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Class 10+ Combine Depreciation. Specifically X9 and new AF11
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havin’funfarming
Posted 9/12/2024 11:31 (#10887843 - in reply to #10887774)
Subject: RE: Class 10+ Combine Depreciation. Specifically X9 and new AF11


jd4930 - 9/12/2024 10:34

GM Guy - 9/12/2024 10:08

barren - 9/11/2024 04:01

Can combines get so big and/or expensive that many smaller farmers, who typically buy the used combines, don't want them?   If that is the case, the resale price of used big combines will really take a hit.  Is that one reason we are seeing so many used big ones on dealer lots?



My personal opinion is maintenance costs alone are going to be a turn off for people on the fence, or they should be.

Dumping 20 Grand to completely rebuild an old machine versus 60 Grand to rebuild a newer one, plus the extra fuel consumption, bigger tires, etc.

It's easier to justify going newer and bigger in a high yield environment, but out here on the drought riddled high plains I think there is still merit for old machines.


Maybe it will cost more to rebuild a newer one but it won't be 3x, not per bushel anyhow.......I question whether it will be any more at all really


I would expect a significantly higher cost to rebuild, I wouldn’t go so far as 3 times the price, but still likely significant. As machines become older the scarcity of parts as well as not being regularly stocked tends to begin to drive both prices and downtime up. However, due to the increased capacity a newer machine also won’t wear out so fast as the hours of use would be lower as well. One of my biggest concerns going forward is actually more about the availability of electronic parts. It would be very frustrating to have a machine in very good shape mechanically that becomes almost useless because no one bothers to make the specialized electronic modules to keep it running.

It’s hard to know where the sweet spot will be in the future as far as the most profitable age of the equipment line up. I suspect it will continue to be in the middle where it doesn’t depreciate quite as fast but is traded off before it becomes too obsolete.
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