farm income propping it up?
And the reason why prices are through the roof is because of exactly this, your need to have the biggest and the best TODAY and willingness to pay interest means increased prices for everyone else down the line. Congrats!
It's called advancing technology. It increases productivity....5 people on the Millennial Farmer TH-cam site farms 4,000 acres of corn and soybeans. Compare that to how many people it took 100 years ago. That's okay....it's fine to tell the world you have never run a real business, not even a lemonade stand and you thus have no phucking idea what you are blabbing about, Senor Troll Of the Day.
Exactly, these machines aren't worth this much, but to these farmers like this kid, they make it worth it. Manufacturers would make smaller and less pricey options if the demand was there.
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.
@@OUTDOORS55 that’s not an option. Yeah we can buy used but the potential for breakdowns, downtime, crop loss and huge repair bills doesn’t work. For large operation farming, most guys like myself run tractors and equipment 3-4 years and then sell or trade but we always have huge payments to contend with and the money comes when we can make it, not sit around until a piece of equipment can be repaired.
That’s not necessarily a bad thing. If they make more monthly by a substantial profit margin compared to the combined bill of all tractors plus operating cost, it’s a win. Farms live by staying above float, buying an older tractor and having massive failures destroys businesses. Personally I own a skid steer business and buy a brand new machine every 2 years, I sell the machine a month before warranty is up and I never have a machine in hand not under warranty for those exact reasons, having a machine engine blow up could destroy your business and actually throw you under instantly into debt. Basically I pay $24,000 every 2 years but I make over 200k profit at 15-20k a month. You can use the bank to your advantage too, saying haha the bank owns it is funny until the millionaire in the room isn’t laughing.
@@tyberious3023 odd, because as a farmer, farming 1000 acres, here in Wisconsin, and my biggest tractor is a 525 HP Steiger built in 1982, and has been down once in its 10,000 hrs , or the 1984 Allis Chalmers tractor we plant with, or the 1980 Allis Chalmers that pulls the other planter, proves you wrong. Maybe you should buy a better brand of equipment, because as the millionaire in the room, I'm laughing
Rich people do not use cash to advance their wealth. They use debt/credit and solid business plans. Pathetic losers put their money in bank accounts or more likely, don't save anything at all but they drive a big, new F150, have two snowmobiles, a boat, a lake cabin and all the fun stuff they can't afford and which only depreciates.
@@RJ1999x 1000? That's nothing once you get west of the Mississippi. You're small potatoes. These guys end up multi-multi-millionaires and that's true otherwise we wouldn't be eating.
This is why I believe our tech can read minds as well. I can just be thinking something and I get a recommended video or an ad for something I never said out loud haha. I say all that to say I was going past a farm about a week ago and they were plowing with huge John Deere tractors and my son was asking how they could afford them. I have no clue is what I told him. And now your video was on my recommendations a week later haha. Awesome video and explanation. Achievement unlocked: You've earned a new subscriber.
I'm with you about tech reading minds. It happens all the time. Yesterday I was talking to a coworker about farmers buying these huge half million dollar tractors. Today this video shows up on my main you tube screen. I've never watched a video about farming or tractors before.
Favorite tractor ... the 6150R. Love that series and am looking to buy one soon (6120 for me). Thanks for the video! Very helpful and loved hearing your insight and perspective. Thank you!
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.
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
I'm not a farmer, but I worked for a couple of farm equipment dealers doing PDI stuff back around 2011-2014. I got to drive quite a few makes and models over short distances. My favorite current production tractor for looks is probably the 7R series from JD. The last large modern tractor I actually drove was probably a 2014 New Holland T7. 270.
@@5-0295 you kill your profits and wind up going under. Please see the statistics of how many farms fail and get absorbed. Who absorbs them? Farms without debt. Debt is 100% the reason a farm fails. Nothing else outside of death.
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
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!!!
