Why Do Farmers Spend So Much Money On Farm Equipment? (Ep.113)

  Рет қаралды 19,626

aTrippyFarmer

aTrippyFarmer

2 жыл бұрын

Check Out The Merch: farmfocused.com/a-trippy-farmer/
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Mother Nature strikes again to sideline the farm's plans of harvesting any crops with their John Deere combines. A little over an inch of rain is the right amount of rain to create muddy fields with the heavy John Deere harvesting equipment. aTrippyFarmer and his family work together to service all of their equipment that is in-need. A few short days of cutting soybeans is enough for the John Deere drapers to have damaged parts on the cutter bar, which is an easy fix. However, the crew discovers that one of the main conveyors belts has a fairly large hole in it, so they take the head their John Deere dealership for service. After that, Jeff and Andy work together to empty to the two loaded trucks and the grain cart. Once they have finished everything, Andy sits down and talks about why farmers spend so much money on farm equipment, as opposed to buying it once and being done. Thanks for watching!
#Farm #Illinois #Harvest #Fall #FarmingSimulator22
Andy "aTrippyFarmer" Dole is a 6th generation farmer from Central Illinois. On this farm, Andy works alongside his father, Marty, his uncles, Chris and Jeff, and his sister, Katie, to grow corn and soybeans on some of the finest dirt in the world. Andy and his family are deeply rooted in the area, operating a large farm that traces it origins back into the 1800s. Although some tracts did not stand the test of time, Andy and his family still grow corn and soybeans on fields that have been in the family for longer than even the oldest members of the farm have been alive. We do, we have, and we always will take tremendous pride in calling this piece of paradise our home. Andy was a Bronze Tablet graduate of the University of Illinois in the field of Crop Sciences, following the same path as his father and late grandfather.
It would be misleading for Andy to claim that this life is one that came by chance; rather, as a member of two multi-generational farm families, it was simply in his blood. His passion for agriculture traces back to his early youth--some of his fondest, earliest memories being of days spent riding in the combine with his father and grandfather. Although his understanding of the lifestyle was much less complex in the beginning, the love he has for farming, and its industry has only appreciated through time. As this dream blossomed into adulthood, Andy now works relentlessly, and tirelessly, to chase his own dreams and to build a farming operation of his own alongside his family.
We, as a whole operation, are handymen, electricians, mechanics, landscapers, accountants, economists, caretakers, stewards, and, most importantly, farmers, and we take an incredible amount of pride in our work. There is no challenge too overwhelming, no situation too stressful, and no problem too difficult for us to take on, and we want to take you along with us. Welcome to our farm and welcome to our lives. You have the best seat in the house to watch the everyday chaos of farming unfold--we usually only get concerned when things aren't going wrong!
Follow Andy on Social Media for Live Updates:
Twitter: / atrippyfarmer
Facebook: / adolefarms
Instagram: / atrippyfarmer
Twitch: / atrippyfarmer

Пікірлер: 193
@ericjenjohnson
@ericjenjohnson 2 жыл бұрын
Well said! There are so many things the average viewer doesn’t understand about the financial side of things. As usual you did a good job of breaking it all down.
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
I don’t blame them for not understanding… that is what I am here to help with!
@MatthiasSchulenburg
@MatthiasSchulenburg 2 жыл бұрын
Pretty good explanation. I am sure a lot of "city people" have no idea what a mammoth job it is to run a farm. They just see a shiny tractor and automatically think of the farmer being rich.
@b_lumenkraft
@b_lumenkraft 2 жыл бұрын
European here. I sure appreciate your respecting SI, sir. ;)
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Of Course!
@boydanderson8596
@boydanderson8596 2 жыл бұрын
All good points! I think the third point is probably the biggest reason why farmers get new equipment! 😂
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
You know it. They are all their own boss 🤣
@b_lumenkraft
@b_lumenkraft 2 жыл бұрын
When you said they magically disappear, i knew the reason for that. Maybe this helps: Always bring a tupperware container if you are working with screws. ;)
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
You are right... or a magnetic tray!
