Part 10/16:
Farm machinery exemplifies the capital challenges faced by modern farmers. A tractor built in 2000 can cost around $600,000 today, and even older models like Swanson’s experience rapid depreciation. The cost of financing land, equipment, seeds, fertilizer, and other inputs has soared in recent years. High-interest rates further amplify these expenses, forcing farmers into difficult financial trade-offs. As a result, many are forced to draw down assets or modify their operations to maintain liquidity.