I noticed.........

Donald Lehman · May 2, 2017

that the fellow we buy our TMR from has been busy. He bought a nearly new Mack tractor last fall and just put it on the road a month or so ago. The three CaseIH Mx 275's are gone and replaced with new JD's of similar size. He just replaced a Kinze 8 row planter with another 12 row. I am assuming that his book keeper told him that either you update some equipment or you will be giving a pile of your hard earned money to the stinking goobermint, take yer choice. He's updating one of the older barns, too.

coonie minnie · May 2, 2017

That's a good problem.

Bruce from Can. · May 2, 2017

Seems the milk price isn't having too much impact on this fellas operation. All the " Big Dog's " around these parts are giving JD and CaseIH the slip , and going to Fendt . Fendt is now part of the Agco family.

Adirondack case guy · May 2, 2017

He may be leasing the tractors on 2yr plans. Gives him an annual fixed expense with just normal maintenance costs, major repairs are warranted, and he has the newest equipment to work with.
Loren

Donald Lehman · May 2, 2017

For some reason, Fendt has never been able to gain a foothold in the US. Agco pretty much gave up on that several years ago.

Donald Lehman · May 2, 2017

I wondered about that Loren, and if the opportunity presents itself, I'll ask him. I know he bought the Mack and the MX 275's had been here since before Jeff started buying TMR from him, so I assume those were purchased. His book keeper (wife) is one sharp lady, and however they handled the deal you can rest assured that it was the most advantageous to the operation at this point in time.

farmerwithmutt · May 2, 2017

I always looked at as either your paying the mechanic or the bank. I've seen so many guys struggling to get a crop in because of poor equipment. Even at work i just stopped and helped a woman change a tire but she's trying to save money by buying a cheap car but she's needing tires ,brakes and front end work she's taking a chance on making it to work or not i worked with a guy that always had car trouble and for the money he spent on the old one he could had a newer nicer car.
Also said truth the working people today do not know how to maintain equipment my renter hangs on tight and pays good wages to his help but hiring a new kid he has trouble getting him to look back and check the equipment . Hired help has to be the worst thing on equipment.

Mike M · May 2, 2017

FENDT is gaining pretty good sales here in Ohio. I see more and more of them all the time. They are now the preferred tractor for on road traveling it seems. JCB fasttrac are not as popular now either.

Hay maker2 · May 2, 2017

Spending money on equipment or paying taxes....
Most people I know spend there money on equipment or other tax write off expenses as they do not want to pay taxes. In the end, they spent all their money and they have nothing saved for a rainy day or retirement.

If my friend makes a $100,000.00 on his farm and the guy down the road makes $100,000.00 working in a factory they pay the same amount of taxes other than what each individual can claim as a tax deduction. The big thing is that the factory guy pays his taxes every couple where the self employer guy pays them every quarter.

Neighbor sold his cows 3 years ago. He paid his taxes and is a wealthy guy that draws Social Security and Medicare/Mediadie. Other neighbor sold his cows 2 years ago, always had new equipment and bragged about never paying or paying very little taxes. Needless to say he is flat broke and can not draw social security or Medicare.

LAA · May 2, 2017

If they spent wisely they will have plenty of high dollar assets when the rainy day comes. In good
years I have always spent most of the windfall on improvements, either to infrastructure or
equipment, if I did not do so the feds and the state would be glad to squander a large percentage
of my money on things I largely don't believe in paying for. When you make a tax deductable
purchase you are effectively receiving a cash discount equivalent to your current tax rate, for
example, a person in the 28% tax bracket who buys a $100,000 tractor pays only $72,000 when tax
savings are considered.

NY 986 · May 2, 2017

Fendt is not doing too much here in the Finger lakes Region of New York. I don't know what they tend to price out at or how competitive they are in terms of price against the domestic brands.

fixerupper · May 2, 2017

Haymaker you hit the nail on the head.

Hay maker2 · May 2, 2017

(quoted from post at 16:45:15 05/02/17) Haymaker you hit the nail on the head.

I have actually suggested that the local co-ops put on a class each year and explain the Pros and Cons of paying taxes or creating tax deductions as well as investing for a retirement. It is really different for each operation, but in the end is where it counts. In the end is where they seem to find out that they screwed up and now they can not do anything about it.

Correct me if I am wrong, when you sell your high dollar assets you have to pay your taxes on them assists. When you sell your farm you have to pay your taxes. In the end it all comes back.

farmerwithmutt · May 2, 2017

I wish my dad had done like you said we did everything by hand and the machinery was poor etc .But he put a lot in the bank when he sold out the government took most of it i tried to get him to sell to me but no he gave it to the government. So many times he passed on great money making deals amd gave it to the government .
Funny now that i look at it they got the cash i got the bad back and arthritis thanks dad

Hay maker2 · May 2, 2017

(quoted from post at 17:05:15 05/02/17) I wish my dad had done like you said we did everything by hand and the machinery was poor etc .But he put a lot in the bank when he sold out the government took most of it i tried to get him to sell to me but no he gave it to the government. So many times he passed on great money making deals amd gave it to the government .
Funny now that i look at it they got the cash i got the bad back and arthritis thanks dad

Not to be rude, but that is called poor estate planning. A good attorney / financial advisor would of helped the transfer and saved everything.