@b_lumenkraft
@b_lumenkraft 2 жыл бұрын
@@aTrippyFarmer even better! :)
@briancrossno
@briancrossno 2 жыл бұрын
Awesome video as always Andy. Great to see you explaining just how a farm works in the financial category. Thanks for taking the time to do this. So many people just don't understand what goes on in farming and just assume they do. I appreciate you and your family and all farmer's for what they do. Because so many people would never do it period. Keep them videos coming and stay safe my friend 😎🌞👍
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Glad you enjoyed it!!
@jerrydewitt8585
@jerrydewitt8585 2 жыл бұрын
Fuelling up issues remedy, use two pump an hoses at same time. Be amazed how fast it goes. There is room in tank filler pipe.
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
That’s a great idea. We oughta put the old pump back to use!
@lanceswindell2859
@lanceswindell2859 2 жыл бұрын
Nice explanation. Farmers get some hating comments from those who don't understand or just plain jealous. It doesn't come without hard work on one end or the other! There are different investment strategies for sure.
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
I think most people just misunderstand the financial nature of farming. There is a lot of money to be made, but there are also big bills to go along with it.
@lanceswindell2859
@lanceswindell2859 2 жыл бұрын
You gotta spend money to make money!🙂
@thegracedfarm5290
@thegracedfarm5290 2 жыл бұрын
Great Video!!! When you talked about reliability of equipment I remembered a quote from an ESPN analyst, "The best ability is Availability"
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Well said!
@bradylarson3532
@bradylarson3532 2 жыл бұрын
Very good explanation. Love the part that no one truly knows each individual farms financial background. Great work!
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Usually only their accountant and god know that information!
@seajeepstar7516
@seajeepstar7516 2 жыл бұрын
I loved the edited montage. Very good. Thanks for the information on the business of farming. Theres so much more than growing plants.
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Thank you! Farmers have to wear many different hats.
@peteparker7396
@peteparker7396 2 жыл бұрын
Simple answer good sir. “Cool ain’t cheap, and cheap ain’t cool!” Hence, cool kids buy green iron. The cool kids only use freedom units to measure as well 😎 I will take umbrage with you Andy on one subject. There is a place more expensive then a hospital visit. Caterpillar. 🤦🏼‍♂️ ridiculously expensive.
@rongrace479
@rongrace479 2 жыл бұрын
That was a good explanation good job of breaking it down
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
👍👍👍
@benburns5995
@benburns5995 2 жыл бұрын
Nice explanation of how all the different farms operate and all the different possibilities. With farming you have to be able to wear many hats in order to survive and grow.
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Very true. It is a complicated topic. Thanks for watching!
2 жыл бұрын
"Freedom Units" hahah WTF :D :D
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
That is my favorite name for the standard system 😎
@alpabst4776
@alpabst4776 2 жыл бұрын
I got to admit you provided a very well explanation. As you know many many factors go into fixed asset purchase/or leasing. very well put. I enjoy your videos keep up the great job.
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Thanks, Al. Leasing is another thing that I didn't mention. There are so many different ways to manage your farm.
@jasonh.8362
@jasonh.8362 2 жыл бұрын
Excellent information!
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Glad it was helpful!
@toddhenning8304
@toddhenning8304 2 жыл бұрын
👍🙂 Thanks for the equipment and financial tutorial.
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
You bet!
@davidcoe4517
@davidcoe4517 2 жыл бұрын
Really enjoyed your explanation for new equipment purchases
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
I am glad it was helpful. It is a complicated topic.
@Marshall_Weber
@Marshall_Weber 2 жыл бұрын
Awesome Video and Much Love as Always!!
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
😎👍👌
@corinilfarms8854
@corinilfarms8854 2 жыл бұрын
Wealth......making it is easy, keeping it is difficult, growing it is well planned. Thanks for the video, hope it dries out soon!
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Strategy and luck are two key components! Thanks for watching.
@mikeaiken4330
@mikeaiken4330 2 жыл бұрын
Great explanation and very interesting!
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Glad you enjoyed!!
@spideybrent
@spideybrent 2 жыл бұрын
Hello from Saskatchewan, Canada
@brandonm6052
@brandonm6052 2 жыл бұрын
I think the episodes where you’ve tried to describe things you’ve done a great job articulating it. Just enough detail but not so much some people can’t follow it👍🏼👍🏼
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Cool, thanks! I try not to overwhelm people. Some probably run away the minute I start talking haha
@mikenye8551
@mikenye8551 2 жыл бұрын
Well said.
