February 03, 2010
SIMPLICITY EQUALS SUCCESS FOR QUEENSLAND FARMER
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For Queensland vegetable grower Troy Parchert, the key to success is simplification - in both his farming operation and his approach to finance.
Troy runs Creekside Fresh Pty Ltd in Gatton, Queensland, with his father Barry. "Over the past three years or so, we've really streamlined the operation and now we're focusing on two main lines. By specialising we're able to do well with the crops we focus on and have a bit more time and flexibility, too," Troy says.
Their operation, which originally included about 10 crop varieties, is now built around two main crops, lettuce and cauliflower, and they have about 14 hectares dedicated to turf production. "It lets you do things better and it does mean more flexibility, too. It's not all about profit. We don't live to work."
Troy and Barry own 11 Case IH machines, including four they purchased at the end of the last financial year. Those most recent purchases are a Maxxum 110, JX 80 cab, JXU 105 and a JXU 85.
They already owned a Maxxum 255, JXU 90, two CX 90s, a CX 70, a JX 75 and a JX 65. Most of the machines are used across a variety of tasks and are in use six days per week during harvest, generally with seasonal employees at the controls. Their MX 255 is usually reserved for hoeing duties, while one machine is generally dedicated to herbicide boom spraying. The new JXU 105 is earmarked for this job.
Troy says he always chooses Case IH finance when he buys new Case IH machines. "We've always done it that way. We buy Case IH because we get excellent local aftersales service from Ag Requirements in Gatton, and we choose Case IH finance for new gear because organising it through the dealership is simple and the rate is competitive."
His decision to select a loan and goods mortgage for his purchases, which immediately transfers title to him, meant Troy was eligible for the Federal Government tax break incentive when he bought his new tractors.
"The tax break was a nice incentive for buying these new tractors, though it wasn't the main motivator for the purchase. We decided to order four new tractors at once because we thought it was the right time to lock in a good rate. Normally we'd probably only buy one or two machines at a time, but we saw a good opportunity here. The tax break is definitely a bonus that is worth a good few thousand dollars when you're buying four new tractors at once."
While the loan and goods mortgage was ideal for Troy, other products have different features that might be more appropriate for other operations. Some are more suitable for farmers looking for tax effective accounting strategies, some are ideal for those who want the latest equipment without having to worry about maintenance, and some are designed for improved cashflow. Case IH dealerships have a broad range of specialist equipment finance products on offer to suit customers' varying requirements.
