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Ever thought of owning a tractor? It’s one of the most exciting investments you could make. You see, the rig helps you pull and haul heavy debris around the farm. In so doing, you achieve the greatest productivity with the least effort. So, why are tractors so expensive?
Tractors are expensive because they attract a high warranty premium, take time, work hours, and money to create, use advanced technology, serve their purpose, safeguard the environment by controlling carbon emissions, are highly versatile, and hold their value.
Therefore, to gain a deeper perspective into this topic, read on. It’s the perfect eye-opener.
The reason why tractors are so expensive
Engineered to handle a heavy workload, the machines endure a lifetime. Therefore, manufacturers fit these specially-designed rigs with high-quality parts to enhance durability.
Additionally, tractors take a lot of investment to build. By factoring in labor, raw material, and technological expenses, production costs fall between $100,000 and $300,000. So buyers must pay a premium to cater to development expenses.
Yet there’s more. Since 1970, the world has been considerably concerned about exhaust emissions and their impact on the environment. As a way of preserving the environment, most tractor manufacturers today produce low emission rigs.
They re-engineer existing combustion and exhaust systems, activities that cost a fortune. Hence, to cater to the added production expenses, a new tractor’s cost then rises significantly. Another factor that makes tractors expensive is the amount of technology sophistication used in their production.
You see, most rigs run on computer systems. Being automatic, therefore, the tractors become operable even by someone with basic training. And that makes their prices skyrocket.
Even better, the amount of technology used in a tractor dictates its level of comfort. Hence, a farm machine with air conditioning will undoubtedly cost more. But that’s not all.
If you have been following international news closely, you must have noticed that the global population now over seven billion individuals. Although a good thing, the population explosion has caused immense pressure on food producers. In return, the farmers have evolved into using advanced farm machinery during production.
However, the rise in demand for tractors hasn’t reflected well on them. Here’s why. To keep up with the growing demand for rigs, manufacturers have priced the machines exorbitantly.
By doing so, they have made the equipment only affordable to a few people. And it doesn’t end there. Versatility has also contributed significantly to the high cost of new farm machines.
I’ll explain. Built using the best technology, the top-rated rigs today run a combo function. Hence, they can easily handle any tilling, compaction, and earth grading works without acquiring new units.
Most importantly, the best tractors on the market run on high-quality parts. The parts then take a lifetime to deteriorate. And when they do, they cost an arm and a leg to replace.
Thus, a rig will always be at the higher end of your budget when you combine rarity and high maintenance costs. Finally, tractors bought at the dealership come with a warranty. The manufacturer bears all repair costs whenever the machine develops mechanical problems until the guarantee expires.
How much does a good tractor cost?
So this begs the question, how much does a good tractor cost? Based on recent stats, a new rig could cost anything between $620,000 and $4,500. Below are factors that dictate the price of a new farm machine.
- Year of manufacture
- Engine power
- Type of suspension system
- Attachments (backhoe, loader, rake)
- Level of customization
Anyways, most farmers are unable to afford new rigs. So they focus on used ones mainly because the old tractors are cheaper and reliable. More so, used machines are a bargain.
You can get yours today with as little as $3,500. All you must do is find a moderately serviced machine with less than 5,000 hours on its tail. It will cost you a few dollars to restore the rig, given that aftermarket parts for old machines are affordable and readily available.
Additionally, used tractors rarely hold any technology on them. Thus, you could consider your local mechanic for repairs. Most of all, used rigs are easy to customize.
You see, a farmer from Minnesota recently documented himself retrofitting a 1979 tractor with satellite-guided automatic steering. The outcome was mind-blowing.
Do tractors hold their value?
From the look of things, tractors hold their value mainly because they accomplish all their roles and responsibilities. Made specifically for ranches, rigs excavate and haul tons of dirt, not forgetting about the thousands of haystacks that need transportation to the barn daily.
Moreover, tractors hardly break down. Created using high-quality parts, the rigs prove to be reliable on smooth terrain and the open field. More so, used rigs are low-maintenance.
Their aftermarket parts are easy to secure. Additionally, you could do all the repairs yourself fast. That said, it’s quite clear that rigs hold their value over the long-haul, primarily when adequately maintained.
And the most impressive models to-date include the
- John Deere S combines
- Apache AS self-propelled sprayers
- MacDon C Series corn headers
- New Holland BC 5000 balers
- Case IH Steiger tractors and more.
What is the most expensive tractor in the world?
Since 1892, thousands of tractors have rolled out of production. With various models having come out of production over time, the following have stood out as the most expensive.
- Case IH Quadtrac 580
- Case IH Quadtrac 540
- John Deere 9620RX
- New Holland T9.700
Anyways, the Case IH Quadtrac 620 tops the list on this one. With a 628 horsepower engine, the colossus is suitable for sowing and tilling farms. What’s more, the rig features the latest HI-eSCR2 exhaust system, hence its high price.
Therefore, if you’re looking for a farm machine with the best performance and consumption values, the Case IH Quadtrac 620 is it. The rig will undoubtedly traverse any terrain and finish any task.