Collecting Agricultural Equipment Wrecked or Salvage is Worthwhile

Some people just love to collect old agricultural equipment (wrecked or salvage).  However, there are some that turn their collection into a profitable business.

Owners say that the reasons why they are in the business of farm equipment salvage is because it pays the bills and they get a kick out of it.  They’re not in a “junkyard” business in a sense (despite the assorted salvage machines that they have), but they are actually supplying used parts for tractors and farm equipment.

Sources of Farm Equipment

This business provides service for the demand of farm equipment owners.  In a way, it helps solve a problem and be mutually beneficial.

You can gather your inventory through the following means:

•    By attending auctions that are held by the other farm equipment dealers – sometimes, these dealers want to dispose some agricultural equipment (wrecked or salvage) that they don’t want on their lots.
•    Also, you can buy from farmers with machines that they want to sell.
•    In addition, insurance firms may have a few burned or wrecked machines because they have just settled a claim.

Competition

Competition can be tough when you want to obtain good, salvageable machines.  Some bidding will become highly spirited when there are several yard operators that are vying for the equipments with parts that have high profitable demand.

From experience, you can immediately determine the value of the units that you want to buy.  Purchase only those agricultural equipment (wrecked or salvage) that have salvageable parts for you to sell.

Breakdown of Parts

If you can specialize in 10-25 year old machines, you will be offering an inventory to dealers and farmers that they seem to need most.  This is because an older unit is hardly worth repairing, while newer units still have adequate parts available.

So for example, you buy a tractor.  You can pass it to your crew (may be composed of only 3 people) who will systematically take it apart while cleaning and inspecting salvage parts.  Sometimes, good engines are sold as one unit while at other times they are stripped for future sale.  Final drives and transmissions are usually disassembled.

Then, agricultural equipment (wrecked or salvage) parts are usually stored on orderly racks and protected from corrosion.  Heavy castings and wheels (or those parts that are normally unaffected by weather) are stored outside.

Finally, unsalable parts have to go into a pile that will be picked up by the scrap metal dealers.  These kinds of dealers usually make periodic visits to farm equipment salvage yards.

Posted in Agricultural Equipment Wrecked or Salvage  on March 7, 2009 - 9:44 am by admin  |