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Consider rebuilding old equipment vs. buying the latest model
 

55 Years And Counting From The Tractor Seat

By Bill Whitman

 

 For the last several years I have watched the price of new equipment reach numbers that I can’t fathom. These numbers mean that a significant cost is required for the production of our crops. That cost reduces the amount of money that eventually reaches our bank accounts. 

I want to suggest that some, if not all of our equipment has a viable option that will reduce the equipment costs by a half or more. Consider purchasing used equipment with the intention of rebuilding the equipment from top to bottom. If you put the rebuild expense into your anticipated cost for the piece of equipment “field ready,” you may find an effective and efficient way to reduce one cost of production.

Let’s focus on the two most important pieces of equipment in our inventories, the planter and harvester.  Regardless of the brand of planter you prefer, almost every major manufacturer and short line equipment manufacturer has update kits available to bring your planter into the modern age. Yes, there is a cost, not a cheap cost but one that is well below the cost of purchasing new. The same is true with combines. 

I suggest that there are collateral advantages to this concept as well. First by rebuilding the equipment we gain an intimate knowledge of the equipment. By working through the upgrades, we are learning how the equipment operates in a way that should help us avoid expensive service calls for simple repairs during the season. I also wonder if another advantage is that we have the benefit from the equipment experience of prior years. I remember several years ago a major manufacturer changed the knotters on their small square baler. The first couple of years it was a nightmare for both the buyers and the dealer as they figured out the problems. I might add, the prior year’s models had an excellent track record and had performed well for decades. I know several farmers who chose to rebuild their older models after watching neighbors struggle with their new machine.

From my first days in Vo-Ag in high school, our instructor, Ray Noecker, stressed that we needed to understand what work was being done by professionals, so we aren’t taken advantage of. I can remember any number of times when that advice has come true. 

I also believe that rebuilding our tractors, particularly tractor models with a history of solid service has value. How many of us have experienced or know of people who have experienced significant equipment failures of new equipment and equipment built in the last 15 years. At the same time, I’ll bet we all know of tractors that are still going strong that are 30, 40, even 50 years old. We have a 1975 John Deere 4430 that has been redone (engine, transmission, and interior) for a cost of less than $30,000 and has been updated with guidance and cameras. Find a tractor comparable, new for less than $120,000 new, then consider the life expectancy you can expect compared to the tractors produced today. 

It goes without saying that we have had the benefit of good crop prices over the past several years that allowed us to enjoy having many of our repairs done by professionals. Unfortunately, this season is a wakeup call for many due to tight margins from lower crop prices. To me it is a reminder that for the farm to succeed year after year, the basics of equipment management will give you latitude that new equipment don’t have. 

Even if you are from the school of believing that cutting edge planting and harvesting is essential, think of all the other equipment that this concept can affect your bottom line with. Grain hauling, sprayers, tillage, property maintenance, equipment also can benefit from the concept of rebuilding. 

IndianaAg@bluemarble.net

7/30/2024