|
| I've always been interested in this as well. The idea that a lot of people seem to have is that land is the most profitable place to put your money. I just don't know what to think. I feel that if you're using your own equipment to farm your own land, unless you are very careful with the sizing and age of that equipment, the equipment may just be the worst possible place to put your money. If you go overboard, your cost per acre may well be much higher than what it would cost to custom hire someone else to do it.
If however, you buy it right, work on it yourself, have some creativity, and run it hard, then there is a decent chance that you could do an operation for a cost that is lower than what you're being paid. If you have a sharp enough pencil to make the difference between cost and return large enough, then it would be possible to make machinery a better investment than land. I don't think that game is for everyone though. You have to be mechanically inclined, creative, have excellent people skills and good leadership and management capabilities so that you can keep all that expensive equipment moving smoothly. You also have to have a knack for finding deals because if you don't buy it right, I would imagine it would be a lot harder to pay it off.
If your custom work leads to rental opportunities, then I would imagine that adds some icing to the cake.
These are opinions from someone who has thought about getting into the custom farming side of things, nothing based on experience. | |
|
Planter width vs planter efficiency scenarios (long)
