Farm Equipment Economics According to Joel Salatin

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Provision Homestead

Provision Homestead

Ай бұрын

Check out this short 10 minute clip of a talk on Farm Economics. This was recorded at the famous Polyface Farm in Swoope Virginia during the Homesteaders Business Weekend organized by Homesteaders of America. If you have never been to a HOA event, I would highly recommend you do so!
The first thing most people think of when they think of a Farmer or Homesteader is "Tractors". But are you ready for that investment? Does it make economical sense? Are you going to use it enough to justify the purchase? What about specialty equipment; does your scale justify the upfront capital cost or are you looking at 10 years to break even?
Using a whiteboard and his sharp brain, Joel will walk you through a few examples, giving you a valuable framework for making these types of purchasing decisions with confidence!
#homestead #tractor #economics #farming #roi

Пікірлер: 181
@ultrasteve9031
@ultrasteve9031 Ай бұрын
Start paying contractors and you'll soon find the economics are far different than what is suggested here. Plus, your own equipment is always available when you need it, like making hay and the forecast changes to rain. Like when it snows and you need to clear the road. Like when you need to move fodder and muck over the winter. Get your own machinery. Buy second hand if you can't afford new. You'll find depreciation described here does not take into account inflation, i.e. contractors price will go up over time, and the value of your machinery which you own will also go up. Do your own maths.
@brentjohnson9210
@brentjohnson9210 Ай бұрын
An accountant trying to justify farm purchases doesn’t work. You need to have equipment ready to go when weather is ready. Waiting for your turn on shared or rented makes the difference of being successful or not. There are savings in the right spots when know what u are doing. But saying you can do all this by calculation is the formula for disaster. “Calculator says I can save 30% here but somehow my hay is all mouldy, what happened?”
@musicgroopie1
@musicgroopie1 Ай бұрын
Ive seen rebuilt Ford tractors from the seventies sell for 15 grand. Tractors don't depreciate like automobiles. That being said everyone's budget concerns are different,but if you own more than ten acres you'll be glad you have a tractor to maintain it.
@rangerismine
@rangerismine Ай бұрын
Should I buy a small tractor? Yes Should I spend $50,000 on equipment to make 10 bales of hay? No
@provisionhomestead
@provisionhomestead Ай бұрын
Good summary! Lol
@wesbrackmanthercenthusiast4695
@wesbrackmanthercenthusiast4695 Ай бұрын
No but if you already have animals capable of pulling equipment, I bought a complete set of horse drawn hay equipment from the 50s for 3k and am looking at 2k to get it all running in good condition you literally can't buy/fix a good condition tractor for that
@TankedFarms5151
@TankedFarms5151 Ай бұрын
@@wesbrackmanthercenthusiast4695good luck breaking a horse or ox to pull it gonna be waiting a few years for either we don’t do oxen animals anymore for a reason
@wesbrackmanthercenthusiast4695
@wesbrackmanthercenthusiast4695 Ай бұрын
@TankedFarms5151 currently working on that, got two draft mares and a colt from one the mares should be ready to go by late summer if I actually set to harness training they are already doing riding competition riding, it's me that won't be ready since I'm currently setting up a basket case of a sawmill and moving my primary barn to a better location plus have horse shows to help run and laser engrave the prizes for
@wesbrackmanthercenthusiast4695
@wesbrackmanthercenthusiast4695 Ай бұрын
@TankedFarms5151 funny enough talking to the folks who still use and work on equipment for draft power they are all in agreement and state in similar terms this same fact that I have saved to my notes from the book international no9 restoration and serviceing by linn r miller (((The horse-drawn sicklebar mower has only been in popular use since shortly after the US Civil War (1860s) earliest crude production models started to appear around 1845. Many refinements were made to the basic style of the "push-pull" frame came into being at the end of the. 20th century. The late model enclosed gear units began to appear in the 1920s "International" still made the HD mowers until after the end of World War 2. They would have continued long after that were it not for government programs to force the draft animals off the farms and replace them with the new tractors, a move seen to absorb the economic displacement which follows the dramatic end of war time economy. This was a period and rational, which gave us high powered chemical herbicides and pesticides as well. War it would seem continues to destroy long after it concludes the enclosed gear late model John deere case oliver David Bradley, and McCormick deering international mowers. I, (we) are so fond of had a Zenith, a popular manufacturer, and use that lasted just short of 25 years millions of farmers with millions of mowers built to have a serviceable life of a 100 plus years, all pushed into fence rows. I say it was far too short of a period I say we ought to still be using them and benefiting from their efficiency and practicality.))) The real reason this stuff isn't used anymore is probably because the powers at be wanted to be able to milk money out of us and now currently with the electrification of everything be capable of shutting down Political dissidents if they don't agree with you like they currently do in China
@contemporaryprimitiveman3469
@contemporaryprimitiveman3469 15 күн бұрын
I bought a used kubota utility tractor 15 years ago. It’s worth more now than what I paid for it. My math works ok. Spent minimal on maintenance and repairs, a couple front tires and some upgrades
@provisionhomestead
@provisionhomestead 14 күн бұрын
Right on
@paulmcfeeters5554
@paulmcfeeters5554 27 күн бұрын
My travtors are old fords, they cost 2k each if running. 1k or less non running. Not suitable for all tastes but i can afford a tractor on a kids allowance compared to green paint.
