Farmers share farm machinery to save costs

During these tough economic times, small- to mid-sized farmers are reducing their machinery costs by owning equipment jointly to save money.

“Teaming up can make a big difference — especially for small-to mid-sized farmers whho have 400 to 600 acres,” said William Edwards, professor of agricultural economics at Iowa State University. “Large farmers are so big that they can get all the economies of scale out of the way, while smaller farmers hire out much of these things since they can’t afford to purchase their own equipment.”

According to Ohio Ag Manager, joint ownership of farm machinery offers medium and small farmers a chance to reduce costs per acre and increase labor efficiency. Potential savings exist in several areas, including:

• Greater annual use of large-ticket machines
• More efficient use of labor during peak fieldwork times
• Fewer weather delays because fields are more spread out
• Opportunities to do custom work for other operators or landowners
• Greater use of individual operator skills and specialized labor
• More efficient use of repair and maintenance tools and facilities
• Volume discounts on purchases of inputs and supplies
  

A recent study estimated that three medium-sized grain farms (1,500 acres each) could combine their equipment and reduce their total machinery costs per acre from $44.66 to $28.75 using conventional seeding technology, as well as reducing costs from $37.93 per acre to $25.36 per acre using direct seeding technology. (Harris and Fulton)

The key to successful joint ownership is for the partners to be able to agree about when and how to use each piece of equipment. Depending on weather and crop conditions, decisions may have to be made on a day-to-day basis. The objective is to complete fieldwork for all farmers in a timely manner while minimizing the time spent transporting machinery.

Farmers who are interested in learning more about joint farm machinery ownership can read the Farm Machinery & Labor Sharing manual written by the North Central Farm Management Extension Committee. It details both operational and organizational issues and provides sample sharing agreements and worksheets for allocating costs fairly among farmers.

What are your thoughts about sharing farm machinery? Do you or do you know a farmer who shares his/her farm equipment with another farmer? Has the experience been beneficial or has there been pitfalls?

Photo obtained from: www.kellyharrows.com

Tricks of the trade: Buying and selling farm equipment online

While it’s common for farmers to buy and/or sell their farm equipment at a local auction, a local dealer or in the classified ads of their local newspapers, the Internet is now becoming one of the best places to look for agricultural equipment.

As with all things, there are some important factors to consider before purchasing or selling agricultural equipment online. Below, farmers share tips about how to use the Internet to sell and buy equipment.

Selling farm equipment online (Farm Industry News)

• Good photos: Bad photos make for poor sales. It is important to make sure that the lightening is good and to show a variety of photos, such as tires, chains, wear points, paint and general appearance.

• Clean equipment: A good wash job on equipment can generally produce a 10 percent greater return. Once the equipment is clean, place it in a nice location like a clean shed on a well-kept farm (This is great place to take a good photo).

• Price: Price equipment reasonably well (check current auction information to help price equipment). In most instances, a farmer is never going to pay the asking price.

• Equipment details: The history of the machine is important. Make sure to provide all of the information that you would provide in a classified ad. Also, don’t forget to provide a way for farmers to contact you with questions.

Buying farm equipment online (Farm Management Software)

• Research: Compare websites for farm equipment — look at the quality of the products, the services they provide and their prices. These are some of the most important aspects to consider when purchasing quality agricultural equipment.

• Price: Don’t look for the least expensive prices because they could be the wrong choices. Instead, look for well-known brands, as they usually produce high quality products.

• Websites: Various websites specialize in agricultural equipment: www.tractorhouse.com; www.farmcountrytrader.com; www.machinerypete.com; www.auctions.farmindustrynews.com
  

As more farmers go online to buy and sell their farm equipment, it will be interesting to see what new online trends will surface. Could it be that more traditional methods to selling and buying farm equipment, like auctions and classified ads, will fade away?

Do you know a farmer who has bought or sold farm machinery online? Did they have a positive or negative experience?

Photo obtained from: farmmanagementsoftware.org/tips-to-buying-used-agricultural-equipment







Preparing the farm for winter weather

Some people believe that once crops have been harvested in the fall, farmers can sit back and relax until the spring. However, there are a few things that farmers need to do after the harvest to prepare their farm for the winter months.

Making sure the farm is “winter ready” can be extremely beneficial. For instance, winterizing farm equipment can reduce start-up time in the spring, extend the life of the equipment and allow for a higher re-sale value.

Likewise, farmers also need to prepare their farm animals for the harsh winter months. Keeping animals safe, warm and well fed during the winter is essential to their health and well being.

Ehow.com provides tips about how to winterize farm equipment and prepare farm animals for the winter.

Farm Equipment

• Give all equipment an oil change to prevent corrosion. Change air filters and fuel filters. Completely fill gas tanks to prevent water from accumulating in the tank.
• Lubricate the bearings and joints on equipment to maximize their lifespan.
• Check the equipment’s antifreeze for the correct freezing temperatures. (The composition of fluid in the radiator should be 50 percent water and 50 percent antifreeze).
• Enhance the life of the belts by reducing tension.
• Minimize sidewall damage to tires by inflating them to the recommended pressure in the owner's manual.
• Clean planters, combines, air seeders and drills.
• Remove soil from tillage equipment. Follow with an application of rust-proof compound.
• Store equipment in a protected building or shelter.
  

Farm Animals

• Make sure pens are located in an area where animals will be protected from harsh winds.
• Clean pen floors daily or design it in a way that it drains properly.
• Add one solid wall to the pen if there isn't one already. This provides a windbreak.
• Lay down extra bedding for animals. Straw, tree bark or wood shavings provide a soft surface to sleep on as well as additional insulation.
• Feed your animals more than usual in the winter. Animals exposed to harsh winter weather need extra calories.
• Check the water trough every day. The water supply should be designed in a way that prevents freezing in the liner.
• Remove any icy buildup in or near the pen that could cause injury to the animals if they should fall on it.
• Shovel or plow snow away from the pens. Never allow it to build up so much that the animals are trapped inside.
  

While some farmers may have harsher winter weather than others, it’s always best to be prepared for what Mother Nature dishes out sooner rather than later. It can save farmers time and money once the first signs of spring arrive.

Do you prepare your farm or home for the winter? What tasks do you make sure you have done before that first winter storm takes place?

Photo obtained from: photo.net