Are you finding it hard to justify a new tractor?

mayoboyo

As the title says...at a bit of a crossroads with the current tractor, a 2wd 70hp unit. Its probably worth 4k max and will require an investment in a new clutch, four tyres, cab tidying and lighting. All in all probably 2-3000 worth. It’s struggling with some jobs, especially bale handling over the summer and winter and right now, I dont have the confidence to take it on the main road for fear of it breaking down with a load of cattle in a trailer or a hopper of fertiliser behind me.

Ive been looking around at second hand machines lately and theyre all priced in or around 24k upwards for a 4wd Landini or Case (Vision 95/JX90).

I can see the benefits in uprgrading and being able to do more work, more efficiently as opposed to hiring or borrowing and being at the mercy of someone else but the old man is dead against spending modern day money on a machine. He’s still in the days of getting by and dealing in shillings and pence.

We’re only farming part time really, killing 20 cattle a year on 60 acres but theres still the work to be done on the land.

Are most second hand tractors out of reach of farmers in my own situation or where are there bargains to be had? A lot of lads have 390s around here but theyre quiet heavily priced for their age. Ideally I’d be looking to get a recent 4wd around the 90hp mark that will cart bales without hopping up the road but these tractors are nearly beyond my scope when finance comes in at 5-6k a year for 5 years. Any thoughts or opinions on where one could turn??

Muckit

l know exactly where you are coming from. My father would be very similar. Different times as you said though now. Modern life is busy. Very busy. If farming is to be part of it, especially part time, it has to be done with some degree of comfort and safety in mind.

I'm not being nosey but who is the boss? Have ye signed over? My oul lad has his own ideas and he's not shy in letting me know, but l still do my thing as im officially in charge now and the book stops with me!!

Everything cannot be justified from a financial point of view. If it was the case, small dry stock farms wouldn't exist.

When you are part time, you need to be able to hop up in a yoke and it start and work 99% of the time. Tractor and few bits of machinery have to be serviced and kept in good nick or you won't have them

I prob have the tractor you want, but it's costing me to keep it too, as will be the case with any tractor or piece of machinery. Twas exhaust last year, 4new boots in the last 6mths (€2k) and I'll need to tip up the rims and bodywork in the next few years.
If l dont what's my alternative? It's trade her and buy again and what's that going to cost? Machinery needs to be maintained.

But it costs money too. And if u are not holding the purse strings its hard to see what you're options will be if your father doesnt come round.

Mooooo

May be no harm to chat with the accountant and see what the actual cost would be. Capital allowances etc may reduce your tax bill etc

patsy_mccabe

The problem as I see it is, every part time cattle farmer wants the same type of tractor, 80 to 100 HP 4WD with loader. This has seriously inflated the second hand price of these type of tractors. MF 390 being a good example.
I need to get one myself, but the prices are crazy.:mad:
OP definitely consider the tax implications, capital allowances etc over 8 years, AFAIK.

blue5000

There's no such thing as a free lunch in the machinery game, you either have repayments, repair bills or pay someone else to do it.

Lads with an off farm job can justify a new one with the tax saving. I think this is driving up second hand prices too. I think you have to try identify exactly what you need.

satstheway

The good thing about a 300 series tractor is that they will never cost alot to maintain but also have the weight for the heaviest bale.
This is why they are pricey.
Once the newer stuff gets 30 years on it and starts to cause problems it wont end well.

anthony500_1

patsy_mccabe wrote:

The problem as I see it is, every part time cattle farmer wants the same type of tractor, 80 to 100 HP 4WD with loader. This has seriously inlated the second hand price of these type of tractors. MF 390 being a good example. I need to get one myself, but the prices are crazy. OP definitely consider the tax implications, capital allowances etc over 8 years, AFAIK.