ADB-Ia · May 2, 2017

I've seen people save themselves rich and I've seen people save themselves poor. I've seen some spend themselves rich and I've seen some spend themselves poor. It's not about the dollar amount, it's about the thought and reasoning behind the decisions that makes the difference. I have enough trouble making my own decisions work that I don't have time to worry about my neighbors. Some of the worst decisions are the ones determined by what the neighbor is doing. By the way, my father-in-law is a saver and I'm a spender and we've both done well. One thing I've learned - there is more than one way to do just about everything. ADB

Goose · May 2, 2017

Five + four = nine. But so does six + three. Also seven + two. Etc.

pat sublett · May 2, 2017

Better to enjoy the new equipment. The gov'ment is going to get it. I worked hard all my life (82), saved and put all I could in a 401K. I lost 5% of my 401K last year but still had to sell $10,000 in stock to pay my income tax, eaven though I didn't earn a penny. Put your money in a 401K and they are coming after the tax later, maybe at a higher rate. I wouldn't mind paying tax if it was used properly. My bigest problem is a lot of it is used to support people who don't work or pay tax.

Hay maker2 · May 2, 2017

(quoted from post at 21:25:32 05/02/17) Better to enjoy the new equipment. The gov'ment is going to get it. I worked hard all my life (82), saved and put all I could in a 401K. I lost 5% of my 401K last year but still had to sell $10,000 in stock to pay my income tax, eaven though I didn't earn a penny. Put your money in a 401K and they are coming after the tax later, maybe at a higher rate. I wouldn't mind paying tax if it was used properly. My bigest problem is a lot of it is used to support people who don't work or pay tax.

If you spent all your money trying to avoid paying taxes and saving for a rainy day then your going to be one of them people who you mentioned above; My biggest problem is a lot of it is used to support people who don't work or pay tax.

I don't like the way the taxes are used either and this is not about how the taxes are used, its about not getting caught up in the whole tax write off thing.

Yes, there is a time and place to spend money and buy new equipment, but to many times they are more concerned about saving tax money and not saving for lean times or a retirement.

I hear all the excuses from own family and friends. Regardless if you are a farmer, a factory worker, or own the gas station down the road, if they all make $100,000.00 then they all fall into the same tax bracket, the only difference is what deductions that they can create.

I feel a lot of people and self-employed people need a better understanding of the tax and financial system. I am for sure that I have ruffled some feathers with the whole tax advantage crap....

Your paying taxes on a 401(k) as the money that was invested into it was tax free. Over time the 401(k) grew and made you money, even if it is just numbers on a paper. The 401(k) is designed for income after retirement. So you can afford to live your life and not be one of them people that live off the tax dollars.

Bret4207 · May 3, 2017

(quoted from post at 20:06:06 05/02/17)

(quoted from post at 21:25:32 05/02/17) Better to enjoy the new equipment. The gov'ment is going to get it. I worked hard all my life (82), saved and put all I could in a 401K. I lost 5% of my 401K last year but still had to sell $10,000 in stock to pay my income tax, eaven though I didn't earn a penny. Put your money in a 401K and they are coming after the tax later, maybe at a higher rate. I wouldn't mind paying tax if it was used properly. My bigest problem is a lot of it is used to support people who don't work or pay tax.

Click to expand...

If you spent all your money trying to avoid paying taxes and saving for a rainy day then your going to be one of them people who you mentioned above; My biggest problem is a lot of it is used to support people who don't work or pay tax.

I don't like the way the taxes are used either and this is not about how the taxes are used, its about not getting caught up in the whole tax write off thing.

Yes, there is a time and place to spend money and buy new equipment, but to many times they are more concerned about saving tax money and not saving for lean times or a retirement.

I hear all the excuses from own family and friends. Regardless if you are a farmer, a factory worker, or own the gas station down the road, if they all make $100,000.00 then they all fall into the same tax bracket, the only difference is what deductions that they can create.

I feel a lot of people and self-employed people need a better understanding of the tax and financial system. I am for sure that I have ruffled some feathers with the whole tax advantage crap....

Your paying taxes on a 401(k) as the money that was invested into it was tax free. Over time the 401(k) grew and made you money, even if it is just numbers on a paper. The 401(k) is designed for income after retirement. So you can afford to live your life and not be one of them people that live off the tax dollars.

I get what you're saying, but I disagree with some of the conclusions you draw. The more money taken in taxes, regardless of how it's spent, the less money the worker has to use. save, etc. Excessive taxes are not good for the economy or the taxpayers. Blindly paying in the belief the system needs you money is true ignorance.

I noticed.........

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