Episode Details

Introduction

• Thank you for listening
• Farm4Profit episode vs Farm4Fun Episode
• Thank you again for suggesting topics for us to talk about on the podcast and keep them coming.  Send those to farm4profitllc@gmail.com or find us all over social media.
• We greatly appreciate your help in growing our audience.
• The listener review today is brought to you by BW Fusion. They are focused on bringing innovative Fertility, Nutritional and Technology to the Ag marketplace.  They combine their best-in-class products along with the 365 soil and tissue program to provide growers the tools necessary to address limiting factors in real time.  Truly your reviews is how we monitor the market place in real time. The Original BTO, 08/10/2021             Great listen for all things agriculture.

Tanner, Corey, and David make a great team and do a great job of integrating a variety of topics into their podcast. If you’re passionate about agriculture you’ll enjoy their show.

What’s Working in AG – Brandt – Hans

Brandt.ca

Estesperformanceconcaves.com

Main topic – Making Equipment Choices – Topic suggested by Listener Andrew Duff from NE Iowa

Buying new vs repairing and upgrading old vs leasing vs custom hire

• Guest – TJ Masker – TractorZoom - @AgTechTed
  • T.J. Masker - Senior Product Manager on the Product Team at TractorZoom helping them build farmer focused solutions. He graduated from Iowa State with a degree in Agricultural Business. For the past 10 years of his career he has been focused on helping farmers make more profitable decisions with data. Most recently, TJ was on the Product Team at Granular helping build Granular Insights and the data analysis tools utilized by farmers across the United States and Canada. Today he is here to help us prepared to make good equipment decisions.
• Where do we start?
  • You need to understand you goals and needs of the farm obviously.
    • We can’t go off just buying what the salesman has to offer.
    • How do we do this?
    • Why is this important?
      • Key qualities, skills, or information necessary?
  • Force yourself to not compare to the neighbors
• We’re going to try and give broad advice here, but for the sake of a good starting space let’s talk combines. One of the highest value pieces of equipment
  • TJ wrote an article for his blog about John Deere S670 Combines that we think will be a good jumping off point.  Let’s state by talking trading combines, what do we need to consider?
  • https://agtechted.substack.com/p/b9de6d65-7c73-469e-9ace-3448dc969ff7
    • Usage
      • How long will you keep it? Years?
      • How many hours per year?
    • Current Market Value
      • How do we come up with a value?
        • Auction vs private sales vs trade
    • Interest Expense
      • What rates are you being offered?
    • Expected Repairs
      • ISU 
    • Fuel Expense
      • Does your upgrade provide fuel efficiency?
      • “Uh Oh” DEF
    • Actual Depreciation
      • More on newer & lower hour’d machines
• That was trading to own as an option.  What if we wanted to look at leasing equipment?
  • A lot of the same considerations apply……
    • Budget
    • Use
      • How many hours? Will you charge by the hour?
      • Run it and roll before replacing tires etc….
    • Interest rate, lease terms, fees
      • Are you limited by hours?  What does it cost if you go over or don’t use them?
      • Is the residual or buyout going to be more than the machine is worth in the end or will you have the opportunity at equity?
      • Does it come with warranty – how extensive?
    • Ta