Your 100% right Patsy, not currently in a finincal poistion to buy but would always be looking, you will get a 150hp tractor 6 or 8yrs newer than any 90hp tractor around. It doesn't make sense but as you say, it's all about supply and demand and most farmers in the country use around the 90hp mark.
The life of any machine is having a place to put it in when not in use. It keeps them in great order a lot less tin rot, and less trouble with electrical circuts.

Bellview

I bought a lamboughini 95 4 wd a few years back. At the time it was 8 years old had 2k on clock and cost 18k. It will never have the resale of a 390 but it ticks all the boxes. We had lamboughini in past and never had a bother.

Muckit

Bellview wrote: »

I bought a lamboughini 95 4 wd a few years back.

Very underrated tractor, as are the SAME. Is she air cooled? I'd give them careful consideration if l was changing again.

lakill Farm

Bellview wrote: »

I bought a lamboughini 95 4 wd a few years back. At the time it was 8 years old had 2k on clock and cost 18k. It will never have the resale of a 390 but it ticks all the boxes. We had lamboughini in past and never had a bother.

I had a 1999 Lamborghini 1050 Premium . Broke my heart

boggerman1

Fulltime dairy farmer here and I couldn't justify buying a span new tractor.have just changed one of the tractors for an 11 landini powermondial.€26000 along with a trade in of 13000 for a 99 blizzard.the price of a new landini in the 110hp bracket with a loader is around the 70k mark.to go out and borrow the bones of 55000 to me is insane.a lot easier to cope with repayments of circa €500 a month than whatever it would be of a new playtoy

lakill Farm

boggerman1 wrote: »

Fulltime dairy farmer here and I couldn't justify buying a span new tractor.have just changed one of the tractors for an 11 landini powermondial.€26000 along with a trade in of 13000 for a 99 blizzard.the price of a new landini in the 110hp bracket with a loader is around the 70k mark.to go out and borrow the bones of 55000 to me is insane.a lot easier to cope with repayments of circa €500 a month than whatever it would be of a new playtoy

repayments probably wouldn't be a lot more just over a longer time

Dickie10

same boat here, don't know but I have to buy one soon around 95-105 hp. my net profit was 30k last year and I have an off farm job,which I get taxed on along with the farm. with that ballpark figure, would you lads have any idea what repayments I would have to make on a 16-20k tractor. could it be justified? I know there are so many different market prices in play but I finish 40 heifers per year and around 200 lambs. am I in cuckoo lAND THINKING I COULD AFFORD A NEWISH TRACTOR SUCH AS 00-04

lakill Farm

Dickie10 wrote: »

same boat here, don't know but I have to buy one soon around 95-105 hp. my net profit was 30k last year and I have an off farm job,which I get taxed on along with the farm. with that ballpark figure, would you lads have any idea what repayments I would have to make on a 16-20k tractor. could it be justified? I know there are so many different market prices in play but I finish 40 heifers per year and around 200 lambs. am I in cuckoo lAND THINKING I COULD AFFORD A NEWISH TRACTOR SUCH AS 00-04

with net profit of 30k and off farm job a limited company should be maybe consider

FeelTheBern

mayoboyo wrote: »

As the title says...at a bit of a crossroads with the current tractor, a 2wd 70hp unit. Its probably worth 4k max and will require an investment in a new clutch, four tyres, cab tidying and lighting. All in all probably 2-3000 worth. It’s struggling with some jobs, especially bale handling over the summer and winter and right now, I dont have the confidence to take it on the main road for fear of it breaking down with a load of cattle in a trailer or a hopper of fertiliser behind me.

Ive been looking around at second hand machines lately and theyre all priced in or around 24k upwards for a 4wd Landini or Case (Vision 95/JX90).

I can see the benefits in uprgrading and being able to do more work, more efficiently as opposed to hiring or borrowing and being at the mercy of someone else but the old man is dead against spending modern day money on a machine. He’s still in the days of getting by and dealing in shillings and pence.