@tommartin8155
@tommartin8155 Ай бұрын
Great video. It only makes sense when it's to scale.
@provisionhomestead
@provisionhomestead Ай бұрын
Solid advice for sure. I'm personally trying to figure out how to put 1,000 hours on my tractor to justify the purchase... lol
@jasonpeters3228
@jasonpeters3228 Ай бұрын
@@provisionhomesteadjust get a good deal on a cheaper used one and the numbers are in your favor. Or if you really need one for just heavy lifting it even makes since to save your back and make you 100x more productive with your time moving dirt etc..
@provisionhomestead
@provisionhomestead Ай бұрын
We purchased 2 used ones, and I kept having to stop and fix them. I ended up selling both of them and getting a new Kubota L series. I have plenty to do around here on our 105 acres, but I still work an 8-5 right now. Otherwise, I would probably put 1000 hours on this thing, no problem.
@mrfixit5404
@mrfixit5404 Ай бұрын
As I get older I tend to think of a tractor more as an employee. So I think what would it cost me to hire somebody to get some work done.
@provisionhomestead
@provisionhomestead Ай бұрын
Excellent mindset!
@hadenwesley6548
@hadenwesley6548 Ай бұрын
GREAT piece! So few talk about this in numbers AND relationship. Genuine question: if hitting high numbers (1000 annual hours, 5000 hay bales, etc) then won't you miss depreciation because equipment won't last 10 years, thus making it even pricier? I know this is a concept piece speech (repairs, labor, etc wasn't calculated for ease) but wouldn't equipment--esp if not new--give out and/or run far less efficiently by almost half that? Rarely discussed, but the calculation of economy of scale does have a tipping point where bigger isn't better, so I'm VERY curious on thoughts of others more experienced than me. Thanks in advance for anyone who provides any thoughtful comments!
@grizzz6884
@grizzz6884 12 күн бұрын
big is never better , that is why he says farmers are lonely , with all the tec we have today , i could milk 10k cows by my self . until i get hurt an need help for a few weeks . community is all that matters .
@JimJWalker
@JimJWalker 29 күн бұрын
I got my 1025R with zero tax and zero interest. At least 2-3 times a month I use it to accomplish something that I would not be able to do with my hands. I have also used it to clear the road of fallen trees after a hurricane helping my neighbors. I will be happy when it is paid off, but I am glad I bought it.
@bernardbarn
@bernardbarn Ай бұрын
I like watching Joel. I understand his numbers, but our machinery is 40 years old, Massey185 and New Holland square baler. They have definitely earned their keep with regular maintenance being key.
@ciphercode2298
@ciphercode2298 Ай бұрын
Tractors are a must have on any farm or homestead. Its impractical ti farm out all your work,no matter what scale youre doing. Being independent and on your time schedule instead of someone elses holds more value to me than depreciation of equipment. Spend as much as you can afford for a good used tractor thats the size you need with the features you want. Youll find a large market of used implements to suite your needs. Some,if not all will be in need of some maintenance, so dont overpay. Maintain your equipment well and run it til youre an old man with no business on equipment any more.
@provisionhomestead
@provisionhomestead Ай бұрын
I think I take exception with "any". It would have been nice to have one at our last homestead but we could just borrow the neighbors. We just didn't have enough land to justify the purchase. There's also the consideration of the type of enterprise. If your intensive grazing 10 cows on 5 acres and running small mobile chicken shelters by hand, you really don't need one. It may be nice to have for winter feeding but you could always do square bales.
@killytoo
@killytoo Ай бұрын
I used walk behind for a few years now have a tractor because the implements for tractors are way less expensive I wanted a stone burier for my bcs and the tractor one was half the price and twice the size
@redemptiverevelation
@redemptiverevelation 13 күн бұрын
Most small scale chickens and orchard don’t need a tractor. Atv and truck are higher priority
@ciphercode2298
@ciphercode2298 13 күн бұрын
@@redemptiverevelation Yeah,I guess if you dont harvest firewood,move anything heavy,garden or anything like that then,no you dont need a tractor. I cut my own firewood, have 35 chickens breed rabbits and quail. I also garden and think a tractor would be very helpful. Moving wood,gravel,tilling and even mowing wood be made much easier.
