[GleanerFanatic]

I am trying to start up a custom harvesting business and I need some help. For all of you out there, what have you found to be better, buying or leasing? Which is better in helping to keep up with the new equipment and technology? And what is the price difference between buying and leasing? If you could help me out that would be great! Thanks!

 

[pioneer]

I have been doing leases. My last lease is way out of line. I love Gleaners but if things dont change this will be my last one. I used to run about 125/hour, now I am about 195. I am rolling tractors right now and it works well. You need to have a predetermined depreciation schedule set up with dealer in my opinion if you are going to do this.

 

[cptusa]

Depends on your financial situation. Sure lease payments are 100% tax deductable, and can probably keep newer iron on the farm more frequently, but I never liked leasing because you never build equity.

 

[gmguy]

We personally buy. Hate paying on something to never own it.

What part of SE Idaho are you in? Agri-Service is the dealer?
IMO Agri-service charges plenty on their used equipment, but from what I hear they are very competitive on new equipment.

If you get rocks in your area like we do in SC Idaho, definitely need ingestion insurance. We dont carry it since we run old crap, but on a newer machine, especially if its your only machine, I would definitely cover it against rock damage.

Good choice going with Gleaner, IMO AGCO is pushing to gain market share in Idaho and is doing a good job. Have you had previous Gleaner experience? Previous Custom Harvesting experience?

Best of luck!

 

[GleanerFanatic]

We personally buy. Hate paying on something to never own it.

What part of SE Idaho are you in? Agri-Service is the dealer?
IMO Agri-service charges plenty on their used equipment, but from what I hear they are very competitive on new equipment.

If you get rocks in your area like we do in SC Idaho, definitely need ingestion insurance. We dont carry it since we run old crap, but on a newer machine, especially if its your only machine, I would definitely cover it against rock damage.

Good choice going with Gleaner, IMO AGCO is pushing to gain market share in Idaho and is doing a good job. Have you had previous Gleaner experience? Previous Custom Harvesting experience?

Best of luck!

gmguy, We have been running an R62 for around 15 years now, so I am pretty familiar with Gleaner, and I have been studying about the new combines ever since they came out. We have done a little custom cutting before, but nothing big scale like I am wanting to go. So, that is where I am at right now. Thanks for the advice, and I'll take anymore if you have any!

 

[gmguy]

If you have an R62, I am sure you will be able to jump right into an S series no issue, and get along great.

How big are the fields in that part of the state? IMO I would forgo the graincart and boost the truck fleet, especially if its a long haul.

How far do you have to haul it? Surely not to Bliss?

 

[GleanerFanatic]

Our fields usually range in size anywhere from 100-500 acres. As for hauling, it is a 15 mile haul to American Falls.

 

[redline73]

With where the prices of commodities and used equipment are heading these days, I'd look into keeping what you got maybe mod the 62 and find you another 62 to run along side it and modify it as well. With an 8.3L cummins they are really easy to turn up. An extra 50-75 horses can easily be achieved out of them and requires no $$, then you would match the 68 in HP. For a little bit of money and parts (injectors) into the 8.3 you could be in the same HP range as the 78. Just remember to add on a pyrometer gauge. In wheat you dont need such huge capacity, ya wont ever need that large clean grain system that comes with the 8 series. The machines would be paid off quicker and more money in your pocket at the end of the day. I know what its like to have your sights set on a 7 or 8 series because they are the best of the new technology, but the banker had the tendency to calm me down and point me in the direction of some good used machines. Ended up getting a 62 with 1800 hrs for under 30k. After a few grand its been modified with PFP parts and plan to turn up the motor before wheat/pea harvest next season to run alongside my R65 with PFP internals. For a roughly 40k you could have a machine setup with PFP internals and a yield mapping system. There's my two cents, good luck!

 

[gmguy]

GleanerFanatic, check big iron.com there is a R62 coming up, and its allready in Eastern Idaho.

The Deutz has a lot of snort to it, just keep it clean and cool.

I agree with Redline, the commodity prices make a used machine look really good.