If you asked your customers their equipment cost per acre, would they have an answer for you? Some might have a general idea of what their principal and interest payments are annually and could arrive at a per acre cost. But would that include key factors like depreciation, inflation and appreciation in equipment costs over the lifetime of the equipment fleet? Most likely, no.

“If I believed everything the dealer, salesman and retail companies told me I’d be raising 800-bushel corn!” I’ve heard similar statements across the U.S. and Canada with different crops, products and value-added sales pitches.

The airline industry rolls out new airplanes with an anticipated life expectancy. Some aircraft are designed for 15-20 years of heavy use, while others are designed for much longer periods of time; 80-100 years. This evaluation is made based on estimated miles, conditions, environments, and specific uses. Why then, do we do such a poor job of handling our farm equipment the same way?