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
😎
@alamoarabianhorseassociati6173
@alamoarabianhorseassociati6173 2 жыл бұрын
Great explanation on equipment costs.
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
👍👍👍
@darrelllowery8854
@darrelllowery8854 2 жыл бұрын
An old man told me over 50 years ago that dealers can give you a tractor for free but if it is broken down when you need it then he has hurt not helped you.
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
That is such a great point.
@georgemccain2505
@georgemccain2505 2 жыл бұрын
Good video Andy ,enjoyed it!
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Thanks 👍
@dustinlowry9075
@dustinlowry9075 2 жыл бұрын
Well Said. Your 100% Right👍 Thank you Sir Great video
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Thanks, Dustin.
@stanleywhite2335
@stanleywhite2335 2 жыл бұрын
I trade in my semi every 3-4 years for the exact same reasons especially with these newer regen engines. It drives my trucking buddies crazy 🤪
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
I bet it does! The boss wants to get a brand new one, but I feel like that is a waste of money. Thanks for the comment!
@rogerdobbins4502
@rogerdobbins4502 2 жыл бұрын
You head the nail on the head. Good education.
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Thanks, Roger!
@alevasseur14
@alevasseur14 2 жыл бұрын
Really glad I stumbled across your channel! Can you link any videos where you explain exactly what some of the equipment you use does? I've been catching up on a lot of your planting/harvesting videos and keep wondering how your equipment works and why you use one piece instead of another. Thank you for your time in putting these videos together!
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
It is difficult for me to link videos from my phone. If you go back to September or October of 2020, I have a video that is an in-depth tour of our harvesting/tillage equipment. Thanks for watching!
@alevasseur
@alevasseur 2 жыл бұрын
@@aTrippyFarmer appreciate the response! Thanks for pointing me in the right direction for information on equipment. I’ve always loved equipment so your vids are really enjoyable. Good luck this season! P.S. I do get to drive a JD 4066R quite a bit at work, I’d love to run some of the bigger equipment someday!
@bambam6053
@bambam6053 2 жыл бұрын
Great explanation
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Glad you think so!
@steveunholzer2056
@steveunholzer2056 2 жыл бұрын
very well spoken sir!..... love the explanations, even tho i did have a grasp on the idea already. I am curious more about the land question, not to get too personal, but on your operation, do you own a lot? some? little land? and how does that drive decisions
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
That is a fair question. My family owns a large majority of the ground we farm. It gives us some flexibility in management decisions. Thanks for watching!
@billjohnson2462
@billjohnson2462 2 жыл бұрын
@@aTrippyFarmer Referring to taxes: If a person buys property, they can only right off the interest on the loan. It's great to buy land if possible but very costly. If a person chooses to lease property, 100% of the cost the lease is a business expense and can be deducted on taxes. That being said, if the owner decides to sell the property or lease it to someone else....you're screwed. My grandpa always advocated owning land My dad always preached "control land...don't own it" As you said, EVERY farm / farmer is different.
@TheGreenerSide09
@TheGreenerSide09 2 жыл бұрын
great video bro i like how you teach and break stuff dowm we watch you from vegas
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Awesome thank you!
@mrbunny8050
@mrbunny8050 2 жыл бұрын
Hmmm...so thats rain looks like. Can't remember the last time we saw much more than a sidewalk wetter in central Iowa. Wishing you successful harvest.
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
We've gotten so much rain this growing season that I would've split them all with you. We both would have massive crops!
@douglaskoonce2097
@douglaskoonce2097 2 жыл бұрын
Great video! Your subscribers are growing quickly!! Congrats man!!
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Thanks, Douglas!
@jeffmcinnis9443
@jeffmcinnis9443 2 жыл бұрын
You can go from good to broke in just one weather event been there got my Tshirt
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
That’s no joke…. Just wait for the next video and you’ll think broke. Thanks for the support!
@mikecrockett3669
@mikecrockett3669 2 жыл бұрын
Excellent job! People see big revenue and not big expenses!
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Thanks, Mike!
