We have money to invest yet this year. My son wants a new or gently used self-propelled sprayer. Our model is 8 years old with no bells and whistles. Counting multiple trips, it covers 6,000 acres per year. Should we trade up?

Profit Planners panelists include David Erickson, farmer, Altona, Ill.; Mark Evans, Purdue Extension educator, Putnam County, Ind.; Jim Luzar, retired Purdue Extension educator and landowner, Greencastle, Ind.; and Steve Myers, farm manager with Busey Ag Resources, LeRoy, Ill.

Erickson: I try to develop a prioritized list of possible equipment upgrades so I am ready as opportunities become available. So, where does upgrading your sprayer show up on your list? The decision to upgrade equipment should be based on several factors, such as reliability, value and return for your investment. Use these factors, along with your prioritized schedule, to make your final decision.

Evans: If your current sprayer is OK and getting the job done, what value will be added with the newer self-propelled model? Is there something else this money could be spent on to better improve your operation? If the updated sprayer is going to return time and economic efficiency to justify the expense, then you will have to make that decision. Bottom line, make sure you invest money on hand in a good investment. 

Luzar: There are two teachable lessons here. The first is separating wants from needs. Wants can be driven by many factors: aggravation with downtime, desire for new paint, a feature only a new model carries. Wants can be elusive to quantify as to how much marginal value will be created. Wants are amplified when cash is available, and a lender doesn’t have to be convinced.

You and your son should take time to capture all the wants desired with a new sprayer. Then follow up with a list of needs for spraying 6,000 acres in an efficient, timely manner. My very basic rule of thumb is that the two lists should overlap by at least half. If wants cannot meet at least half the needs, review the decision.

The second lesson is placing a real value on “bells and whistles,” What does new technology provide with respect to increasing efficiency, reducing operating costs or improving spray application accuracy? New technology can become seemingly irresistible — but be objective and ask hard questions as to how it will provide value.

Finally, review cost of updating your current sprayer compared to cost of the new machine. You make a valid point that 6,000 acres of coverage demand an effective, reliable machine. By comparing options, you can make sure you’re getting the highest payback for your equipment investment dollars.

Myers: It appears you have good utilization of your current rig, and it is adequate. Whether new or a gently used trade, consider capacity needed, impact of new technology enhancements in terms of return with value and current utility of what you have. This decision applies to most machinery that is deeper into its life. So, to shop around for opportunity is wise, but you’re not necessarily required to act. It will occur someday, but is today the day?