@redemptiverevelation
@redemptiverevelation 13 күн бұрын
@@ciphercode2298 firewood: atv and truck and trailer over tractor any day. Gravel gets delivered once a year, we spread by hand or pay $100 to use the neighbors skid steer. No need for tractor for wood chips, chickens, orchard. Atv, truck, chainsaw, trailer, snow blower, generator, wood chipper, etc… but no need for a tractor. And if we need excavation, we borrow an excavator. We are saving tens of thousands and our tools more than do the job
@matthewkubik3874
@matthewkubik3874 8 күн бұрын
My john deere utility tractor had an MSRP of 12,000 when it was new in 1989. I bought it in 2019 for 12,000 and today it has appreciated and is now worth 18,000. Tractor currently has 800 hrs on it and i put about 50 hrs a year on it.
@hibdar4709
@hibdar4709 Ай бұрын
I have read some of his books. He buys grain from other farmers with tractors and also hires other farmers with tractors to put up his hay. One way or another you pay for a tractor.
@hughmarcus1
@hughmarcus1 Ай бұрын
Yes but there’s economics there too. Large construction companies don’t own much plant now. They’ve worked out it’s cheaper to hire the kit or pay a contractor when you need it. The reality is that most farms have kit that spends 11 months of the year in a shed.
@TankedFarms5151
@TankedFarms5151 Ай бұрын
@@hughmarcus1yeah ya have that kinda wrong the most expensive thing on a farm that get very little use but is also the most important thing on a farm is a combine gets used twice a year for about 100 hours each use
@provisionhomestead
@provisionhomestead Ай бұрын
The context in which Joel is operating is not a massive monoculture where specialty equipment like a combine could be economic due to scale. The context of all this work is in the realm of regenerative AG, multi-speciation and diversification of enterprise. That's probably where the disconnect is.
@rexmundi8154
@rexmundi8154 Ай бұрын
A lot of extension offices have equipment you can borrow or rent so for some things it makes sense not to buy it. But not having a tractor at all? I think that’s a stretch. I really dislike the old 8n as a tractor, but they’re practically free. I have a Kubota with a loader on it and now that I’m pushing 60, it really helps with the heavy lifting. Like what are you doing your basic field management with? You just pay someone else to bush hog? Most farmers I know don’t have time to do their own work. Buying their time and playing off their neighborliness is just exploitive.
@TankedFarms5151
@TankedFarms5151 Ай бұрын
@@provisionhomestead monoculture farming doesn’t exist in America unless you are looking at permaculture things like orchids you could say that’s monoculture but American farming doesn’t mono crop.
@Happy-dane
@Happy-dane Ай бұрын
I did not wanna hear this. I first thought yeah thats your numbers Joe. Then I ran my own calculation, I think a bit of sweat went down my spine.😮 😂
@provisionhomestead
@provisionhomestead Ай бұрын
I had just bought a tractor 6 months before sitting there recording this and was definitely sweating a bit...
@AnarchyEnsues
@AnarchyEnsues 23 күн бұрын
The amount of hours on a machine= it's depreciation. A 10year old machine with 1000hr is worth more than a 1yr old machine with 10,000 hrs on it.
@maximwhocares9575
@maximwhocares9575 Ай бұрын
Economics aside (yeah yeah… + gas, taxes, etc), he makes an excellent point of having run the numbers to have a piece of mind about a decision. I always run my ideas by my wife (who has little to no interest or knowledge in my farming shenanigans). She gets to look at my numbers, justification, assumptions and exit strategy.
@provisionhomestead
@provisionhomestead Ай бұрын
Solid advice! Talk to someone who is unbiased and see if it still sounds good trying to pitch it to them. Well, your wife may actually be a little biased in the direction of less new equipment if she's anything like mine.
@amiryouseffgh271
@amiryouseffgh271 Ай бұрын
That is very wise.
@hadenwesley6548
@hadenwesley6548 Ай бұрын
OH second question: if near a tipping point or critical operation, wouldn't it alleviate some risk to own equipment due to potential no-shows or unforeseen things? Lessening risk always costs more.
@Nate-outdoors
@Nate-outdoors Ай бұрын
1 gallon of diesel is 40hrs of work with out it.......let that sink in
@Mammothbaron
@Mammothbaron Ай бұрын
We have 5 tractors, a bulldozer, 13k lb excavator, hay equipment. Probably everything was purchased under $80k. We use the dickens out of every piece of equipment except the old 2wd tractors. We are going to sell them. Use and maintain the equipment, don’t let anything just sit around. I think every piece of equipment should get 300+ hour each year to justify keeping it.
@brianjonker510
@brianjonker510 Ай бұрын
My rule of thumb is 500 hours and a purchased tractor needs 650 hours and a new tractor needs 1000.
@glendonkuhns7
@glendonkuhns7 18 күн бұрын
Consider a bale accumulator if you want to make small square bales without hand labor. Disclaimer: Our family company (Norden Mfg) builds bale accumulators.
@FarmToMarketRoad
@FarmToMarketRoad Ай бұрын
What are your thoughts on a BCS instead.
@provisionhomestead
@provisionhomestead Ай бұрын
I think they are awesome for your market gardens. Not sure what Joel would say but I think the principle he shares about knowing your numbers for your specific situation still rings true.