@wry569
@wry569 2 жыл бұрын
Well said. Great explanations. Thank you for doing this. Who is Katy that drives the combine?
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
She is my older sister!
@Chadfarmingandcranes
@Chadfarmingandcranes 2 жыл бұрын
I was always told you can either make repairs or make payments. Repairs also cost you time where as payments are usually higher but predictable. Equipment never breaks down when it's sitting in the shed, always when you are using it and need it so good reliable equipment is a necessity.
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Great point! It really is a moving target. Even the new stuff can cause down time!
@dantomlinson4407
@dantomlinson4407 2 жыл бұрын
Thank you
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Welcome!
@randyedwards5744
@randyedwards5744 2 жыл бұрын
Great video and explanation Andy. Regarding your trucks are you sure you have Ultra Shifts, and not auto shifts?
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
I was fairly certain they were Ultra Shifts.
@va3kbc
@va3kbc 2 жыл бұрын
Amen brother!!!!
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
👍👍👍
@TheJimmybud
@TheJimmybud 2 жыл бұрын
Farming is another thing in life that , bigger isn't always better . My Grandpa's 360 acres has been his free and clear since the 60's and they never bought new equipt. , just low hour clean equipt. and just cash rented as they see fit . He lived a very comfortable life after selling the dairy cows .
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
I think there is a lot of truth to your statement. I would apply it more-so to those whom pay high dollar rents to make virtually no money. Life is about balance, and everyone's perfect is slightly different.
@farmallboy884
@farmallboy884 2 жыл бұрын
New equipment can make your life easier
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
It sure has gotten expensive!!
@danlowery3235
@danlowery3235 2 жыл бұрын
Andy, Have you thought about teaching? You seem to give very good explanations to complicated questions.
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Teaching is for the patient 😁
@brandonvantorre9907
@brandonvantorre9907 2 жыл бұрын
Great video. Hope it makes some people understand. Farming is basically a casino ride. I don’t gamble but I do farm and my dad has always said it’s an up and down ride. Roll with it and try to make good decisions 👍
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
It can be feast and famine at times. It is important to keep that in mind during your good years, so you can be prepared for the bad ones.
@bobnistler
@bobnistler 2 жыл бұрын
Must be nice to just let the engine compartment ladder on a new machine bounce until it stops.
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
That engine will be rebuilt long before that ladder is even close to an issue 😂
@jayhuff4674
@jayhuff4674 2 жыл бұрын
How much of your harvest is done? I live in Oklahoma our corn is done except for a bit of late com. One person started picking and stripping cotton but for the the most part the cotton hasn't even been defeated.
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
We have picked very little of our corn and are still a few good days out from halfway done on soybeans.
@johnkolbjr8375
@johnkolbjr8375 2 жыл бұрын
Good job Andy. Another reason is technology. Better Auto Trac etc
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Great points. I will say that major improvements from year to year are not common. They sprinkle in the new amenities frequently, yet save the big stuff for every few years.
@johnkolbjr8375
@johnkolbjr8375 2 жыл бұрын
@@aTrippyFarmer true but if it is a major upgrade year then more will likely upgrade. Look at the new 7R/8R/9R tractors with integrated gps dome now
@mudchandler9912
@mudchandler9912 2 жыл бұрын
You are really cool!
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
😎
@mudchandler9912
@mudchandler9912 2 жыл бұрын
Thats what im talkn bout!
@badenielsen
@badenielsen 2 жыл бұрын
Im from Europe, but since i watch a lot of Murican youtubers I've gotten used to fredom units.
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
It won't make much sense if you've used the metric system, which is much better!
@ronkeking97
@ronkeking97 2 жыл бұрын
There is a 4 reason for upgrading. The neighbour bought something new. I remember when my father started our custom business, me and my brother was on him early for buying the new Fusion balers, but he did not see any reason to. 2 months lather our neighbour bought one, my father ordered 2 the next week haha. Not a huge reason, but we joke with him about it.
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Funny how that works...good point!!
@787Earl
@787Earl 2 жыл бұрын
my family has a 6 gen farm in Alberta, Canada, equipment must be reliable 5 years old for tractors and combines max
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
I could see that being even more important in Canada. I would guess that service can be a long drive away at times.
