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Brazilton KS | Where is the reality of the situation, though? Is it ever really realistic to think that building a grain bin or shop or whatever other facility or buying high dollar machinery (assuming it is bought retail style rather then restricing purchases to below market opportunities) make sense if you do not use it long enough to get the capital expenditure far enough over the hill to actually start showing a profit over money/depreciation cost? I've been to countless auctions over the years where there were hundreds of thousands or even millions) of dollars worth of machinery which has not been utilized nearly enough to recover it's depreciation. The Diamond Ring Farms auction early last spring is a massive example, but there have been similar ones locally on smaller scales. I've seen most of an equipment line be replaced one or two years before it was auctioned off. It always baffles me...is it evidence of some sudden change of direction, or is there some logical way to arrive at that decision?
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"Long run" and the life of an operation
