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Articles Tagged with ''depreciation''

Managing capital purchases: When to repair or replace

Guidelines to assist in determining whether to replace or repair equipment.
September 24, 2025
Matt Lange

In some cases it is better to repair farm equipment and other times it is better to replace. Knowing when to take action on one versus the other is also part of a bigger strategy for managing your dairy operation.


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Top 3 financial planning concerns for agribusiness owners and operators

Questions regarding whether an estate plan protects assets for future generations, reducing tax bills and having a successful succession plan are top of mind for many dairy producers, including those participating in this survey.
September 8, 2025
Mark Sherin

We spoke to more than 100 dairy operators, farmers and ranchers, and the top three concerns were protecting assets for future generations, minimizing tax liabilities and ensuring a successful succession or exit strategy. Let’s explore how family farmers can address each one.


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To build, or not to build? Economics of a farm shop

Farmers face three options for equipment storage: no covered storage, a machine shed or a farm shop. Key considerations include location, design and capital, with benefits in value retention and repair efficiency.
November 12, 2024
Brett Wilder

One of the most difficult decisions to make on the farm is whether or not to build a space for equipment and machinery storage and what type of space to build.


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Equipment write-offs: There’s more to it than you might think

Buying equipment at year-end for tax deductions requires considering depreciation timing for the most benefit. Utilize bonus depreciation, Section 179 or a combination of the two to manage deductions strategically, balancing current and future financial impacts.
August 23, 2024
Doug Lincoln

It’s pretty common for clients to consider buying equipment at year's end in order to write it off for tax purposes. Bottom line: We need to think about depreciation timing for when the tax deduction will help the most.


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Have an appreciation for depreciation

Understanding the methods of calculating depreciation can aid in making investment decisions.
August 13, 2024
John Molenhuis

When looking to buy new equipment or build new buildings, one of the key considerations is the cost of ownership or their fixed costs. The largest of the fixed costs is depreciation.


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Decisions and dollars: Understanding equipment costs on the farm

Whether your equipment is being used, or sitting by the barn, it accumulates costs. Make sure to manage fluctuating variables of equipment with regular review and cost calculators available to you.
April 1, 2024
Brett Wilder

Every farm manager must make decisions about equipment. When to buy, when to sell and when to hire out the work are common questions. All of these decisions start from the same place: understanding your costs.


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Why and how to simplify calculating winter cow costs

Understanding and controlling costs is a vital component of ranch profitability. Make this the year you put pen to paper. Or should we say, finger to iPad.
November 14, 2023
Ali Klatt

Keeping and feeding cows through the winter is likely one of the largest reoccurring investments you’ll make in your cow-calf operation. A lot goes into the final calculation, but the return value from tracking winter cow costs is well worth it.


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What to know about installing used robots and parts

Used dairy robots are growing in popularity and offer producers a path to the benefits of robotics at a reduced cost. Protecting that investment, however, requires diligent research and an understanding of variables applicable to used robots.
October 27, 2023
Ben Guelker

Robotic dairy systems have been available to the public for nearly three decades. In that time, numerous manufacturers have entered the industry, providing consumers with a variety of robotic solutions for milking, feeding and even manure management.


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Selling the cows? 4 things to avoid

Feeding a high-quality ration, maintaining consistent genetics, managing data and having a proper plan in place can add to your final paycheck.
August 23, 2023
Mandy Schmidt

Proactively strategize with your dairy’s key stakeholders to maximize cattle marketability in case the time comes to sell the cows.



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Economic importance of cow longevity and depreciation

Cow longevity is directly related to the profitability of an operation. Cows that leave the herd before weaning a fifth calf saddle the remaining cows with extra costs.
April 17, 2023
Rick Machen

The verdict is in – an open cow is among the top three financial liabilities for cow-calf operators. Calf sales are the largest contributor to annual income; cows that fail to wean a calf are a financial burden borne by the productive cows.


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