@rebbroker8231
@rebbroker8231 2 жыл бұрын
Ah hell all rich here!!! Just marry a loaded lady and it’s new equipment every year! 😜
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Now that is a good strategy!!!
@CharlesLScofieldJr
@CharlesLScofieldJr 2 жыл бұрын
On average how many bushels of corn or soybeans would it take to pay for a combine? I'm thinking it would take multiple years of harvests to pay one off. Or is it dependent on the number of hours of use? I would assume at some point it would be better to trade one in for a new one before maintenance costs make one too expensive to hang on to. You mentioned leasing equipment. I used to work for a major automotive parts manufacturer in their IT department. They leased hardware i.e. Unix based servers, storage tape libraries, and network storage equipment. They would only keep them for maybe three or four years before turning them in for newer faster equipment. They did that because they were able to take the entire lease cost off their corporate taxes and the maintenance costs of failed equipment while on the lease were covered under the lease costs. They never had to depreciate the equipment over time.
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Farm economics are a different beast than many traditional businesses. To start, you can definitely lease equipment. Many of these leases are actually pretty good deals, and they usually have a buy-out option after the lease period. Farmers, though, traditionally like to own their equipment. I would say it is a pride thing, but they also don’t want someone else being the true owner of the machine required for their livelihood. More and more farms are moving to leasing, especially large farms, due to the lack of equity required to add equipment. It allows them to maintain a fleet of new equipment, and they can get rid of it easily when they are done, if they want to. That being said, for east math, a brand new John Deere S780 combine like we had this previous fall is a little over $500,000 out the door. Of course, we trade equipment in for new equipment, so we had equity in an old machine that went towards the upgrade cost. I’m the last 2 years, a bushel of corn has been anywhere from $4-$8. At $4, it takes 125,000 bushels. At $8, it takes 62,500 bushels. A new combine is going to depreciate $60-$70k in the first year, which is around what the lease would cost. However, depreciation is a curve, and leasing is linear. You’re stuck with a $65,000 lease payment for 3-5 years, but the person that owns their combine is looking at 65k>55k>40k in continued depreciation. Farmers can also deduct an entire business purchase on their taxes-it is Section 179. Many farmers will utilize this allowance to upgrade equipment whilst reducing their tax burden, which makes leasing less competitive to farmers, unlike personal cars, hardware, etc., where the deductibility is limited. There is a lot that goes into it. Our farm consists of millions of dollars worth of equipment, but that wasn’t purchased in one day. Years of upgrading and investing has landed us where we are today, but we would not want to write the totality of that check in one sitting.
@CharlesLScofieldJr
@CharlesLScofieldJr 2 жыл бұрын
@@aTrippyFarmer Thanks for the explation of how modern farming works. My only exposure to farming was when I was a kid age 5 - 6 years old. We used to visit my uncles farm near Grinnell, Iowa. I'm 69 now but I guess the kid in me still loves tractors. I think my uncle used IH equipment though because all I remember was red and white tractors.
@danott1423
@danott1423 2 жыл бұрын
Great explanations on farming. Hope you can get out to the fields soon.
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Thanks, Dan. The rain delay was short!
@kennethjohannsen4091
@kennethjohannsen4091 2 жыл бұрын
excellent explanation, I ranch and this is as simple as you can make it. I know you missed some points, but to explain it in detail. You would be 10 years older and the average human only retains 10% of what you tell them.
@u.s.a.satire5982
@u.s.a.satire5982 2 жыл бұрын
Maybe you can tell me how do cattle ranchers make money? You buy the cow at auction,feed them,buy all equipment including building,tractors,hay,trucks,trailor,land to use, vet bills, lose of cattle,taxes,auction %,labour and only sell the cow for 800.Thanks
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
You are certainly right... it is a lengthy topic!
@kennethjohannsen4091
@kennethjohannsen4091 2 жыл бұрын
@@u.s.a.satire5982 Watch greg judy on u-tube. Rent dont buy. We are a cow/calf operation. raise90% of our feed. All of my tractors are 30 years or older, because we only put 100-120 hours a year on them. I gave up on hiring help, cost too much to train. I was given nothing. My wife and I have done all of the heavy lifting. It is a process, but can be done.
