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Sure you can. They don't care about farmers because farmers are a smaller percentage of their business each year. When Private Equity buys all the mega-farms, t
by snarf21 4y ago
Sure you can. They don't care about farmers because farmers are a smaller percentage of their business each year. When Private Equity buys all the mega-farms, they won't care about having to rent tractors from JD. Actually, they would prefer it because you can CapEx a maintenance contract instead of putting it on OpEx. It does mean that there will be an ever growing opportunity for a smaller tractor company that actually does care about farmers but JD knows where their bread is buttered and they don't care about the little guy.
- adolph 4y agoThat seems a kinda conspiratorial stretch for a phenomena that has a simpler possible explanation: they see maintenance as a growing revenue source.
- salawat 4y agoIt's not conspiratorial at all. After a certain size, and upon getting a CFO that'll actually pay attention to things like that, this is a 100% incentivized way of doing things. It's not conspiratorial in the mustache twirling sense, but it is 100% an unambiguously desired outcome of how our tax laws and accounting principles are currently structured. A system is perfectly tuned to generate the outcomes it does. If you don't like those outcomes, you have to change the system.
- thrdbndndn 4y agoWhy are we making a distinction between (indie) farmers and mega-farms? They are all farmers, do the farmers' thing. And the latter is more efficient. It makes sense (and IMO is better) for a tractor company to cater for the latter.
- ask_b123 4y agoWhat are the benefits of a maintenance contract being CapEx rather than OpEx?