We’re only farming part time really, killing 20 cattle a year on 60 acres but theres still the work to be done on the land.

Are most second hand tractors out of reach of farmers in my own situation or where are there bargains to be had? A lot of lads have 390s around here but theyre quiet heavily priced for their age. Ideally I’d be looking to get a recent 4wd around the 90hp mark that will cart bales without hopping up the road but these tractors are nearly beyond my scope when finance comes in at 5-6k a year for 5 years. Any thoughts or opinions on where one could turn??

Was in a similar position. Had 25 yo 65hp 2wd with no front loader. Would carry a bale fine but absolutely miserable drawing one bale at time in summer and loads of jobs where front loader would make things so much simpler. Fiddly bits always going wrong.

Found it hard to justify spending 25k on tractor to upgrade. Ended up buying 390 4wd with front loader for about 15k (less trade in for my own). Was just thinking the other day when drawing in bales that was some difference. Draw two bales at time now, easier carry topper, easier foddering in winter and front loader a gift. Now it's still a 25 year old tractor and have already had to fix few bits and pieces with it but local mechanic can do all. Only things I'd like to have that it doesn't are faster box, trailer brake and the open lift arms for putting on topper etc.

Use neighbours 05 Tractor for bales as well and it's a massive step up again from the 390 on terms of comfort, speed of hydraulics etc. Planning on holding onto 390 until I have few things paid off then will try to jump again to something in the 00s.

Long story short - I'd definitely advise you to change up. If you can stretch to a fairly fresh 00s tractor then I would borrow to buy that and mind it well - you'll have it for years and much more comfort than the 90s models.

keepalive213

I only farm on a hobby basis and id like to buy a fresher, more comfortable tractor but I couldn't really justify it going on the limited amount of tractor work I actually do.
If I was going to spend 15k on anything itd be a digger as itd probably get more use.

Dickie10

I don't think so. peaks and troughs of farming. also im only sub teaching if I got a permanent job I might think of it. im also single so no spouse adding to income. anyway this was a very tough spring on bank account and its turning into a tougher summer, in middle of a drought here now! my cousin says I should avail of the stock relief I am getting the last few years as young farmer scheme and strike now and buy a tractor in good times. I hate putting up figures but I wanted to gain advice off people that are not related to me if you know what I mean. if I told other people my figures I have to play with I may get advice that suits them more than me, if you all know what I mean. the farm currently has no outstanding loan repayments.

charolais0153

Dickie10 wrote: »

same boat here, don't know but I have to buy one soon around 95-105 hp. my net profit was 30k last year and I have an off farm job,which I get taxed on along with the farm. with that ballpark figure, would you lads have any idea what repayments I would have to make on a 16-20k tractor. could it be justified? I know there are so many different market prices in play but I finish 40 heifers per year and around 200 lambs. am I in cuckoo lAND THINKING I COULD AFFORD A NEWISH TRACTOR SUCH AS 00-04

Whats net profit?

Grueller

I have exactly what the op needs. 90 hp, 4wd, self levelling loader. After I bought her I bought an out farm about 8 miles away and now find for hauling she is too small. I am looking at changing for about 110 - 120 hp. I would need to put 20-25k with her though so it won't be this year.

mayoboyo

Good to see I've got plenty more in the same position as I am! As someone asked earlier, who is the actual boss, unfortunately it isn't me just yet. We were looking at getting it signed over but it never happened just out of laziness dare I say. :rolleyes: As we're already in a joint herd number scenario, I have some say, just not 100% at the moment.

I've looked at a few 390's recently but anything that I would want to take home is 18k upwards, at that money I'd chance borrowing the other 6k and look for a mid 2000's Landini or Case.

What are peoples thoughts on a 2wd 390? Some clean models around but I've yet to see any prices, I'd hope they would come in a few grand less than its 4wd equivalent?