@TriDaddy
@TriDaddy 2 жыл бұрын
Hey Andy, I'm a new-ish viewer of a half year. GREAT CONTENT! Help me to understand "aTrippyFarmer" Is Trippy your last name?
@andrew3491
@andrew3491 2 жыл бұрын
Just wondering if you added all one's equipment costs. What would the range of cost per acre be for individual farms in America?
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
It depends on the farm. I commonly hear somewhere between $75-125 per acre, which includes repairs, oil, and lube. Some farmers keep a much closer eye on their equipment costs and others just spend the money as they please. It just depends on the operation!
@andrew3491
@andrew3491 2 жыл бұрын
@@aTrippyFarmer Thanks for the feedback! Keep on being awesome. America needs farmers.
@lukesullivan4004
@lukesullivan4004 2 жыл бұрын
So a lot of farmers didn’t get to sell their grain with the smokin prices therefore they did not have much money, but since they had a bad year this year, would the insurance money that they got off of this years crop help the, to buy new equipment? This topic is quite misunderstood a lot, thanks for pointing it out.
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Farmers do not get rich off of insurance. The only time where insurance pays extremely well is if there is a nationwide crop issue, like the drought of 2012. This caused the prices to rise another 30% above where they are now, and the insurance paid very well. Farmers faced with a drought this year are still going to make money, but, since the drought was localized to a small area, the price did not substantially increase.
@zanewinters4912
@zanewinters4912 2 жыл бұрын
I remember watching a family in Casey IL that everyone though was doing good owned the elevator in town and went bankrupt you just never know what is actually going on
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
I know that operation! They have a pretty impressive fleet of equipment now, possibly even an X9.
@louispaparella5766
@louispaparella5766 2 жыл бұрын
John D Rockefeller said bankruptcy was just another business tool
@offthebeatenpath5326
@offthebeatenpath5326 2 жыл бұрын
you have prb heard this a million times but how come you dont work in the tractor shed on crappy days or just when ever
@robertrevering5699
@robertrevering5699 2 жыл бұрын
I like number 3 best, just because they want to! Your farm is your farm, do what is best for you, as long as it’s legal. I don’t give a rats butt if you don’t pay any income taxes at all, when you buy that new equipment your providing lots of good jobs!!
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Legality is key! I would speculate that this John Deere equipment supports many families.
@jayhuff4674
@jayhuff4674 2 жыл бұрын
I tell people all the time nice equipment doesn't mean rich.
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Rich in paint!
@kevincasady8992
@kevincasady8992 2 жыл бұрын
In the KZfaq world people only see the here and now. A farmers fleet of equipment is years and years of trading up and upgrading.
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Kevin, that extends beyond all social media. It is a construct of human nature for many.
@PrestigeWorldWidePWW
@PrestigeWorldWidePWW 2 жыл бұрын
Good video though. Thanks
@PrestigeWorldWidePWW
@PrestigeWorldWidePWW 2 жыл бұрын
Great job explaining
@jackofall2305
@jackofall2305 2 жыл бұрын
Remember you always get to ride by the haters in nice shiny iron. Wish people would feel happy for other people doing well. You getting a new tractor effects my life by zero so why should i feel some kind of way about it. Good for you guys, get what you need to make that money
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
They wouldn't be so upset if it was red equipment!
@tommypittman3810
@tommypittman3810 2 жыл бұрын
Andy I grew up on a small farm I no how equipment is a high valve item to the people making BS commits about farmers r rich need to go out an farm for a yr an find out what the hell it is about so quit given Andy a hard time shut the hell from a old guy that grew up on the farm so when u go to the grocery store clothing store etc thank a farmer keep up the work an keep farming I no u will u have a ally
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Thanks for the support!
@luisnunes7933
@luisnunes7933 2 жыл бұрын
What does justify your animosity toward the International Sistem of Units?!
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
It was just a joke. I am well-versed in the metric system from years of schooling. It is intuitive and easy to learn, unlike our system here!
@luisnunes7933
@luisnunes7933 2 жыл бұрын
@@aTrippyFarmer Understood! I am eager to watch the new Green Beast doing heavy tillage. God bless.
