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What is your equipment replacement strategy?

Curious to learn what type of equipment strategy farmers have when it comes to time to replace equipment. Chime in on the poll below and we'll share the results in an upcoming issue of Successful Farming magazine.

 

Thanks!

 

Laurie Bedord

Deputy Machinery Editor

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4 Replies
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Advisor

Re: What is your equipment replacement strategy?

all the choices apply to me. does that mean i don't really have a strategy?

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Veteran Advisor

Re: What is your equipment replacement strategy?

I checked the third one which means I am really in the forth category!

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Re: What is your equipment replacement strategy?

That's an excellent question. The path you choose – new, not so new, leasing/renting, sharing or custom hiring or a combination of all of the above - depends on many factors and based on your needs, there are good arguments for each path or a combination of paths. 


When it comes to investing in equipment, it’s not a one-size-fits-all approach. Each operation has its own unique needs and aspirations. Yet, one key point rings true for all operations. . .Making sure the cost per acre or cost per hour is in line with the machinery investment itself.

 

Here's what Kevin Dhuyvetter at Kansas State had to say about the topic:

“Although the investment required for machinery and equipment can be quite high, it is important for producers to focus on machinery cost per acre rather than total investment, as per-acre cost is the relevant measure,” says Kevin Dhuyvetter., Kansas State University “One of the ways producers can manage machinery costs is through careful analysis of machinery ownership (i.e. buy versus lease or rent) and the adoption of machinery-related technologies.”


Farmers should base machinery decisions on projected net cost per acre and not just the sticker price. In some cases, a machine with the highest initial cost could prove to have the least cost per acre when annual usage, resale value, and the value of timely operations are factored in.

 



Senior Contributor

Re: What is your equipment replacement strategy?

Laurie,

I'm keeping mine forever because I figure I'llquite farming in 4-6 years.  If something breaks and is not economically repairable before then, I'll consider custom farming that operation.

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