I'm not specifically looking for a tractor with a loader, yes it would be handy on some occasions and in an ideal world I'd have it on a new tractor but at the moment and with my current finances if I can find a clean tractor to carry a bale on the splitter and do the general day to day topping, carry a half ton of fertiliser, spraying and rolling then I'd be happy.

_Brian

mayoboyo wrote: »

Good to see I've got plenty more in the same position as I am! As someone asked earlier, who is the actual boss, unfortunately it isn't me just yet. We were looking at getting it signed over but it never happened just out of laziness dare I say. :rolleyes: As we're already in a joint herd number scenario, I have some say, just not 100% at the moment.

I've looked at a few 390's recently but anything that I would want to take home is 18k upwards, at that money I'd chance borrowing the other 6k and look for a mid 2000's Landini or Case.

What are peoples thoughts on a 2wd 390? Some clean models around but I've yet to see any prices, I'd hope they would come in a few grand less than its 4wd equivalent?

I'm not specifically looking for a tractor with a loader, yes it would be handy on some occasions and in an ideal world I'd have it on a new tractor but at the moment and with my current finances if I can find a clean tractor to carry a bale on the splitter and do the general day to day topping, carry a half ton of fertiliser, spraying and rolling then I'd be happy.

I’ve a friend with a beautiful 390, lovely tractor, but wishes he’d gone a bit more for 4wd.

White Clover

Would you consider a landini blizzard 85 or 95 ?
We had a 95 for 7 years and it was a great tractor. It left us with 9500 hrs on it and it was going like a new one.

Sugarbowl

We have the exact same issue as OP. Small 2 wd tractor is currently what we have - a nightmare for drawing bales. The problem seems to be getting worse every year. Does the handy jobs grand like fertiliser etc. Finance aside, finding a tidy 4wd is so difficult - and to be sure you are not buying someone else's problem is another story. With small passage ways and entrances, and big powerful machine would not suit the setup.

Definitely spend the few grand more for a 4wd and a loader. A tractor is only half a machine without a loader, there is so many jobs it makes easier that you probably wont even realise until you are actually doing the jobs.

mayoboyo

Santana Tall Tentacle wrote: »

Definitely spend the few grand more for a 4wd and a loader. A tractor is only half a machine without a loader, there is so many jobs it makes easier that you probably wont even realise until you are actually doing the jobs.

Aside from cleaning out silage waste or bedding and maybe carrying a few bits if fencing or feeding cattle, what other jobs have you found to be made easier? A neighbour has a loader for his tractor and it spends more time off the tractor than it does on it as he says it's too awkward around the yard! I'm not saying it isnt a great job, just wondering if the investment of the loader and all the extra implements like a shear grab, bucket and bale handler is worth it?

wrangler

mayoboyo wrote: »

Aside from cleaning out silage waste or bedding and maybe carrying a few bits if fencing or feeding cattle, what other jobs have you found to be made easier? A neighbour has a loader for his tractor and it spends more time off the tractor than it does on it as he says it's too awkward around the yard! I'm not saying it isnt a great job, just wondering if the investment of the loader and all the extra implements like a shear grab, bucket and bale handler is worth it?

A loader on a secondhand tractor doesn't add much to the price, certainly not the most of ten grand that it costs on a a new tractor,
I've pallet forks here for mine, everything goes on a pallet now, then nothings in your way as the loader clears the way. I've also made a bracket for the post driver to put in on the loader, no problem anymore to drive posts on banks or in corners or even across drains,
Once you take off the implement on the front you'd be clumsy to think it was awkward
I would never consider buying a tractor without a loader

Dunedin

Dickie10 wrote: »

my net profit was 30k ....... I finish 40 heifers per year and around 200 lambs. 04

Must buy a few lambs

kevthegaff

I used to be anti machinery but starting to change. Let's say u pick up a new holland with a loader for 21 grand. Write off 3k a year for 7 years. Tractor is still an asset at the end of the 7 years and if the right model is chosen depreciation might be minimal. For example I rang a dealer 5 yrs ago about a tm 150 and it was a 05 for 24 k. Their still making it so if you can choose a good model it might not cost much.

mayoboyo

kevthegaff wrote: »

I used to be anti machinery but starting to change. Let's say u pick up a new holland with a loader for 21 grand. Write off 3k a year for 7 years.