How can one individual be so ill informed? Wait....nevermind....I hear it every day from people who really believe the government just hands us a check each year to buy new trucks and tractors with. I will offer you a bit of insight. Any farming enterprise that is NOT incorporated won't be in business very long. And a family farm simply means that the operation is owned, managed, and operated by members of the same family. And appearances are most often deceiving. What most people driving down the highway "window farming" view as "nice, new" equipment is often machinery that's 15-20 years old or older. It has simply been maintained and taken care of by a family who knows how difficult that equipment was to come by. We have been accused of the same thing. But for reference, we have 7 tractors with the newest being 12 years old. They are in order, a 2012, 2011, 2009, 2008, 2007, 2004, and 1971. But they were all bought used and have been serviced, maintained, and extremely well taken care of. Our cotton picker is 14 years old and is gone through each year prior to harvest to ensure it is at peak efficiency. You should seriously consider spending some time tagging along with a farmer for a few days and see first hand the 16 and 17 hour days during peanut or cotton harvest, or trying to keep irrigation operating during 95 degree days and hot, humid nights. For the record all of our equipment is paid for with the exception of one tractor, backhoe, seed tender and a 1993 Peterbilt. And it wasn't paid for with government subsidies, it was paid for with sweat and sleepless nights.
You have to understand if government let the free market run food would be way higher in price. Then you and others would really complain . Farmers are complete idiots. They tell the government exactly what they need for that payment. Its the reason the prices are always at break even levels. In short they are all slaves.
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
for those who think the power output isn’t alot, as a farmer, the engine’s are diesel and designed to make alot of torque, whilst a car making 600hp will probably make maybe 650nm of torque, a tractor at 600hp probably makes over 4000nm of torque, this is because tractors need to tow alot of mass, and also tractor’s engines only go up to around 2500rpm tops whilst a car running at 2500rpm will make alot less power than listed as it will only make the listed 600hp at maximum rpm, if a tractor’s engine could run at the same speed as a car engine it would make far more power
Torque doesn't have anything to do with it. Power is torque x rpm. A high rpm engine can be geared down to produce more torque. Both engines in your example make the same power and the higher rpm engine will produce the same torque if you attach a gear box. The actual difference is tractor engines are constant power engines. Meaning they can produce the 600hp 100% of the time. A 600hp car engine can only produce 100% of the power for short periods of time. Thus the need for much larger engines and heavier parts/ cooling systems to handle the extra load for 100% constant power.
@@OUTDOORS55 why are you arguing with me on this, all i said was that tractor engines are engineered to produce alot more torque despite producing the same power output
@@OUTDOORS55 Torque is everything. Heavy duty diesel engines are designed for high duty cycle. They can run at 90% power all day long where as with a car, it would be difficult to even put that kind of load on it unless you were racing it or something.
Every farm is different. Where I am from, a small farm would be 3-5 k acres. I am a dealer tech so I get to see huge operations. I think that the scale of the operation plays a huge role in the prices of equipment nowadays.
My Uncles farmed together and bought the biggest and best and they did it united. Farming separately costs too much. My Grandfather was a very wise German. Now the Grandkids are coming along soon Great Grandkids will continue the tradition. My Dad always bought new. He took care of his machines and was conservative. Mom was the same way and both of them worked hard and provided us with a good living. Today’s generation seems to want the silver platter right away.
If farm subsidies didn’t exist neither would farmers and farming. They rely on the commodity exchange to set the price of the crops. 2 years ago crop prices doubled, miraculously the following year seed, fertilizer, chemicals etc. all doubled or more in cost wiping out any benefit of the increased income. Crop prices have since dropped again but input costs have not.
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
Are you saying that you can drive the 340 from the combine, with no human in the seat of the 340? Or is there some other functionality that can be controlled from the combine?
With the current setup the combine can control the 340, but someone still needs to be in the 340 to unload the grain into the semis. Pretty cool technology that we will be using again this fall
You use the term afford... These machines are not affordable, sure I can walk into a bank lean my farm to the hilt and get a new tractor, but then corn goes sub 4 dollars a bushel and now you owe money after harvesting
Wow, you're really up on all this stuff huh? How many seasons and how many crops to you plan on harvesting, just the one? You buy these machines for life, not for a few harvests. Thats why you can see in the video they are even still using his grandfathers tractors going on 70+ years. This things earn themselves back, but you have to keep growing your farm and adjust to markets. If you sit in a corner all day crying that that corn dropped to low prices, well yeah, you're not going to have a good life. Adapt, adjust, thrive.
wonder how they did it in the old days with just a basic tractor and pickup? use to live near a farm in western ma in the 60's.....farmer did it all with a john deere B and 2 pickup trucks. he had around 100 acres of actual farm land.
Here I think I plan for animal husbandry ( free range) so I won't have to use tractors. For the price of a tractor, I can buy a lot of goats and let them eat the Grass for free instead of harrowing to plant.