@BarnGeek
@BarnGeek Ай бұрын
There is a huge opportunity cost of NOT owning a tractor, that Joel is completely ignoring here. I wasted many years of my homesteading life not owning a proper tractor. I currently put about 200 hours a year on my $20k tractor and I use it daily. So by Joels figures that puts my cost basis at $10 per hour. That's CHEAP! Do you know how much it costs to rent a tractor? Not just in dollars but in time spent going to get the machine, when your done washing it, worrying about getting it back on time... Not to mention all those little tasks that don't get done because they don't justify a day or half a days rent? But, those tasks definitely DO add up and end up costing you WAY more than even $30 per hour! This is one of the short list of things I wish I could tell my younger self. Stop being cheap, just go buy the tractor! They are worth every penny.
@BarnGeek
@BarnGeek Ай бұрын
Also wear and tear on your body, it's cheaper to replace a hydraulic cylinder than it is to replace a knee.
@BarnGeek
@BarnGeek Ай бұрын
Thirdly, an IRS depreciation schedule is a pretty poor place to start. After 10 years that tractor is still worth at least half it's original value, even if you put 10k hours on it.
@jrpotter9659
@jrpotter9659 Ай бұрын
He is not sayingnever buy a tractor, he is saying that people need to know the numbers before making the purchase.
@provisionhomestead
@provisionhomestead Ай бұрын
I agree and I think Joel would agree too. Not all of us are lucky to have a nice neighbor who will come over to our property and do tractor work for $100. However, at our Florida homestead, that was the case. I gave the neighbors across the street eggs in exchange for using the tractor every now and then.
@jhunt1313
@jhunt1313 Ай бұрын
In Indiana 2.5 tons of hay per acre... average. Small square 50 pounds... what am I missing. That is a lot of acres. Did he say the equivalent to 30,000 small bales a year. Approx. 100 bales per acre. In Indiana. Even if you do three cuttings and your land does double the tonnage of average output. What am I missing? You would need 50 acres for 30000 bales.
@jlkkauffman7942
@jlkkauffman7942 Ай бұрын
I agree with everything, I would only add that sometimes you have lost revenue from not being able to get things done in a timely manner and that needs to be factored in.
@provisionhomestead
@provisionhomestead Ай бұрын
Thanks for the comment! Agreed. Making 20,000 bales sounds amazing until that's all you do the whole year. Joel has a pretty established team at this point so he can put out those numbers. The rest of us need to think in terms of our personal capacity.
@jasonpeters3228
@jasonpeters3228 Ай бұрын
I agree if it makes you exponentially more productive per hour even if you don’t value your time work/hr or have to pay for extra help.
@brentjohnson9210
@brentjohnson9210 Ай бұрын
It makes the total difference.
@davidkirschten878
@davidkirschten878 Ай бұрын
I wonder if the neighbor ever knew what Joel really thought of him.
@provisionhomestead
@provisionhomestead Ай бұрын
That he was lonely and liked to chew tobacco?
@reinbeauviewfarm
@reinbeauviewfarm Ай бұрын
Who works for a 100$ a day? People around here charge $75 an hour with 3 hour minimum. I agree for someone like me to pay someone for their time and tractor is worth it. If people were 100$ a day, I could afford them for a week at a time 😅
@benjamingrist6539
@benjamingrist6539 Ай бұрын
There's a small but growing number of homesteaders who are going back to using draft animals to power their farms, because it's cheaper to grow hay and pay vet bills for a horse/donkey/mule/ox than it is to fix and buy fuel for a tractor. Plus, these "organic tractors" produces manure you can use to make fertilizer. Not to mention that implements for draft animals are a whole lot cheaper and easier to fix than implements for tractors.
@provisionhomestead
@provisionhomestead Ай бұрын
Sounds amazing but also very daunting. But guess who could keep on going if everything hits the fan...
@thebeautifulones5436
@thebeautifulones5436 Ай бұрын
Wheat farming before tractors needed another quarter to a third of the area under wheat to grow feed for the horses. Might be just about the same proportional cost of fuel now but the result is much more food and much less labour. In a Societal breakdown people will come and eat your horses.
@TankedFarms5151
@TankedFarms5151 Ай бұрын
Very true but people now days are conflating actual farming and some homestead on 5 acres, you can use drafts one you 100% can not
@gentlegiants1974
@gentlegiants1974 Ай бұрын
I'm no homesteader, I rent all the 70 acres of land I use. But I grew up poor farming and am mechanically inclined, will buy a basket case for scrap price and get it running. I have draft horses and they are my primary source of motive power. I would not advise people to run out and spend good money on horses and the necessary harness and machinery unless you have what it takes to make it all work together. It becomes your whole life. I can farm for cheap using a hybrid model using "junk" from the past 120 years because it is what I have always done. My channel details some of the horse work I do farming and logging. Keeping a team just for sleigh rides or wagon rides is a poor investment, same as with a tractor, you need to be working them all year round. My big tractor is a Farmall 826 bought from scrap and it is only used for jobs needing the HP. Yes it sits all winter, but the value there is cheaper than purchasing a gigantic motorized forecart, or paying a custom operator who shows up the day after your hay got rained on to round bale it. I stopped paying custom operators 20 years ago due to no-shows as storm clouds unleashed their fury on my hay and grain.
