Had a great question about how we make purchase decisions and wanted to talk with you about it —
Equipment — for the most part we have a plan. One of my main goals is to find the sweet spot in when to trade. Where is the optimum value reached? Kyle was trading skidsteers every other year. Then he got a quote to trade yearly and found it cost us less per hour to trade once a year. My dad has the same system figured on his baler. It hits his years old/bales made threshold and he trades.
The rest of the equipment isn’t on as stringent of schedule because it takes cash. There are lean years where everything goes into keep it together. Ever changing equipment markets also make finding the optimum hour mark to trade a moving target. But I’m trying to find it anyway.
Land — I wish land sold like regular real estate where it went on the market and we had a chance to ponder it. Or how it used to sell — my grandpa told me about a half section his dad bought. The bank called and offered it to them. He wasn’t sure, thought about it then decided to buy one quarter. The next spring they still hadn’t sold the other quarter of the half so the bank called again and my great grandpa bought that one too.
CAN YOU EVEN IMAGINE?!
The farmland game now is always be ready. See a for sale sign? Call immediately. Even an auction might not make it to auction. If it goes to auction then buckle up.
Is land crazy around you too?