I plan to have a farm as a side business/hobby. I envision owning a large piece of land where everyone in the family can build their own house on thus making the farm into a literal village of family.
Renting from a neighbor or dealer for just one run could be an option. However, there are a few considerations to keep in mind, such as availability, the condition of the equipment, and any potential scheduling conflicts.
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
Do different farms ever share equipment? 1 farm buys 1 piece of equipment, the other buys a different one and they share? Or is that not possible because of the time constraints of planting/harvest?
This is a great point! Yes, this happens on occasion. One farmer may own a sprayer and the other the planter and they will help each other out. The problems usually come with determining who pays repairs, but that's not to say its not possible
Who the hell would pay those prices. There is no way those are worth almost a million dollars. I guess they will sell for that as you indicated, but the people paying those prices are nuts. Look what other things you can buy for that kind of money and you can quickly see that they do not have that kind of value, or at least shouldn't.
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?
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
the john deere with the loader .......... their someting i just love about tractors with loaders!!!!!!!!!!!!!!! not to mention i own my grand pas old 1973 john deere 1120 diesel with 143 loader on it!!!
The real answer is start farming 50 or 100 years ago when the price of land relative to income at the time wasn't insanely high. Back when hunting recreationally wasn't as popular driving up prices or corn/beans where not mostly used for biofuels and the price for land was reasonable, again relative to income at the time.
Is that bad? This family has worked for 5 generations to feed the world, thank God for that. We should be thankful for young men like this who choose to continue to work (regularly 50 or 60 hours a week) to make that happen. Let me ask you this: Are you going to leave anything for your kids one day? Should we criticize your children for your hard work, especially if they choose to do GOOD with what you leave behind?
@@jaysnowden7136 exactly my point, these people are staples of our society, and also hes choosing to work on a farm instead of playing video games all damn day.
@@jaysnowden7136 no doubt there a staple and single handedly prop up food production I would never deny that. I just mean I don't really want to take is advice when he hasn't had to struggle they way some do he definitely works hard 100% but I dream of being a farmer but sadly I won't ever be able to own a farm or a tractor. Yet he's giving advice on it. I just think he lives in a different world then most in regards to just how lucky he is to be a 5th gen farmer
Start small and build up. Go buy 10 acres and a small tractor. just paid off my 300 acres and only own a truck and 4wheeler. Next I will buy a tractor… and so on. And you guessed it, I will be leaving to my son one day under the condition and doesn’t turn into a screw up
What happens with the bank when you get a bad season? Because 50K a year for 5 machines is like a quarter of a million.One bad season and it’s disaster.Is it not better to lease from the dealership and pay per hour of usage,until you have profited enough to buy equipment with cash upfront?
Interesting that you don't mention the current right to repair debacle going on specifically with john deer. Is that not a concern for you with all of that newer equipment
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.
Not a farmer nor a trucker but I saw a promo this morning for a 2025 Kenworth semi tractor, with an 80 something inch sleeper, loaded and road ready for 240k. How in Gods name does any tractor cost 2x that to build?!? What am I missing here?
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.
@@zfilmmakerThat's the conclusion I came to.
At least for trucking.
I can work on anything but do I really want to be a business owner accountant tax man mechanic salesman and a truck driver?
At a certain point you got to pick your battles right?
Holy shit, I couldn't sleep at night with those kinds of bills. Best wishes young man.
I know one logging outfit here that has $150,000 a month payments just on gear, not including fuel, wages and repairs, I asked buddy how he sleeps at night and he said just fine, if the moneys there the bills will be paid, if not they won’t, it is what it is and I guess that’s the only attitude you can have
@@IDT69 I think when you are involved in serious infrastructure work like that and are trying, banks and investors are more willing to look over a couple bad months if long term outlook is still good.
I think stuff like credit card debt, mortgages, student loan and stuff like that makes people roll their eyes and take a more callous perspective
@@SilentShiba I’m pretty sure you can miss one payment a year and it just gets pushed back instead of owing two the next month but I’m not 100% on that
Having a business in itself is sometimes hard to sleep at night
Truth!!!
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
@@HiTech_Farmer Inflation is also 20% higher from 2020
@@urbanitesgarage3299lmao "inflation" yet if you look into it, it is litterally just manufactures or companies raising prices as they know they can get away with it. Ie. Walmart having it record if not super good growth during your current inflation siutation
@@urbanitesgarage3299That’s what happens when you trust people who should be in a Retirement home with running a country.