@frankfee7173
@frankfee7173 2 жыл бұрын
👌👌
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
👍👍👍
@PrestigeWorldWidePWW
@PrestigeWorldWidePWW 2 жыл бұрын
What is your opinion on not spending the money on equipment and instead paying the taxes on your earnings and use the cash left over after taxes to buy more farmland?
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
For one, you’re just passing the buck on your equipment expense. You can take small bites every year versus taking one big bite every few years. I do see what you’re saying, and I agree somewhat, but it comes down to taxes. If you milk your equipment for every penny it is worth and take all that money as personal income, you’re going to be in the higher tax brackets while not properly accounting for the true cost of your operation. You’d be paying the government money that really should be reinvested in your operation, and it would also be at a higher percentage tax. Like I said, it is about balance. Why not take your fair share of income, pay the taxes, finance the ground at incredibly low interest rates while also managing your farm balance sheet appropriately. I think ground is a great long-term investment, but I also think there are other opportunities which can overshadow farm ground at these ridiculously high prices. If you have a great farm nearby, it would make sense to buy it. If there is a 500 acre tract going for $15,000 at auction 30 miles away, it would be silly to buy it unless you have a lot of money to spend. I really do appreciate your comment, and I think a lot of operations fail to actually build any true long-term assets because of their focus on paint. Thanks for watching!
@PrestigeWorldWidePWW
@PrestigeWorldWidePWW 2 жыл бұрын
@@aTrippyFarmer what are other ways of growing income that could be a better return than saying buying more farm ground? What would Andy do?
@PrestigeWorldWidePWW
@PrestigeWorldWidePWW 2 жыл бұрын
Which field helps with these questions? Bankers? Accountants? Or the Tax specialist?
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Another good question. I think it entirely depends on your risk tolerance and goals. Farm ground pencils better if you are operating on the ground yourself. I would rather buy ground than pay $500+/acre rent. That being said, I think diversity is key for long-term investments. Residential property investments have a slightly higher return on investment than ground, and it is also fully deductible over a long period. Equities are a higher-risk, higher-reward options; however, they can really be feast or famine. Some blue chip stocks have appreciated over 100% in the last few years. This is not guaranteed by any means, so tread lightly. One of the biggest factors in this decision should be interest rates. At current levels, I would be buying ground that is fairly priced and nearby. I would finance as much of the value as I am comfortable with. As opposed to paying it off with extra income, I would invest whatever extra money you have into a diversified portfolio of reliable stocks. This is a riskier strategy, but I believe it is a risk worth taking. If you have other business opportunities, I would consider taking them, so long as you have concrete numbers to work with that indicate performance. Many farmers fail to diversify, and it usually doesn’t hurt them. Bankers like to see diversity on a balance sheet. As for aiding in these decisions, I think a great accountant is invaluable. Secondarily, I would accumulate a network of quality individuals/friends to bounce ideas off of, because that is invaluable. At the end of the day, a lot of it boils down to luck.
@steveunholzer2056
@steveunholzer2056 2 жыл бұрын
no reason rain days can't be somewhat productive as well
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
👍👍👍
@tomharrington1393
@tomharrington1393 2 жыл бұрын
👏👏👏👍
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
👍👍👍
@johnday4368
@johnday4368 2 жыл бұрын
Good video, but some camera work is too jerky and choppy
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Thanks for the feedback, John!
@williamvanderven4672
@williamvanderven4672 2 жыл бұрын
freedom units. you do realize your dollar is metric 10 cents is a dime,10 dimes is a dollar and so on money is a measurement.
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
And with those dollars, we buy things buy the foot, which is 12 inches. The dollar still doesn’t exactly apply to the metric system. Even though 1000 dollars is a thousand, it would be a “kilodollar” in metric. 1,000,000 dollars would be a “megadollar,” but we call it a million. I love the metric system-it is incredibly well thought out and intuitive. I just have to work with our measurements here. Thanks for watching.
@williamvanderven4672
@williamvanderven4672 2 жыл бұрын
@@aTrippyFarmer In the 1700s you used to use the English pound.
@williamvanderven4672
@williamvanderven4672 2 жыл бұрын
I'm 52 I was doing maintenance on equipment when I was 10 everything worked till it was paid for and then some except the stupid bailer that thing was a piece of s@#t. Can't keep up to technology these days can't even fix my car anymore.
