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Tractor Talk Discussion Board

Re: Horsepower/cost vs. productivity/profit


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Posted by RodInNS on August 11, 2008 at 05:08:33 from (24.224.246.156):

In Reply to: Horsepower/cost vs. productivity/profit posted by wallacedw on August 10, 2008 at 20:04:03:

When does size get ahead of $ prodoctivity? When size gets so big that it gets out of the manager's hands....... Once you get a bunch of employees around and a certain bureauocracy sets in to control that, then I believe you start losing prodoctivity. The other reason is if he's buying a big tractor for envy instead of need. If he's got the acres to justify the rig, it will be more cost effective. It'll probably lower his fuel costs per acre as well as labor costs.
One other factor is field size and shape. If he's got small or uneven fields then he's certainly not getting the best from the big tractor. The same is often true of the little tractor in these fields but you tend to have far less riding on the efficiency of the little tractor so it isn't such a big factor...
I also believe that it doesn't make a bit of difference whether you run new gear or old gear, cost wise if it's sized to what you're doing. Old gear is not cheap to run when you factor in the cost of repairs and downtime or the cost of bringing it into line with a new machine. You'll spend the money one way or the other. Some of us fix old gear and bring it to new condition because we either like the old gear or can put a bunch of sweat equity into the old stuff to bring it up to snuff... but it STILL HAS A COST.

I'd also suggest that the guy that has his gear sized to be just a touch behind on his timing is probably going to come out ahead finincially. He's running the gear to it's maximum capacity. He'll probably lose a bit of yeild because he's a bit behind, but it's still a crop that's going to make money without the extra expenses of bigger gear...

I don't think the remarks about a guy needing bigger gear to get his work done on evenings or weekend are particularly relevant in this discussion because he's buying the gear from a paycheck to keep his hobby going and trying to not have it interfere with his dayjob. That's his choice, but finincial prodoctivity is not what he's after.

Rod


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