I grew up in a farming community and still keep in touch. My good friends family farms and i think their newest tractor is around 1985 and they are doing really good, they like the older because they can easily fix and work on and there is a ton of free parts from junked out ones.
Thanks for sharing. No question the older stuff is easier to work on
I'm 30 and I don't know what generation of farmer I am. My dad died 9 years ago now of a heart attack, probably from the stress of all the payments and debt. I ended up having to sell almost all my equipment but I was able to get us out of debt from the first time ever and I didn't have to lose the farm. Ended up getting much older equipment, as in an Oliver that I found is a sad state of disrepair and fixing it up. I don't set any speed records or production records, but I can sleep at night like a baby. If I can, I will make whatever attachment I can from hay forks, to box scrapers, to tillage equipment. I've even modified loaders to fit older tractors that they weren't made for.
true farmer ❤😅,
Appreciate you sharing your story and best of luck my dear farmer friend!
@@HiTech_Farmer Thank you. Just cut some hay today.
Hay is bringing a decent premium this summer... or so I've been told
That’s a farmer^
$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.
@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.
@jttj742 What would the livestock eat if all crops where grown for direct human consumption? Do you like to eat native Prarie grass? That is one of our main crops here, we feed it to our cattle, then most of them will end up eating corn silage to be finished into beef. Corn silage is made from the stocks, leaves, cobs, and husks of the Corn plant. Livestock can convert and use most plants much more efficiently than we as humans can. Eat beef, it's the best way I have found to make grass and other plant by products taste good.
Not much wear on any of the tyres, so I’m wondering how many hours per year you use all that equipment which then leads me to ask what is the ROI on all that investment? And is there an external source of off farm income propping it up?
And the reason why prices are through the roof is because of exactly this, your need to have the biggest and the best TODAY and willingness to pay interest means increased prices for everyone else down the line. Congrats!
It's called advancing technology. It increases productivity....5 people on the Millennial Farmer TH-cam site farms 4,000 acres of corn and soybeans. Compare that to how many people it took 100 years ago. That's okay....it's fine to tell the world you have never run a real business, not even a lemonade stand and you thus have no phucking idea what you are blabbing about, Senor Troll Of the Day.
Exactly, these machines aren't worth this much, but to these farmers like this kid, they make it worth it. Manufacturers would make smaller and less pricey options if the demand was there.
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.
Thanks for sharing!
The representation is, just don't buy it.
What about capitalism though??? Won't the market work it out under the infallible system?
@@OUTDOORS55 that’s not an option. Yeah we can buy used but the potential for breakdowns, downtime, crop loss and huge repair bills doesn’t work. For large operation farming, most guys like myself run tractors and equipment 3-4 years and then sell or trade but we always have huge payments to contend with and the money comes when we can make it, not sit around until a piece of equipment can be repaired.
What you talking about is US American capitalism. In General capitalism only works If everyone and His Dog is in debt.
All owned by the bank or Deere credit
That’s not necessarily a bad thing. If they make more monthly by a substantial profit margin compared to the combined bill of all tractors plus operating cost, it’s a win. Farms live by staying above float, buying an older tractor and having massive failures destroys businesses. Personally I own a skid steer business and buy a brand new machine every 2 years, I sell the machine a month before warranty is up and I never have a machine in hand not under warranty for those exact reasons, having a machine engine blow up could destroy your business and actually throw you under instantly into debt. Basically I pay $24,000 every 2 years but I make over 200k profit at 15-20k a month. You can use the bank to your advantage too, saying haha the bank owns it is funny until the millionaire in the room isn’t laughing.
@@tyberious3023 odd, because as a farmer, farming 1000 acres, here in Wisconsin, and my biggest tractor is a 525 HP Steiger built in 1982, and has been down once in its 10,000 hrs , or the 1984 Allis Chalmers tractor we plant with, or the 1980 Allis Chalmers that pulls the other planter, proves you wrong.
Maybe you should buy a better brand of equipment, because as the millionaire in the room, I'm laughing
Rich people do not use cash to advance their wealth. They use debt/credit and solid business plans. Pathetic losers put their money in bank accounts or more likely, don't save anything at all but they drive a big, new F150, have two snowmobiles, a boat, a lake cabin and all the fun stuff they can't afford and which only depreciates.