@Daveco82
@Daveco82 2 жыл бұрын
Busch Light or Hamm's for you farmers?
@PrestigeWorldWidePWW
@PrestigeWorldWidePWW 2 жыл бұрын
Busch
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
It depends on how good the crop is!
@wilsonandrade6246
@wilsonandrade6246 2 жыл бұрын
✌️🇧🇷✌️
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
👌👌👌
@baxtiyorlatepov4368
@baxtiyorlatepov4368 2 жыл бұрын
Hello🙋🙋🙋🙋🙋👍
@MoFire312
@MoFire312 2 жыл бұрын
How comes you guys don't own a sprayer? Custom applicators just cheaper?
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Custom application pencils very well at our price point. There is probably some money to be saved, and it is something to look at in the future. Right now, it is a good fit for the farm. Thanks for the question!
@billjohnson2462
@billjohnson2462 2 жыл бұрын
@@aTrippyFarmer There is also very big risk with spraying. (both personal and environmental) You can't put a price on that risk but it's very real. As long as I can work with my custom applicator and he / she responds when I want them to...I think custom is a no-brainer.
@redclover51
@redclover51 2 жыл бұрын
Keeping factories running with new equipment purchases means jobs which equates to much more true government revenue .
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Everyone wins!!!
@louispaparella5766
@louispaparella5766 2 жыл бұрын
Farmers/ranchers are usually land rich and cash poor
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
Very true! This is something that many people do not realize, as the ground has been accumulated over long periods of time. This fact alone is why some of the current tax proposals in the United States are scary.
@louispaparella5766
@louispaparella5766 2 жыл бұрын
@@aTrippyFarmer votes have consequences! City folk must be educated!!!
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
@@louispaparella5766 I agree. I think all of these more liberal tax proposals sound great on paper, especially for those struggling financially, but, at the end of the day, no one is as good at over-promising and under-delivering as the federal government.
@louispaparella5766
@louispaparella5766 2 жыл бұрын
@@aTrippyFarmer you learn Grasshopper!
@baxtiyorlatepov4368
@baxtiyorlatepov4368 2 жыл бұрын
Is there a job in the company😢😢😢😢😢😢😢😢😢😢😢😢😢😢😢😢😢😢😢🙏
@brianpayne8931
@brianpayne8931 2 жыл бұрын
Comment
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
👍
@u.s.a.satire5982
@u.s.a.satire5982 2 жыл бұрын
How come nobody talks about how much money the tax payers pay farmers? What to grow, Not to grow, How much to grow,Product to use or not use,Market help Etc..
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
We can argue about government subsidies all day long. They exist for a reason. I do think that a majority of farmers would be more than happy to get rid of them. They create an artificially balanced playing field for farms all across the country, regardless of quality, climate, and cost. This incentivizes people to plant crops where they aren't a safe bet. Comparatively, we can produce successful crops almost every year.
@u.s.a.satire5982
@u.s.a.satire5982 2 жыл бұрын
@@aTrippyFarmer Hi Didn't say they where bad. Just wanted to see whole picture how modern farmers have to use all means to make it these days. While the government hands over billions to other countries for nothing. Thank's
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
@@u.s.a.satire5982 I was just offering my opinion! Subsidies are rarely just direct payments to farmers. The last round of “direct” money was during the trump presidency with the “trade war.” I think it was somewhat fair given that he tanked the soybean market about 30%. They are very controversial, and I think people on both sides fail to stay objective.
@alanpeters9241
@alanpeters9241 2 жыл бұрын
If you're friends with Ron i feel sorry for you
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
I think we are friends… haven’t signed the contract yet so I can still back out!
@jackbean1166
@jackbean1166 2 жыл бұрын
The blue collar worker has no write offs and works on a minim wage, you sound like a winger to me.
@aTrippyFarmer
@aTrippyFarmer 2 жыл бұрын
The blue collar worker has a variety of tax deductions available to them. They are also an employee of someone else’s business, so why would they get to deduct that businesses operational expenses? They only bare the responsibility of completing their task efficiently and safely. Your argument misses the point of taxes completely.
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