@wesbrackmanthercenthusiast4695
@wesbrackmanthercenthusiast4695 Ай бұрын
I bought a complete set of horse drawn hay equipment and I like the folks/ equipment so much that I'm trying to start a horse drawn equipment shop for my local Amish communitys and friends in the horse shows
@dalepetersen1166
@dalepetersen1166 Ай бұрын
I figured it out. You have to make $3 a bushel profit on 160 bushel an acre corn just to beat the money you could make on Bank interest for that asset
@TankedFarms5151
@TankedFarms5151 Ай бұрын
What figures are using come up with these random numbers.
@jeffingram9499
@jeffingram9499 29 күн бұрын
All depends on how much dirt you got in your veins.
@farmingfromscratch
@farmingfromscratch 11 күн бұрын
Joel says don't worry about the numbers and I get that he is trying to make a point. But you can get started with a tractor for much less, the value of a tractor goes far beyond just making a few bales of hay and another thing to remember is that well maintained equipment in real life DOES NOT depreciate the way Joel is showing (yes for the accountant it might). If you are buying good quality second hand equipment, a lot of the time that stuff is worth the same if not a little more than when you bought it and if you want to buy into Joel's theory then after 10 YEARS IT"S COSTING YOU 0 yes ZERO / BALE, So over the true life time of your equipment things are very different!!!! My most useful thing on the farm is a Tractor with a front loader (but depends on the type of farm) We have got to be careful about cherry picking info to make a point, there's a better way to present that idea Joel. (of course we do not see the full context of Joel's talk here, as it looks like this has been taken from a longer presentation)
@hughmarcus1
@hughmarcus1 Ай бұрын
Gosh. How have I managed as a farmer to make it to 63 😉
@provisionhomestead
@provisionhomestead Ай бұрын
😆
@derekmendoza5965
@derekmendoza5965 29 күн бұрын
On the thumbnail at a glance thought he was freddy krueger
@provisionhomestead
@provisionhomestead 29 күн бұрын
Now I can't unsee it... 🤣
@jrifter1281
@jrifter1281 26 күн бұрын
i need mine, state took my drivers license in 2019. i drive my shit to town all the time.
@user-mi4du9rd1j
@user-mi4du9rd1j Ай бұрын
That thousand hours a year he mentioned to make owning a tractor worthwhile comes out to 25 weeks at 40 hours per week. I 've never known ANYONE who runs a tractor full time for six months out of the year on their own place. But we can't figure out why small farmers keep going broke...
@dinglesdingler1211
@dinglesdingler1211 Ай бұрын
Save yourself 11 minutes. If youre asking yourself this question, this answer is yes.
@provisionhomestead
@provisionhomestead Ай бұрын
The answer was an easy 'no' for us at first. We didn't have enough land or scale. It would have been nice, for sure but definitely not worth it.
@dalepetersen1166
@dalepetersen1166 Ай бұрын
If you have $8,000 land per acre making 100 square bales a year per acre that is $80 per Bale in land. With an opportunity cost of 7% per $80 that is $5 per bail pretty expensive bail
@malcolmchapman3032
@malcolmchapman3032 Ай бұрын
Didn't Jeol used to say only idiots make hay?.....or was that someone else?
@provisionhomestead
@provisionhomestead Ай бұрын
It may have be him but probably more along the lines of "selling hay." I'm not sure he sells his hay but stockpiles it for the winter. So in his analogy, he's saving himself the cost of buying hay by producing it himself for around .50 a bale.
@jonstevensmaplegrovefarms3754
@jonstevensmaplegrovefarms3754 Ай бұрын
If you're only making 200 males a year.Of course you would not own equipment but at the same time them two hundred bales would not be generating much revenue on the farm even with the zero debt. It's one thing to be small scale but You still need to get big enough to actually make money. I like his theories and a lot of what he says. But but one animal at even crazy.Profit levels still means you're working off the farm. 15 or 20 animals at really good profit.You're gonna have to have some investment?But now you have enough money that you might not be off the farm
@provisionhomestead
@provisionhomestead Ай бұрын
Balancing act for sure. I think that's why he depreciates over 10 years. To be honest, 10 years is too long in my mind but I guess that's playing the long game.
@duck-n-cover477
@duck-n-cover477 Ай бұрын
Don't forget the land and taxes! Did I say taxes?
