← FarmCPA Home

What is the Right Equipment Size?

By: | Trackback URL | No Comments

April 26th, 2012

I was riding on the tractor on Wednesday with Chris Barron, my fellow columnist for Top Producer magazine, and we had a good discussion about how farming is different from other “manufacturing” operations when it comes to the right equipment size.

In most manufacturing operations, the weather plays no role in the production process.  The equipment is housed inside of building and other than a tornado or hurricane, the weather does not effect the ultimate production for the day.

However, during planting and harvesting, the weather can have a dramatic effect on the production process.  There is a small window to get planting done and if the weather is not cooperating, not having the right sized equipment can prevent you from getting your crop planted.  Conversely, having too much equipment can be costly if you never need to use it if the weather cooperates.

There is no perfect answer to this question.  If you decide to err on the less expensive smaller side, there may be years when you will not get the crop fully planted or have to switch to an another crop.  However, the reduction in equipment cost may offset this.  If you err on the high side, you will always be able to get the crop in, but your overall equipment cost may make your operation less profitable compared to other leaner farmers.

I think my tractor riding is done for the trip since the farmer client I meet in Illinois today just finished planting last night.  Tomorrow I am in our Stevens Point office for a meeting then fly home on Saturday.  My wife has already told me we are going for a motorcycle ride on Sunday (so I think everybody knows what I am doing on Sunday).

Paul Neiffer

Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a partner with CliftonLarsonAllen in Yakima, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. In fact, Paul drives combine each summer for his cousins and that is what he considers a vacation. Leave a comment for Paul. If you would like to leave a comment for Paul, follow the link above, however, please make sure to include your email address so that he can reply to your comment (your email address will not automatically show up).

More Posts - Website

Follow Me:
Twitter

← FarmCPA Home

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Subscribe to this blog by:

Previous Posts

Events

View upcoming speaking engagements and other networking events for Paul Neiffer and CliftonLarsonAllen’s agribusiness team.

See All

  • Twitter Feed

    If you have higher yields or go all corn for the 2014 crop year consider ARC-IC. It may more than offset base acre penalty 1 day ago

    Presenting two farm bill seminars today. Dayton and Walla Walla 2 days ago

    Netflix down $110 in after hours trading. Sign of momentum stocks going flat? 1 week ago

    Getting ready to go to LA to defend my son and I APU Alumni golf tournament victory last year. I may have to carry him again 1 week ago

    Everybody worried about bubble in land market. They should worry about stock market bubble 1 week ago

    77 degrees on October 8. Perfect. 2 weeks ago

    Somehow IRS listed several counties in Iowa as drought stricken. Hard to believe after all the rain this year 3 weeks ago

    Just saw a bighorn sheep eating grass in the bank next to the freeway. Less than 30' from my car. 1 month ago

    After 82 days in a rental car my wife has talked me into a cruise. We leave Thursday for Miami. Can't wait 1 month ago

    Will final ear weights set a new record. If so final corn yield will be going higher (unless we get an early hard freeze) 1 month ago