@@RJ1999x 1000? That's nothing once you get west of the Mississippi. You're small potatoes. These guys end up multi-multi-millionaires and that's true otherwise we wouldn't be eating.
@@craigborgardt6396 Never said we were big, but everything is paid for
Always had in the back of my mind how farmers afforded equipment. Great vid!
This is why I believe our tech can read minds as well. I can just be thinking something and I get a recommended video or an ad for something I never said out loud haha.
I say all that to say I was going past a farm about a week ago and they were plowing with huge John Deere tractors and my son was asking how they could afford them. I have no clue is what I told him. And now your video was on my recommendations a week later haha. Awesome video and explanation.
Achievement unlocked: You've earned a new subscriber.
That is creepy, but I'm glad you learned something new! Welcome to the HiTech Community!
I'm with you about tech reading minds. It happens all the time. Yesterday I was talking to a coworker about farmers buying these huge half million dollar tractors. Today this video shows up on my main you tube screen. I've never watched a video about farming or tractors before.
Favorite tractor ... the 6150R. Love that series and am looking to buy one soon (6120 for me). Thanks for the video! Very helpful and loved hearing your insight and perspective. Thank you!
Appreciate it! Good luck with the tractor purchase
Love the Mule! Was reminded of my first job on a small farm with a 4020, 3020 and a Mule. So long ago.
That is awesome!
Your high land values make john deere and the bankers smile.
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
I like the way you think. I do the exact same thing on our 2500 acre grain farm in Canada.
Great minds think alike
the Super M and JD 4020s, great tractors!
I'd love to own a 4020 yet! Or even a 4440, great tractors
Wow. Your fleet is so cool. Do that video when you get your sprayer. Thank u and your fellow farmers for all you do.
Appreciate it!
Thanks for keeping us all fed
Always!
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
I'm not a farmer, but I worked for a couple of farm equipment dealers doing PDI stuff back around 2011-2014. I got to drive quite a few makes and models over short distances. My favorite current production tractor for looks is probably the 7R series from JD. The last large modern tractor I actually drove was probably a 2014 New Holland T7. 270.
I've never driven the 7R series, but I know its close to the 8R series, so good choice!
Loved this video! My dad works for Hutson’s and I always pick his brain about financing and how transactions are made.
Thanks! Hope you learned something
How do you keep all the equipment so clean?
Nothing to do.
A power washer and wax
@@HiTech_Farmerhow many acres is your dad's farm?
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
Borrowing $600,000 over 12 years is over $850,000 repayment...Borrowing for depreciating assets keeps you poor
1st you are 100% correct. 2nd your pay back number is too low. You think they have 5% loans….try 10-15%. High risk.
An interest bearing loan to finance a depreciating asset? Insane. No wonder farmers fail.
@@MrShobar facts
For most people yes. Unlike a car or truck, tractors help farmers make money. As long as the farmer can be profitable it makes sense.
@@5-0295 you kill your profits and wind up going under. Please see the statistics of how many farms fail and get absorbed. Who absorbs them? Farms without debt. Debt is 100% the reason a farm fails. Nothing else outside of death.
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
Thanks for the equipment tour! Any thoughts on ‘right to repair’ with all those green machines?
I could watch you point at farming equipment and say their names all day
Weird
Lol...thanks Reid!
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.
I'd sleep better and be happier knowing my taxes went to a farmer rather than an overseas war
what in the word salad is this comment 🤣 no need for grammar when you got inherited assets
How can one individual be so ill informed?
Wait....nevermind....I hear it every day from people who really believe the government just hands us a check each year to buy new trucks and tractors with.
I will offer you a bit of insight.
Any farming enterprise that is NOT incorporated won't be in business very long.
And a family farm simply means that the operation is owned, managed, and operated by members of the same family.
And appearances are most often deceiving. What most people driving down the highway "window farming" view as "nice, new" equipment is often machinery that's 15-20 years old or older. It has simply been maintained and taken care of by a family who knows how difficult that equipment was to come by.
We have been accused of the same thing. But for reference, we have 7 tractors with the newest being 12 years old.
They are in order, a 2012, 2011, 2009, 2008, 2007, 2004, and 1971.
But they were all bought used and have been serviced, maintained, and extremely well taken care of.
Our cotton picker is 14 years old and is gone through each year prior to harvest to ensure it is at peak efficiency.
