How Do Farmers Afford Tractors?

Farmers own $600,000+ tractors, but how do they afford these essential machines? In today’s video, I explain the various methods available for farmers to purchase the equipment they need to feed the world. From buying outright with cash to financing through banks to leasing from dealerships, I cover all the options. Plus, I'll showcase the investments made on my family's farm in machinery.

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Matthias, aka HiTech Farmer, is a 5th generation family farmer from Southwest Minnesota who promotes agriculture by capturing it through the lens of a camera, one video at a time. Passionate about emerging farm technologies and the benefits of 21st-century precision agriculture tools, such as farm equipment, GPS, and autonomous tractors, Matthias is determined to bring new methods into his operation. These methods can improve his farm's efficiency and sustainability into the future. Learning from his parents' (Mike and Dawn) work ethic, Matthias sees every day as an opportunity to educate and entertain about the daily triumphs and challenges his farm faces, whether technology-related or not. His mission is to share his enthusiasm and knowledge of agriculture as he embarks on what it means to be a farmer in the modern era.

[tunintunin]

I am a farmer, I go used, I always make the money and buy the tractor, zero borrowed money. Yes, I run older equipment but I do not let banks be involved in my life.

[Wazup]

Holy shit, I couldn't sleep at night with those kinds of bills. Best wishes young man.

[jamesharber]

My head will NOT stop spinning after hearing each and every one of those tractor prices! Our biggest tractor was a brand new, 1949 Case SC. :)

[DaleMeese]

I grew up in a farming community and still keep in touch. My good friends family farms and i think their newest tractor is around 1985 and they are doing really good, they like the older because they can easily fix and work on and there is a ton of free parts from junked out ones.

[theodorejohnson]

$700, 000 combine to harvest less than $6 wheat and $5 corn. In 1974 I combined $10 buckwheat and $5 wheat with an A6 Case combine purchased used in the late 60s for $300 in Minn. Did not have to farm thousands of acres to make banks money

[anindividual]

I'm 30 and I don't know what generation of farmer I am. My dad died 9 years ago now of a heart attack, probably from the stress of all the payments and debt. I ended up having to sell almost all my equipment but I was able to get us out of debt from the first time ever and I didn't have to lose the farm. Ended up getting much older equipment, as in an Oliver that I found is a sad state of disrepair and fixing it up. I don't set any speed records or production records, but I can sleep at night like a baby. If I can, I will make whatever attachment I can from hay forks, to box scrapers, to tillage equipment. I've even modified loaders to fit older tractors that they weren't made for.

[northernbeachesguy]

And the reason why prices are through the roof is because of exactly this, your need to have the biggest and the best TODAY and willingness to pay interest means increased prices for everyone else down the line. Congrats!

[CleotusPlays]

Always had in the back of my mind how farmers afforded equipment. Great vid!

[zfilmmaker]

As a long time 5 generational farmer, the high costs are because farmers let manufacturers keep raising prices 20-30% every year. I own 11 Fendt’s, worth roughly 6 million… add another 5, 000, 000 in attachments and implements. The industry prefers farmers be in debt to these manufacturers to keep that industry alive. Farmers have no representation… farm equipment manufacturers have millions of dollars to hire the top lobbyists. Leasing is only something young farmers do if they want a new tractor but it’s the worst way to buy/rent.

[ttlhuskereastcampus]

One other method. John Deere tractors have high resale value. So farmers spread the depreciation over acres as a cost per acre. Then they trade up in 1 to 3 year cycles. Deere salesman already known the Second owner of the depreciated asset and sell it quicker. So most salesman spec the new tractor with the second owner as the priority.

[BrianLawrence-vkpu]

Love the Mule! Was reminded of my first job on a small farm with a 4020, 3020 and a Mule. So long ago.

[DailyGrind-tj]

Your high land values make john deere and the bankers smile.

[WilliamVincik]

the Super M and JD 4020s, great tractors!

[JRivs]

This is why I believe our tech can read minds as well. I can just be thinking something and I get a recommended video or an ad for something I never said out loud haha.

I say all that to say I was going past a farm about a week ago and they were plowing with huge John Deere tractors and my son was asking how they could afford them. I have no clue is what I told him. And now your video was on my recommendations a week later haha. Awesome video and explanation.

Achievement unlocked: You've earned a new subscriber.

[davidpaul]

Not much wear on any of the tyres, so I’m wondering how many hours per year you use all that equipment which then leads me to ask what is the ROI on all that investment? And is there an external source of off farm income propping it up?

[orvalaltwasser]

I like the way you think. I do the exact same thing on our 2500 acre grain farm in Canada.

[MMID]

I'm not a farmer, but I worked for a couple of farm equipment dealers doing PDI stuff back around 2011-2014. I got to drive quite a few makes and models over short distances. My favorite current production tractor for looks is probably the 7R series from JD. The last large modern tractor I actually drove was probably a 2014 New Holland T7. 270.

[WesBrowningGoogle]

Favorite tractor ... the 6150R. Love that series and am looking to buy one soon (6120 for me). Thanks for the video! Very helpful and loved hearing your insight and perspective. Thank you!

[scottschaeffer]

I’ve seen the expansion era, I would love to see the retraction era. More farms, and farmers but smaller everything. The land would be better off.

[Sir_Homelander-of-Homelanderia]

I used to use a 1949 Farmhall M IH on my friend’s dad’s farm for snowplowing. Worked well until it literally blew up.