When you say "write off", I know thats relating to tax... is that like an allowable expense? Is seven years the period allowed for any tractor purchase?

patsy_mccabe

Capital allowances for plant and machinery can be claimed at a rate of 12.5% per annum over eight..........

https://www.revenue.ie/en/companies-and-charities/corporation-tax-for-companies/corporation-tax/capital-allowances-and-deductions.aspx

I'm no accountant, by the way.

kevthegaff

mayoboyo wrote:

When you say "write off", I know thats relating to tax... is that like an allowable expense? Is seven years the period allowed for any tractor purchase?

Capital allowance

mayoboyo

Would I be right in thinking that for a tractor that costs 25k I'd be allowed to remove 12.5% of its value from my tax bill over 8 years i.e. 3125p/annum?

Mooooo

Rough way of looking at it is if you are paying a good bit of tax at the high rate, it may halve the actual cost of the machine. Say machine costs 32 k, over 8 years that's 4 k a year which is deductable from your taxable income so if at the high rate you are saving roughly 2k over 8 years in tax. So while you must still pay the 32k out, prob over 5 years, you'll be paying 16k less in tax over 8 years. If your paying the lower bracket it would be 8 k over 8 years. I think. If im wrong there someone correct me.
Now if you sell the machine after 8 years after using the capital allowances you may get caught to pay tax on that sale as you are after depreciating the value to zero in the books so any sale price would be seen as a profit

mayoboyo

Mooooo wrote: »

Rough way of looking at it is if you are paying a good bit of tax at the high rate, it may halve the actual cost of the machine. Say machine costs 32 k, over 8 years that's 4 k a year which is deductable from your taxable income so if at the high rate you are saving roughly 2k over 8 years in tax. So while you must still pay the 32k out, prob over 5 years, you'll be paying 16k less in tax over 8 years. If your paying the lower bracket it would be 8 k over 8 years. I think. If im wrong there someone correct me.
Now if you sell the machine after 8 years after using the capital allowances you may get caught to pay tax on that sale as you are after depreciating the value to zero in the books so any sale price would be seen as a profit

Jaysus these books are never simple.. revenue have you at every turn!:(

SuperTortoise

Mooooo wrote: »

Rough way of looking at it is if you are paying a good bit of tax at the high rate, it may halve the actual cost of the machine. Say machine costs 32 k, over 8 years that's 4 k a year which is deductable from your taxable income so if at the high rate you are saving roughly 2k over 8 years in tax. So while you must still pay the 32k out, prob over 5 years, you'll be paying 16k less in tax over 8 years. If your paying the lower bracket it would be 8 k over 8 years. I think. If im wrong there someone correct me.
Now if you sell the machine after 8 years after using the capital allowances you may get caught to pay tax on that sale as you are after depreciating the value to zero in the books so any sale price would be seen as a profit

But only if selling and not replacing tractor? If you're replacing then the cycle starts again no? I suppose the most efficient way would be to exhaust the capital allowance and then trade up?
I'm not really all that up on it to be honest.

anthony500_1

In this day and age, is a 15yr old tractor with 5000 hours on the clock a bad buy, or is that what most lads would be expecting on tractors of this age. Would you work another 5000 hours out of them before major engine or hydrolics failures

Timmaay

Mooooo wrote: »

