Nov 10 2008
How Much to Farm Tractors and Implements Cost?
Alright, so we now know how much money farmers make from whatever they raise and how much it costs us to plant crops. It’s pretty clear that we don’t make a lot of money. Plus, I mentioned that we have huge farm payments each year. One of the reasons why our payments are so high is because we’ve had to purchase machinery and land to do our work. Here’s a breakdown of the tractors and implements that we own and how much they cost. We, obviously, do not have new tractors, combines, balers, and so on. One of our smaller tractors, for example, is a 1949 John Deere B. And, one of the reasons why we cannot afford to buy new is because we’re not making much money. We do alright with what we’ve got, and we have to because there’s no way that we could get a loan for a new tractor due to the economy. I’ll do my best to come up with numbers for new and used equipment so you’ll have a better idea of what things cost. Remember that there are different size tractors and different brands so I’ll try to give you a high and a low, but I’m going to stick with John Deere to make it simpler. For the implements, I’ll do what I know. Also, these prices are base prices, before you add on the accessories.
| NEW JD 5095MH Specialty Utility Tractor—This is like something you would use at a greenhouse. It would be a very light farm tractor that could be used for raking hay. I might use it to haul corn to feed my pigs. It cannot pull a large implement like a planter. |
$51,000 |
| NEW JD 6430 Cab Tractor—This is 95 hp, so comparable to the tractor I used in the example yesterday to plant corn. This would be what we would buy if we were going to buy new (but we can’t afford it). Plus, this one has a cab where ours doesn’t. |
$72,800 |
| NEW JD 8530—275 hp, the largest row-crop tractor JD makes. It has a cab and duals on the front and back. It’s good for farming bottoms and pulling the largest implements made. Basically, you would want this if you were farming thousands of acres. Since it can pull larger equipment, you can plant more rows on each pass. |
$249,000 |
| NEW JD 9230—So you think you need 4WD? This is the smallest 4WD tractor JD makes. It has a cab, duals on the front and back, and is 325 hp. |
$202,000 |
| NEW JD 9570 Combine—This is the smallest model combine. Then, you have to buy a second head to combine soybeans also. This price is for the smallest head also. |
Corn Combine=$247,000 Small Grain Combine=$239,000 Soybean Flex Head (20 feet)=$28,000 |
| NEW JD 610 Chisel Plow—You have to have this to prepare you field. It’s the smallest at 8 feet wide. They also make them 16 feet wide for the guys who farm those huge tracts. |
$4,000 |
| NEW JD 240 Heavy-Duty Coil-Tine Harrow—This is to prepare your fields also. We have both the chisel and the harrow. |
$1,800 |
| NEW JD 637 Folding Disk with 9” Spacing—You need one of these, too. This is the smallest of the JD models. 18 feet wide. |
$30,000 |
| NEW JD 670 Single Offset Disk with 11” Spacing—This is the largest I could find. It has 46 blades and 45 scrapers. It’s 20 feet wide. |
$29,000 |
| NEW JD 2210 Field Cultivator—And again, we use this too. This is the smallest at 20 ½ feet wide. |
$24,000 |
| NEW JD 512 Rigid Disk Ripper—A ripper goes deeper into the soil. It really just depends on your tillage methods and preferences. This is the smallest one at 12 ½ feet wide with 28 blades. |
$31,400 |
| NEW JD 1700 Planter—This one plants 8 rows, which is the most common. |
$25,600 |
| NEW JD 1790 Planter—This is a 24-row planter for those guys with big farms. |
$122,000 |
| NEW JD 1520 Drill—You have to have a drill to plant everything else besides corn. This one has 10-inch spacing and is the smallest. |
$14,800 |
| NEW JD 1520 Drill—This one has 6-inch spacing. It just depends on where in the country you are farming. We can’t put our crops 6 inches apart because the soil won’t handle it. |
$26,800 |
| NEW JD 558 Round Baler—Most farmers with livestock use round balers. These are the ones you see stacked up in the fields. The bales average 1,500 pounds. |
$26,700 |
| NEW JD 338 Square Baler—Sometimes we need to have square bales for our smaller livestock, like sheep and goats. We also use it to bale straw for our pigs and sheep for the winter. |
$21,800 |
| NEW JD 285 Disk Mower—Gotta cut the hay somehow. This one has 8 disks. |
$13,600 |
| NEW JD 620 Conditioner—Some people prefer to use a conditioner. We probably would if we had the money. It conditions the hay as it cuts it. Just makes it a little nicer to rake and bale. |
$23,800 |
Here are some used prices (as many as I could find) for similar equipment. The prices may be less, but, like buying a used car, they usually come with problems.
