how producer profitability affects equipment renewal

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how producer profitability affects equipment renewal




Disc cutter with conditioner.


© Provided by Clarín
Disc cutter with conditioner.


With each new generation of machines it is about lowering production costs and increasing productivity. It is a constant process since mechanized equipment is applied to agricultural production. And it is an ongoing process.


Seeder with pneumatic seed dosage, electro-hydraulic transmission and tractor with automatic pilot.


© clarin.com
Seeder with pneumatic seed dosage, electro-hydraulic transmission and tractor with automatic pilot.


Currently there is talk of produce more food and goods for society, tending to use of inputs in a more rational and effective way. AND respecting the environment.

In this sense, it is necessary to take into account that in the production of the field the results are achieved by complying with the rhythms of natural cycles. Cycles that are practically unchanged, at least in the short term. The time to make a ton of grain or a ton of meat is stiff, and for capital to be immobilized in that time, confidence in the economic system is needed. You already need to be intrepid enough to risk money considering the weather and market unforeseen. For them there is insurance, which at least in part mitigates the big changes.

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Also to moderate these changes, in the economies of the most technified countries, the producer is generally helped by the states. It is known: the hardest investment in capital, labor, knowledge, technology, time is done; all that remains is to help correct major deviations.

The objective is to ensure the production of food and goods on the one hand, and on the other, prevent people from leaving their place of work and residence in the face of poor economic results and seek their livelihood in large cities.

But In the Argentine economy the winds tend to blow against. To graph the statement, as an example, we can review soybean production, one of the main ones in our economy, although clearly not the only one.


Sprayer with peak cut and pulse width modulated valves.


© clarin.com
Sprayer with peak cut and pulse width modulated valves.


It turns out that the gross income for those who grow soybeans (yields from the crop for the price of the product) is around 1,190 U $ S / ha. A yield of 3.7 tons per hectare with a price of 321.60 U $ S / tn. Of that value, the producer leaves 33% for the State as export duties. With the remaining 67%, expenses for harvesting, marketing, supplies, labor, farm rent and other taxes (profits, gross income, check tax) are paid.

Therefore, when the costs and results of some field activities are reviewed, such evidence cannot be ignored.

If you know that profitability is the relationship between profit and investment necessary to achieve it. Is the relationship between what has been achieved and the effort made to achieve that result. At school, it is the grade achieved in relation to the hours of study.

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Part of that effort is money for machinery-related expenses. In general terms, Between 20 and 25% of that effort goes to machinery-related expenses. Without export duties, that percentage would be between 13 and 15%.

To this percentage of the cost it is convenient to add the expectation generated by the Confidence in an investment when the risk taker is sure that marketing conditions will not change at some point in the production cycle.

Examples of new equipment that lower costs and / or increase productivity can be seen in all areas.


The technology applied in the forage silo increases the productivity of the herds significantly.


© clarin.com
The technology applied in forage silo increases the productivity of the herds significantly.


Among them, we can mention the forage mowers that cut by discs with small blades and that include a conditioner. These replace propeller cutters. The object is to achieve a higher volume of hay of better quality per unit area and unit time.

In tractors, the models with closed-center hydraulics, better-stepped gearbox and radial running are better than the tractor with open-center hydraulic system and running with diagonal fabrics.

In sowing, machines with pneumatic seed dosage and electro-hydraulic transmission are spreading. And they replace the models of mechanical dosage, transmission with drive wheel and gearbox.

And also more and more people know the Autopilot benefits and so the seeders with mechanical marker arm are gaining space. For this, it is necessary to increase the area with satellite and cell phone signal.

See also: Agricultural machinery: they analyze a swap plan, better financing and accelerated amortization

It is also known that a variable rate fertilizer or a sprayer with nozzle cut and nozzle flow adjustment keeping the droplet size constant, are more productive than constant dosing machines for the entire application.

Likewise, it is evident that harvesters without automatic grain quality control, or glue loss control, they are replaced by the new models with autonomous adjustment of the threshing and cleaning organs.

All the mentioned advances are really nothing new and some have been on the market for some time. The point is Why are they not accepted at a higher rate by the producer?. The reasons are various, but a key is if each improvement is paid with the result of its benefits.

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The incidence of direct costs in production – among which are those charged to machinery – and the confidence placed in the marketing conditions of farm products, partly define the pace of investment in machinery. And this is beyond the availability of credit, since the important thing is in profitability, which makes sustainability.

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