You should seriously consider spending some time tagging along with a farmer for a few days and see first hand the 16 and 17 hour days during peanut or cotton harvest, or trying to keep irrigation operating during 95 degree days and hot, humid nights.
For the record all of our equipment is paid for with the exception of one tractor, backhoe, seed tender and a 1993 Peterbilt.
And it wasn't paid for with government subsidies, it was paid for with sweat and sleepless nights.
You have to understand if government let the free market run food would be way higher in price. Then you and others would really complain . Farmers are complete idiots. They tell the government exactly what they need for that payment. Its the reason the prices are always at break even levels. In short they are all slaves.
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.
Small-scale robot tractors.
That would be the way to go. All of that fancy stuff, costs.
@@dalerozendaal4902 I am trying a 12 acre farm with my bees.
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!
I used to use a 1949 Farmhall M IH on my friend’s dad’s farm for snowplowing. Worked well until it literally blew up.
It literally blew up?
@@HiTech_Farmer Yeah, fuel leak + spark = kaboom.
for those who think the power output isn’t alot, as a farmer, the engine’s are diesel and designed to make alot of torque, whilst a car making 600hp will probably make maybe 650nm of torque, a tractor at 600hp probably makes over 4000nm of torque, this is because tractors need to tow alot of mass, and also tractor’s engines only go up to around 2500rpm tops whilst a car running at 2500rpm will make alot less power than listed as it will only make the listed 600hp at maximum rpm, if a tractor’s engine could run at the same speed as a car engine it would make far more power
Torque doesn't have anything to do with it. Power is torque x rpm. A high rpm engine can be geared down to produce more torque. Both engines in your example make the same power and the higher rpm engine will produce the same torque if you attach a gear box. The actual difference is tractor engines are constant power engines. Meaning they can produce the 600hp 100% of the time. A 600hp car engine can only produce 100% of the power for short periods of time. Thus the need for much larger engines and heavier parts/ cooling systems to handle the extra load for 100% constant power.
@@OUTDOORS55 why are you arguing with me on this, all i said was that tractor engines are engineered to produce alot more torque despite producing the same power output
@@OUTDOORS55 Torque is everything. Heavy duty diesel engines are designed for high duty cycle. They can run at 90% power all day long where as with a car, it would be difficult to even put that kind of load on it unless you were racing it or something.
You should do a video on the kind of subsidies farmers can receive, I have always wondered how that works.
Appreciate the input and it's been added to my list
Once you get on the hamster wheel you never get off. This is what kills the small family farm.
at this point we just farm to pay the bank. $1.6m in new equipment, monthly payments eat us. 12000 acres is barely enough
And hopefully land prices go up for the acres you do own.
Every farm is different. Where I am from, a small farm would be 3-5 k acres. I am a dealer tech so I get to see huge operations. I think that the scale of the operation plays a huge role in the prices of equipment nowadays.
Will this equipment help me spread my seed?
American farmers feed the entire world. Two thumbs up for this video. The FED needs to send more printing paper to farms than Wall Street
Thanks for tuning in!
My Uncles farmed together and bought the biggest and best and they did it united. Farming separately costs too much. My Grandfather was a very wise German. Now the Grandkids are coming along soon Great Grandkids will continue the tradition. My Dad always bought new. He took care of his machines and was conservative. Mom was the same way and both of them worked hard and provided us with a good living. Today’s generation seems to want the silver platter right away.
Thanks for sharing!
Why didn’t you tell us about subsidies?
If farm subsidies didn’t exist neither would farmers and farming. They rely on the commodity exchange to set the price of the crops. 2 years ago crop prices doubled, miraculously the following year seed, fertilizer, chemicals etc. all doubled or more in cost wiping out any benefit of the increased income. Crop prices have since dropped again but input costs have not.
Mathias - Another great video. I'm going for the BIG power. I vote 9620R 👍
Thanks! Good choice!
2020 w/loader and 3020 lots of fun
What are 8285R’s going for in your area in the 2000-3400 hr range ?
Anywhere from $120k-150k depending on the condition/shape
My favorite is the 6150R because of the loader!
Thanks Brett! The loader has MANY uses around the farm
nice equipment,makes it easier then constant breakdowns
John Deer is very unreliable in the long term....its like a range rover for farmers. Cost of maintenance is very high in the long run.
@@neilnelson7603 John Deere is moving to Mexico so there goes the quality !