@provisionhomestead
@provisionhomestead Ай бұрын
Hey! We don't use those profanities on this channel... lol
@blainecelestaine4543
@blainecelestaine4543 Ай бұрын
can't speak on hay equipment. But if you have a small farm you need a a tractor. My tractor was 4500 used. No loader.. get one with a loader. Box blade and a bush hog. Later on get a tool bar , finishing mower,gin pole. Etc from auctions estate sales etc. the box blade has 10 different things it can do . U can't get a a acre cut less than a 100$ if you do that 12x a year. Even if you only put 200 hrs a year which you will if your homesteading or farming that's $10k worth of work not everyone has a bored $100 a day neighbor
@RedIron1066
@RedIron1066 27 күн бұрын
I call BS. I make around 1k squares & 50ish round bales a year with under $6k in machinery. Buy good, simple machinery and fix it yourself. Work on it in the off season so it’s ready to go when needed. Nothing I have is new or nice, but it’s all reliable & well maintained.
@841577
@841577 Ай бұрын
It’s not all about the money. Could I get by without one on my small homestead? Yes. Do I want to? No. Plus….bonus…. they are fun to operate. That alone makes it worth it to me.
@provisionhomestead
@provisionhomestead Ай бұрын
I'm with you on tractors being fun. I would go as far as so to say "therapeutic"! However, Joel is talking about running a successful farm business, and unfortunately, the longevity of your operation is all about the money in a lot of cases.
@841577
@841577 Ай бұрын
@@provisionhomestead fair enough. 👍
@TractorTimewithTim
@TractorTimewithTim 4 күн бұрын
But the tractor is not worthless in 10 years. After 10 years, likely still worth 15k…or after inflation, perhaps worth the original $30k. Many tractors are worth what was paid for them many years ago.
@provisionhomestead
@provisionhomestead Күн бұрын
Agreed! Don't think he was saying it is worthless, just depreciating. PS, I love your videos and am a big fan of your channel!
@TractorTimewithTim
@TractorTimewithTim 22 сағат бұрын
@@provisionhomestead thanks for the kind words. His financial calculations assume no remaining value. His entire point is based on this. Residual value of the tractor renders his point invalid.
@livingritual1965
@livingritual1965 Ай бұрын
I agree tractors are far from needed, I work my weather and buck goats on my place. But I don't think his maths are any good for answering the question. You mostly need to calculate the man/work/Hr ratio that an hour of the tractor completes. If the tractor "costs" you $30/Hr the way he figured it in the early example you then look and see in that hour of tractor use how much work was accomplished and then compare how many hours would it take people to do that same work.
@matains88
@matains88 Ай бұрын
All due respect to Joel, but his math is broken. The idea that a tractor you bought for 30k would be worth nothing in 10 years and 1000 hours on it is absurd. It would still be worth 20-25k, or if you were smart and a bit lucky, it might even go up in value.
@AuctionJunky
@AuctionJunky Ай бұрын
He’s depreciating it like it’s a line item on a spreadsheet. Not uncommon for businesses to do. With that being said, I’m 100% on your side on this one. Keep it nice for 10 years and you’re going to recoup 60-70% of your purchase price and be far more efficient in your day to day.
@provisionhomestead
@provisionhomestead Ай бұрын
Agreed, he's not saying it has 0 value, he's just depreciating the asset in the books. I bought a 52 8n for $1500, spent $200 to convert it to 12v and give it a full tune up. Used it for 6 months and then sold it for $2200. Rumor has it, the 8n originally sold for $500. Of course, the dollar was worth more back then.
@Ironrodpower
@Ironrodpower Ай бұрын
Sorry but value does and will not go up. The price might. But price is not value.
@matains88
@matains88 Ай бұрын
@@Ironrodpower true in general, but there are exceptions among classic era tractors which go up in value even when accounted for inflation. I know a salesman here in eastern Europe that is sending old Fendts back to Germany as their prices skyrocketed there.
@hair2fab
@hair2fab Ай бұрын
Purchased a brand new Kubota for 24k 0% for the life of the loan with attachments in 2020, it is now 2024 with 400hours and worth the same 24k. Make smart investments, don't listen to people as if they are God. It's just an opinion.
@wesbrackmanthercenthusiast4695
@wesbrackmanthercenthusiast4695 Ай бұрын
Yeah you don't need a tractor you need ground driven equipment my horse drawn equipment isn't depreciating, doesn't require fuel ,produces the very feed/hay they have to eat irregardless (even if they are cows there were ox hitches on the market ive seen pictures in books sold by ihc) and it isn't contributing to fossil fuel consumption, or strip mines for batteries and solar, and on top of that my Amish friends are doing very well for themselves the horses appeare to be more economic than tractors because of gas prices and the inability to repair the equipment with ones own efforts because of proprietary equipment and software,
@provisionhomestead
@provisionhomestead Ай бұрын
Your not alone! I really admire my Amish neighbors. Boy do they work hard!
@RobertSkene-qw3ob
@RobertSkene-qw3ob Ай бұрын
Horses slow,Oxen slow, Humans slower, Turtles slower yet, snails ! Well plow too heavy! Tractor ? Sit back , relax,and leave the driving to GPS!!!🇨🇦🤣
@provisionhomestead
@provisionhomestead Ай бұрын
He actually mentions his fancy hay tractor near the end of the video. Don't think you guys are too far off.