| I cannot find the price on a rotary hay rake, but you have to have one. Mow, rake, and bale. You can’t bale without one. | ??? |
| USED JD 9650 Combine (9570 above)—A little bigger than the new one. |
$139,500 |
| USED JD 270 Mower (285 above) |
$2,700 |
| USED JD 1293 Corn Head—For the combine. |
$59,500 |
| USED JD 566 Round Baler (558 above) |
$18,450 |
| USED JD 6420 (6430 above)—This is the row-crop tractor. |
$63,500 |
| USED Case IH 5130 (5095 above)—This is the utility tractor. And, unlike the new JD, this one has a cab. |
$25,000 |
| USED 1962 JD 4010—This is just for fun, but this is the one I used in my example yesterday. Ours is diesel and this one is gas. I stumbled onto it as I was looking around. |
$8,800 |
| USED 1990 JD 8760 (8530 above) |
$59,500 |
| USED 1978 336 Square Baler (338 above)—This thing would probably break down the first bale it spit out! |
$4,750 |
| USED JD 893 Bean Head—For the Combine |
$24,000 (It was $28,000 new, so it’s not much more economical to buy the used one. You just as well have one that you know has a warranty and is going to work for the $4,000 more it would cost you.) |
So, maybe this gives you an idea about how much it really costs to purchase all of the tractors and implements that are needed to be a farmer. We can’t really do without any of them because costs to hire custom work have gone up and become impossible and uneconomical to pay. We do some custom baling work for some of the neighbors. They own 20 cows and like to call themselves farmers, but they’re really not. They pretty well just have the cows as a tax write-off. They have 40-hour-a-week jobs and just dabble in cattle. They have everyone else do the work while they sit in their comfortable chairs and wait until it’s time to take them to the salebarn. By the time they pay someone to feed them, they haven’t made any money at all. So, they tell their accountant and the accountant figures it in, and voilà, they don’t owe any taxes this year.
Anyway, all of the guys who custom bale hay talked here and there about a reasonable increase for their rates because the cost of diesel was outrageous. So, I think it was something like $10.50 per bale and $5 or $6 per acre to rake and I’m not sure what mowing was. The average field is around 40 acres, so it cost someone like $800 if they got about a bale an acre, which is typical. They would grumble (not every one of them, though) and say it was too high, but they’re not paying for the fuel. Then, a lot of them turn around and sell the bales for $40 or $50 each. They’re at least doubling their money, getting around $1,600-$2,000 when they sell them. So, they get tax cuts because they can show a loss for sitting on their butts, and they’re actually turning a profit.
However, we have to remember that these people are not really farmers. They claim to be but they are supplementing their farm income with a job, or their job income with a farm. We could sell all of our bales, too, but then we wouldn’t have anything to feed our cattle. Then they would die. Then we really couldn’t make our farm payment. Really, what these people are actually doing is called TAX FRAUD. Someone a long time ago saw that a lot of farmers were not having to pay very much in taxes because they can deduct pretty much all of their expenses and loan payments and they decided, “I’ll get a few cattle and tell the government that I’m a farmer but I had to get a job to supplement my income because farming isn’t cutting it so that way I won’t have to pay any extra taxes on my income.” Quite frankly, that is crap. It’s not fair to us and it’s not fair to you. If you want to be a farmer, be a farmer! If you want to have a job, then go get one! If you want to have a cow to butcher for meat, then buy one and butcher it! Don’t make us look bad because you want to screw the government. Wait, now I have to make it clear that we don’t want to pay taxes any more than the next guy, but everyone’s taxes are going up because of this and similar stuff. Sometimes they sell their cattle for cash and then claim they got less. That’s really tax fraud.
You know, having the best house and the nicest pickup isn’t everything. We know people who buy a new pickup every year and say it’s for the “farm” so they can use it for a tax deduction. Well, I’m here to tell you that 10 measly cows IS NOT A FARM! That’s a hobby. That’s a way to defraud the government. I think the government has really put this country in the poor house as much as the next guy does, but people like this haven’t helped the situation any. If you compound them, that’s a lot of money. We would love to have a newer pickup so that we could do our chores without having to put 2 quarts of oil in every day. Actually, we deserve a new pickup, but people like this are screwing us.
The point is that true farmers with 100 or more head of cattle are barely hanging on because of the costs associated with tractors, farming, supplies, parts, hay, and so on. We don’t need these fly-by-night “farmers” ruining our livelihood. It projects a bad image on us and gives us a bad name. What’s worse is that these people are the ones who usually get top dollar for their cattle at the salebarn. Well, we would get top dollar too if we could hire someone to take care of 10 or 20 cows. Believe me, we would love to have our cows bring top dollar at the market. It would really help us out and give us a little breathing room. We would love to haBut, they don’t, even though they are no worse then the hobbyists’ cattle.
Well, I hope you keep reading. I have so much more to tell you about farming, and the stigmas attached to it, and the jealousy that people have, and the hardships we face every day. It’s a different way of life, but we’re just like everyone else. Actually, we’re probably more down to earth and more appreciative of what we have. We’re definitely more humble and thankful.
Happy Eating, until we meet again!
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