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
Really enjoyed your vid. Good job!
Glad you enjoyed it!
Are you saying that you can drive the 340 from the combine, with no human in the seat of the 340? Or is there some other functionality that can be controlled from the combine?
With the current setup the combine can control the 340, but someone still needs to be in the 340 to unload the grain into the semis. Pretty cool technology that we will be using again this fall
@@HiTech_Farmer thanks!!!
Great Video !!!! i like 6:02
Reform EPA; tractors in America are at least 4x as expensive as those overseas.
😂😂😂😂😂
Great video...
Thank you for sharing.. 👍👍
Thanks for visiting!
Great Review on your tractors
Would like to know more about your favorite Tractor 👍
Thanks! Wait to see it in action this fall, that's when I'll have everything running how I want
I just wanna know how do you keep them so clean?
Power washer and glass cleaner
You use the term afford... These machines are not affordable, sure I can walk into a bank lean my farm to the hilt and get a new tractor, but then corn goes sub 4 dollars a bushel and now you owe money after harvesting
Wow, you're really up on all this stuff huh? How many seasons and how many crops to you plan on harvesting, just the one? You buy these machines for life, not for a few harvests. Thats why you can see in the video they are even still using his grandfathers tractors going on 70+ years. This things earn themselves back, but you have to keep growing your farm and adjust to markets. If you sit in a corner all day crying that that corn dropped to low prices, well yeah, you're not going to have a good life. Adapt, adjust, thrive.
@@ZenzDeluxe that's all you can do sometimes
Good point! Tractors are not a short term investment
wonder how they did it in the old days with just a basic tractor and pickup? use to live near a farm in western ma in the 60's.....farmer did it all with a john deere B and 2 pickup trucks. he had around 100 acres of actual farm land.
It is very impressive to think how far farming has come and exciting to think where it might go in the next 100 years
Great video! There's also all the technology you add on too and improvements that add to the cost.
Very true!
Best tips ❤
I plan to farm
Here I think I plan for animal husbandry ( free range) so I won't have to use tractors. For the price of a tractor, I can buy a lot of goats and let them eat the Grass for free instead of harrowing to plant.
I plan to have a farm as a side business/hobby. I envision owning a large piece of land where everyone in the family can build their own house on thus making the farm into a literal village of family.
Wish we could have an 8R 340. Our newest tractor is a JD 8130.
We used to have an 8130. I LOVED that tractor. Easy to run and simpler to fix. Just didn't have enough horsepower to run the grain cart anymore
How many acres do you and your family run?
The forbidden question.
cant you rent from you neighbor? or from the dealer? like rent just for 1 run
Renting from a neighbor or dealer for just one run could be an option. However, there are a few considerations to keep in mind, such as availability, the condition of the equipment, and any potential scheduling conflicts.
How much do you owe on said tractors?
Do government subsidies help pay for this equipment?
Yes I like the 340 but my favorite is the 6150 which is the one I have been using.
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
Do different farms ever share equipment? 1 farm buys 1 piece of equipment, the other buys a different one and they share? Or is that not possible because of the time constraints of planting/harvest?
This is a great point! Yes, this happens on occasion. One farmer may own a sprayer and the other the planter and they will help each other out. The problems usually come with determining who pays repairs, but that's not to say its not possible
id go Mccormick. i had a 76 Ford 1000 with a loader, it was a nice tractor until i ran it out of oil
Do you still have that '76 Ford?
@@HiTech_Farmer no, i seized the motor so got rid of it
Gotcha, too bad
I think when the government started paying the farmer subsidy checks is when these prices started getting out of hand.
Who the hell would pay those prices. There is no way those are worth almost a million dollars. I guess they will sell for that as you indicated, but the people paying those prices are nuts. Look what other things you can buy for that kind of money and you can quickly see that they do not have that kind of value, or at least shouldn't.
There are so many morons still paying 200% more for green paint. There are so much better options.
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.
@@HiTech_Farmer That is insane.
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?
the john deere with the loader .......... their someting i just love about tractors with loaders!!!!!!!!!!!!!!! not to mention i own my grand pas old 1973 john deere 1120 diesel with 143 loader on it!!!
I'd agree with you on that! Having a loader on a tractor makes it that much more fun to operate!
The real answer is start farming 50 or 100 years ago when the price of land relative to income at the time wasn't insanely high. Back when hunting recreationally wasn't as popular driving up prices or corn/beans where not mostly used for biofuels and the price for land was reasonable, again relative to income at the time.