@FrostyThundertrod
@FrostyThundertrod Ай бұрын
I would never buy a new tractor you can Oliver 1650 with a loader or a ford 6000 for less then 10k and it will do everything you need
@provisionhomestead
@provisionhomestead Ай бұрын
I hear you and tried getting some older tractors for cash when we first moved here. I ended up spending more time fixing them and couldn't find a good mechanic in the area... Didn't help that I was sold a Ford 4,000 which was really a Ford Industrial repainted blue so my repair manual was hit or miss. Lol
@tomnelson9545
@tomnelson9545 Ай бұрын
He is wrong like many comments say. You can buy tractors for less. They hold there value. Everyone has different circumstances.
@TankedFarms5151
@TankedFarms5151 Ай бұрын
Right his logic makes no sense as a farmer you don’t get rid of a tractor if it’s working and doesn’t cost more to fix than it is worth. So by saying that I mean if I buy a tractor and use it I’m never getting rid of it until either the tractor shits out or I get big enough to upgrade and still probably get rid of the original one
@benjaminsagau
@benjaminsagau Ай бұрын
My math is simple, What’s more expensive, me breaking my back or a loader, My back is worth more than a machinery, even if it costs me 50 usd an hour. Easy math. If you live in USA , it’s the cheapest thing you can buy. If you injure youreself you can with a probability of 90% go bankrupt even if you are middle class. Your math is not matching my logic Mr. Joel.
@provisionhomestead
@provisionhomestead Ай бұрын
Depends on the enterprise. We were so small starting up that we could get by with just borrowing a tractor. Today, there's no way I could get by without it.
@benjaminsagau
@benjaminsagau Ай бұрын
@@provisionhomestead I own 8 acres and work the land, I bought an old bobcat 40170 and it’s the best thing I could invest my money hands down. Now, I know majority of people can’t do or justify that, but a small loader is a huge health improvement for everyone, especially when getting old/older
@TankedFarms5151
@TankedFarms5151 Ай бұрын
Well this comes down to a lot of things I like his stuff but he’s wrong in this one. 1. Don’t buy the expensive tractor buy a used bobcat/skidsteer get far far far more out of it and will be used far more often than a tractor and have endless attachment possibilities 2. Why buy something that you are gonna use almost everyday to get rid of it that’s dumb your small little 5 acer homestead will never out use the tractor or bobcat 3. This comes back to the argument of you don’t need shoes to run but it sure as hell helps.
@dungeonmaster6292
@dungeonmaster6292 Ай бұрын
l e t ' s b u y a t r a c t o r
@provisionhomestead
@provisionhomestead Ай бұрын
My favorite part. I'm sure alot of us just stopped the video right there. Lol
@jhosk
@jhosk Ай бұрын
I like the guy but he's wrong! The savings on my back pain alone is worth it. His lack of tax law is astounding, depreciation is what you deduct from your taxes, in essence its almost free!!!!
@provisionhomestead
@provisionhomestead Ай бұрын
I need to talk to your tax guy! How do I make my tractor free?????
@edwardbrowns8436
@edwardbrowns8436 26 күн бұрын
Well then my tractor ain't worth a dime and I'm still paying on it. 😂
@tangoseal1
@tangoseal1 27 күн бұрын
Tractors have the highest resale value of anything. Im ot sure im supprting this mans claims.
@klauskarbaumer6302
@klauskarbaumer6302 Ай бұрын
There are enough Amish farms ( and i might add non-Amish ) in the country which prove that farming with draft horses or mules is profitable. In my view many of our farmers actually prefer to be heavy machine operators to being farmers.
@provisionhomestead
@provisionhomestead Ай бұрын
Excellent perspective!
@michaeloconnor9809
@michaeloconnor9809 Ай бұрын
A tractor by itself is useless. You have to work something off it or pull something to make it functional so that extra something has to be added to the tractor price. Plus extra fuel costs etc. Expensive retail cost of production. Use the contractor where possible
@provisionhomestead
@provisionhomestead Ай бұрын
I think that was the point he was trying to make. He puts the disclaimer at the beginning to not get worked up over the numbers but consider the principle... but of course, alot of people are getting worked up over the numbers.
@dankoopman4616
@dankoopman4616 Ай бұрын
There's always a piece of farm equipment that is considered a necessary evil. It may never pay for itself but you have to have it. This man definitely does not understand how it works
@keithcarr4256
@keithcarr4256 14 күн бұрын
If you need a piece of equipment and don't buy it you will pay for it and not own it
@southwestwifarm3516
@southwestwifarm3516 27 күн бұрын
As much as I respect Joel and his farming style his numbers on hay equipment are way off
@ourv9603
@ourv9603 Ай бұрын
Naw, you dont need a tractor, hire 400 guys from south of the border and theyll get it done. !
@provisionhomestead
@provisionhomestead Ай бұрын
😆
@georgea6403
@georgea6403 Ай бұрын
Wow man. Thanks to 2x speed up. I only wasted 6 minutes of my life.