Rough way of looking at it is if you are paying a good bit of tax at the high rate, it may halve the actual cost of the machine. Say machine costs 32 k, over 8 years that's 4 k a year which is deductable from your taxable income so if at the high rate you are saving roughly 2k over 8 years in tax. So while you must still pay the 32k out, prob over 5 years, you'll be paying 16k less in tax over 8 years. If your paying the lower bracket it would be 8 k over 8 years. I think. If im wrong there someone correct me.
Now if you sell the machine after 8 years after using the capital allowances you may get caught to pay tax on that sale as you are after depreciating the value to zero in the books so any sale price would be seen as a profit

That's all only assuming you would have no other use for the money ha. In my case I've been busy investing in other areas on the farm which either give a much better roi or reduce the workload on the farm. I've hit the stage now where I have the output up, and investing less in the farm, so am faced with a bigger tax bill, however I've very little in my pension pot yet, so putting afew quid into that now while I can is my next step.

I've had 3 opportunities to buy a new tractor here over the last few yrs, and each time I just couldn't justify it, aside from what I said above, I think tractors have got far too complicated, electronics for everything with no hope of repairing them yourself, and in the last year the price of new tractors has jumped hugely with higher emissions and safety standards. I contract out most machinery work here, my only use of a tractor is winter feeding and the bit of fert/topping etc, for that I don't need any complicated electronics, just a reliable tractor

hopeso

mayoboyo wrote: »

Good to see I've got plenty more in the same position as I am! As someone asked earlier, who is the actual boss, unfortunately it isn't me just yet. We were looking at getting it signed over but it never happened just out of laziness dare I say. :rolleyes: As we're already in a joint herd number scenario, I have some say, just not 100% at the moment.

I've looked at a few 390's recently but anything that I would want to take home is 18k upwards, at that money I'd chance borrowing the other 6k and look for a mid 2000's Landini or Case.

What are peoples thoughts on a 2wd 390? Some clean models around but I've yet to see any prices, I'd hope they would come in a few grand less than its 4wd equivalent?

I'm not specifically looking for a tractor with a loader, yes it would be handy on some occasions and in an ideal world I'd have it on a new tractor but at the moment and with my current finances if I can find a clean tractor to carry a bale on the splitter and do the general day to day topping, carry a half ton of fertiliser, spraying and rolling then I'd be happy.

If you think a good clean 2wd 390 will do what you want, and comes within budget, by all means buy one... If you later discover you need 4wd, or a better tractor, the 390 won't lose a penny. If you're lucky, it may well increase in value while costing little to maintain and repair....

Timmaay

anthony500_1 wrote: »

In this day and age, is a 15yr old tractor with 5000 hours on the clock a bad buy, or is that what most lads would be expecting on tractors of this age. Would you work another 5000 hours out of them before major engine or hydrolics failures

5khrs is only ran in (once it wasn't some rough fooker who owed it), you should get an easy 10k hours outa a tractor before anything major goes. The best buys for high hours are ex contractor/tillage tractors, which definitely tend to be looked after better, obviously these tend to be the larger hp tractors, harder to find clean 100hp loader tractors.

patsy_mccabe

Here ya go. 4WD 45HP Europard 404 for £4,800 sterling. It might only get you to the gate or it could be a great buy.

https://www.donedeal.ie/tractors-for-sale/europard-404/19041006

Buford T. Justice XIX

SuperTortoise wrote: »

But only if selling and not replacing tractor? If you're replacing then the cycle starts again no? I suppose the most efficient way would be to exhaust the capital allowance and then trade up?
I'm not really all that up on it to be honest.

Yeah, that's the way it works, trade it in to reduce the value of the next loan borrowed to pay for it.


Tbh, I bought new two years ago because I didn't feel there was value in 5 year old tractors and loaders when I needed to change so in my case I found it hard to justify a second hand tractor and loader.

