How Do Farmers Afford Tractors? 

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?

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!!!

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.

Thanks for sharing. No question the older stuff is easier to work on

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^

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.

It's called advancing technology. It increases productivity....5 people on the Millennial Farmer RU-vid 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.

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.

Appreciate it! Good luck with the tractor purchase

Very good point to add. Most one owner machines when sold, stay in the area

It literally blew up?

@@HiTech_Farmer Yeah, fuel leak + spark = kaboom.

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.

I've never driven the 7R series, but I know its close to the 8R series, so good choice!

That is awesome!

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

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

Appreciate it!

I'd love to own a 4020 yet! Or even a 4440, great tractors

Weird

Lol...thanks Reid!

Thanks Jeff!

Appreciate the input and it's been added to my list

Always!

Thanks! Hope you learned something

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.

Great minds think alike

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

That's awesome!

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 !

And hopefully land prices go up for the acres you do own.

😂😂😂😂😂

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.

Thanks Brett! The loader has MANY uses around the farm

Thanks for tuning in!

Thanks for sharing!

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.

Thanks! Wait to see it in action this fall, that's when I'll have everything running how I want

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

Thanks! Good choice!

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.

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.

Nothing to do.

A power washer and wax

There are so many morons still paying 200% more for green paint. There are so much better options.

Very true!

It's a concern, but not something I wanted to get into in this video

It is very impressive to think how far farming has come and exciting to think where it might go in the next 100 years

I'd agree with you on that! Having a loader on a tractor makes it that much more fun to operate!

Glad you enjoyed it!

Thanks for visiting!

Curious why the ag leader technology?

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.

So what you do whem you dont have the cash snd cant do the job ?

Tell me more, what sort of machine do you need? Lawn mower, skid loader or large tractor?

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

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.

Good questions and it really depends. Depends on financing terms, depends on cash flow needs, depends on just all around financial situation. There's no one size fits all option when it comes to equipment purchasing/financing.

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!!!

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

Thanks brother!

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

Haha

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?

Anywhere from $120k-150k depending on the condition/shape

Wild and the fact that was only like 70 years ago 🤯

If not 2 depending where you live...

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.

Do you still have that '76 Ford?

@@HiTech_Farmer no, i seized the motor so got rid of it

Gotcha, too bad

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

Yes, a drone sprayer is another investment in equipment. Our farm does not currently own one

Glad you liked it

Yes, I'll be highlighting some of your question in my video "We've NEVER Planted Soybeans This Late!"

@@HiTech_Farmer Every year the costs grow, but the return remain static. Wheat today is currently selling for the same price as 30 years ago. But despite their complaining, there are very few poor farmers... appreciating land and equipment allows them to loan more and go again. It's also why farmers have no choice but to chase more output volume, and why no farmer can afford land prices to fall.

The forbidden question.

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

Good choice!

Exactly!