@TankedFarms5151
@TankedFarms5151 Ай бұрын
Ok ok ok that’s the dumbest thing I’ve ever heard a 1000 hours in a tractor or don’t own one?!? That’s 83 days a year for 12 hours a day. As a farmer that manages several thousand acres we don’t even do that and we run big boy tractors and his math makes 0 sense on the logic of not having one what am I supposed to do go farm this shit by hand 🤦🏻‍♂️🤦🏻‍♂️
@provisionhomestead
@provisionhomestead Ай бұрын
Or 3 hours a day, 6 days a week. Or if you have an additional farm hand, 1.5 hours per person for 6 days a week. It is ALOT of use in a single year but I think that's the shock factor he was after.
@Rob1066-
@Rob1066- Ай бұрын
Okay I got a solution. You have a tractor for a bunch of farmers even a Town tractor. You tell them what they need done they come over and do it and go to the next property. Since we don't have mass transit we all have to have cars, I propose the same model for passenger transportation. A town taxi answerable to the town or the county at the largest. You can elect the Town tractor men and the Town taxi director, and we contribute to the shared resource so that we can all use it efficiently. The town will have full-time mechanics which will be good jobs for in town or in county people. But we will use a lot less private automobiles and spend less on fuel etc and still get where we need to go. The car expenses are ridiculous expense to put on a working people. The wages of working people have not gone up with inflation. I'm a blue collar worker making 20 bucks an hour and I'm poor. And so are my co-workers. Hard-working and poor an Americans. I was always so offended by the jobs Americans won't do trope. The people who say that are lazy people but they don't acknowledge the existence of heritage Americans who aren't lazy who work hard I want to have a say over how our country is run.. They think that every American is like themselves. So yeah we need to pull resources I mean we do the water system we do fire department we do the police so transportation and a shared contractor would also be good functions of town or county government. We would be able to participate in the economy without being required to own a large piece of capital like a tractor we can have a farm and the town tractor comes in and does some stuff for us and moves on. This lower bar to the participation in the market would be very good for local economies. The suburbs could participate in the food economy.
@llbailey9946
@llbailey9946 25 күн бұрын
He doesn't seem healthy. Huffing & puffing, big belly, leaning on things... Anyone know?
@provisionhomestead
@provisionhomestead 25 күн бұрын
I was there with him in person and he seemed great. I believe he is 67, and this clip was at the end of a 2 hour talk.
@JohnVanRuiten
@JohnVanRuiten 19 күн бұрын
Y'all need Jesus!! Know Him today and He will save you from hell for all eternity!! He's comin real soon!!
@flyingeagle8231
@flyingeagle8231 Ай бұрын
This guy must grow a couple of tomato plants and thinks he's a large scale farmer.
@teebob21
@teebob21 Ай бұрын
You don't know who Joel Salatin is, do you?
@JohnDavis-tj1bl
@JohnDavis-tj1bl 18 күн бұрын
According to this guys math all the big farmers in the world would be in debt worse than the United States!?? He is waaaay off
@manitobaman5588
@manitobaman5588 Ай бұрын
Homesteads as such do not exist in 2024. Hobby farms do. Even during the settlent period pmany, many people here on the prairies failed in their attempt to establish a successful homestead.
@arra3410
@arra3410 25 күн бұрын
Throw all those calculations in the rubbish bin. Do you need a tractor? Of course you need one. And if you can afford it, get a tlb. Those machines are basic equipment. And get a toolbox.
@joeblow9284
@joeblow9284 24 күн бұрын
Short answer is yes, but it will probably take you 10 years to break even on it. This is a terrible example. This looks at one single variable in a complex equation that does not take into account reality like weather, time, opportunity cost, maintenance, inflation, or taxes. This guy is very shady.
@recycler77
@recycler77 Ай бұрын
Well as a 150ps Tractor/Loader/Skidsteer/Forklift all in one alternative,- for small operations, one should consider this : kzfaq.info/get/bejne/orylhLKTmbDdo5c.htmlsi=Eo9X8czZDPO2uyDg Its got a : - Teleboom(max 8,8meter long xor max load 4,4t(metric) ) , - 3 point hitch (7t(metric) load max , - 1 mechanical 540/1000rpm ~112ps(136ps engine) tested PTO(protected by clutch) , - 1 Front and 4 Back Hydraulic double-acting cycles ~40gal/min at 3045,79psi , ... Its about the same price as medium Tractor's 💸💸💸
@provisionhomestead
@provisionhomestead Ай бұрын
I've never seen one of those before! Looks amazing!
@recycler77
@recycler77 Ай бұрын
@@provisionhomestead Many diary farm's here in Germany use one as replacement, for a Loader/Telehandler and a hay making tractor. Its implement rated pulling force is around 32t(metric). It cant replace expensive pulling tractors. For seeding applications it lacks an iso bus+RTK... system, so a 3rd party iso bus+RTK... system can be added. It is possible to get more front hydraulic cycles as an option. Engine is now a 170ps Deutz, used to be a Chinese one,- years back.
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