Cattlepen

Dickie10 wrote: »

same boat here, don't know but I have to buy one soon around 95-105 hp. my net profit was 30k last year and I have an off farm job,which I get taxed on along with the farm. with that ballpark figure, would you lads have any idea what repayments I would have to make on a 16-20k tractor. could it be justified? I know there are so many different market prices in play but I finish 40 heifers per year and around 200 lambs. am I in cuckoo lAND THINKING I COULD AFFORD A NEWISH TRACTOR SUCH AS 00-04

That’s a lot of profit to be getting out of that amount of stock. Wish I knew the secret

milhous

I know nothing of farming nor prices for tractors, but on my quest for cheap cars I saw this website a few weeks ago and noticed there were a few tractors on it.

I know the cars are heavily discounted atleast.

I just saw this thread on the front page and thought this link may be of use.

https://repodeals.co.uk

That is all.

anfieldrd

I purchased a case mxu 100 over the last month, 2007 5500 hours, 12 month warranty. Gave 31000 + vat for it.


Dairy herd of 70 cows, managed up until now with 2wd but felt with more bales I needed a 4wd and allows me to do many more jobs myself.

Costing just over €500 a month, I feel it's a good investment, I'd be hoping this will do me for a long time yet.

anthony500_1

patsy_mccabe wrote:

Here ya go. 4WD 45HP Europard 404 for £4,800 sterling. It might only get you to the gate or it could be a great buy.

You might laugh Patsy, my late uncle bought one of them without a cab I'd say 12yrs ago. It would go anywhere, ideal in bad or hilly ground. He picked it up handy at the time with 200hrs on it, used it away for all the light duties around the farm. Was doing some spraying for a friend of his, and the man was so impressed with how good it was on bad ground, he bought it off him. And that man still has it, it's still going. He was saying it will lift a bale of haylage no bother.

Siamsa Sessions

In a nutshell, you get the price of the tractor back via tax credits over 8 years, if you’re paying tax at the lower rate?

And half the price of it back if on the high tax rate?

Then you still have the tractor after the 8 years, provided it’s still going.

Mooooo

Siamsa Sessions wrote: »

In a nutshell, you get the price of the tractor back via tax credits over 8 years, if you’re paying tax at the lower rate?

And half the price of it back if on the high tax rate?

Then you still have the tractor after the 8 years, provided it’s still going.

A quarter of the price at the low rate. If paying little tax as it is there may be no real saving to be made. As Timmay said above, should only buy if it's needed, looking at the tax side just allows you to see how much it will cost in the long term using capital allowances. That's why a chat to your accountant may be important as you would want to be making a decent profit every year if using capital allowances at the high rate to work out what it will cost you if buying a high value machine

Siamsa Sessions

Mooooo wrote: »

Siamsa Sessions wrote: »

In a nutshell, you get the price of the tractor back via tax credits over 8 years, if you’re paying tax at the lower rate?

And half the price of it back if on the high tax rate?

Then you still have the tractor after the 8 years, provided it’s still going.

A quarter of the price at the low rate. If paying little tax as it is there may be no real saving to be made. As Timmay said above, should only buy if it's needed, looking at the tax side just allows you to see how much it will cost in the long term using capital allowances. That's why a chat to your accountant may be important as you would want to be making a decent profit every year if using capital allowances at the high rate to work out what it will cost you if buying a high value machine

Thanks. We’d be spending less than 10k and have relatively high off-farm income. I’ll give the accountant a shout before doing anything.

This thread has been a great read - thanks to all posters.

Dickie10

net profit is what your taxed on. profit left after expenses like fertilizer feed etc are taken into account, also sfp is included in that. so if you take out my payments net profit was only 15k that's below minimum wage, don't get too excited lads!

charolais0153

Dickie10 wrote: »

net profit is what your taxed on. profit left after expenses like fertilizer feed etc are taken into account, also sfp is included in that. so if you take out my payments net profit was only 15k that's below minimum wage, don't get too excited lads!

Still though thats 200 on every heifer and 35 on every lamb.

Dickie10

sorry forgot about 10 weanling bulls sold for 890 average at 10 months old