Asoon as I heard 5th gen. I was like ooh this kids had everything handed to him
Probably not, these kids who live on these massive farms tend to help ou the family, so chances are he earned it
Is that bad? This family has worked for 5 generations to feed the world, thank God for that. We should be thankful for young men like this who choose to continue to work (regularly 50 or 60 hours a week) to make that happen. Let me ask you this: Are you going to leave anything for your kids one day? Should we criticize your children for your hard work, especially if they choose to do GOOD with what you leave behind?
@@jaysnowden7136 exactly my point, these people are staples of our society, and also hes choosing to work on a farm instead of playing video games all damn day.
@@jaysnowden7136 no doubt there a staple and single handedly prop up food production I would never deny that. I just mean I don't really want to take is advice when he hasn't had to struggle they way some do he definitely works hard 100% but I dream of being a farmer but sadly I won't ever be able to own a farm or a tractor. Yet he's giving advice on it. I just think he lives in a different world then most in regards to just how lucky he is to be a 5th gen farmer
Start small and build up. Go buy 10 acres and a small tractor. just paid off my 300 acres and only own a truck and 4wheeler. Next I will buy a tractor… and so on. And you guessed it, I will be leaving to my son one day under the condition and doesn’t turn into a screw up
Do you have any Valtras? Because the name (HiTech)
To tell you the truth, I had to look up "Valtras". I've never seen one in person and from what I read, most of their tractors are in Finland
What happens with the bank when you get a bad season? Because 50K a year for 5 machines is like a quarter of a million.One bad season and it’s disaster.Is it not better to lease from the dealership and pay per hour of usage,until you have profited enough to buy equipment with cash upfront?
Insurance will help with lost crops, and banks will extend loans to keep from having to repossess. They have to have confidence in you though.
Interesting that you don't mention the current right to repair debacle going on specifically with john deer. Is that not a concern for you with all of that newer equipment
It's a concern, but not something I wanted to get into in this video
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
You either own something outright or think you own it. Debt free as much as you can. It makes life less stressful.
So what you do whem you dont have the cash snd cant do the job ?
and to think it used to be all done with that Farmall M, or Super C
Wild and the fact that was only like 70 years ago 🤯
Co op. Each farmer has one variation. And they share them. Or they get the Amish with horses to do it.
With the government subsidizing your farm, which equals welfare. You can write off almost all your expenses. How much do you receive yearly?
I dont understand how farmers afford what the have on the farm. In the 80s i got near 3 dollars for a bushel of corn. Today its at 4.
Farming is a cyclical business. Int he last three years corn was near $8 and now back to $4. The answer is loans
@@HiTech_Farmer The answer is asset appreciation. Modern farming is about asset management.. the farming itself is just busy work.
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.
We stick to old equipment but my friends operation always buy new with cash I don’t quite understand it, maybe tax reasons?
Every operation is truthfully very different
Did you not ask?
@@AdrianMcDaid it’s beyond his pay grade ha
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?
3:35 12years period, o boy!!!! you work for the bank.
Buy a 700,000 combine,and you still have to buy a header ,what a rip off i think
That’s a pretty great video brother
Thanks brother!
What about a DJI Drone sprayer?
Yes, a drone sprayer is another investment in equipment. Our farm does not currently own one
I bet you play Farm Sim 24 on the hard setting.
Haha
Thanks for the video! Very informative!
$700,000…. That’s a literal house….
If not 2 depending where you live...
Not a farmer nor a trucker but I saw a promo this morning for a 2025 Kenworth semi tractor, with an 80 something inch sleeper, loaded and road ready for 240k. How in Gods name does any tractor cost 2x that to build?!?
What am I missing here?
I don't set the prices, but the technology and all hydraulics I think would be a good portion of making it more than a semi
i got a massey ferguson 4710 dyna m2 from 2021 via credit.i payd 20.k and now monthly 240$
20k down
Thanks for sharing! I've never run a Massey
@@HiTech_Farmer its pretty cool, bet not so cool like a john deere, but affordable
Where are the orange ones?
Kubota's?
I like Case but John Deere is also fantastic. I'd like to run the 340 .
Good choice!
$2 Million isn't that much, I would expect all of that to cost far higher. It's a reminder farmers don't earn as much as they should.