The parties agree that the values listed for cash, government farm program payments, and the Co op dividend are correct and the Court has used them. Unjustified expenses and capital expenditures. It is undisputed that Debtors needed to purchase a tractor in 1993. The problem arises from their large cash investment. In contrast to the replacement of cull cows and bulls that is done annually, tractors and other major capital expenditures typically are not purchased with cash or over a short installment period.
Some term of years is more reasonable.
In essence, Debtors are asking the unsecured creditors to finance the new tractor. Before Debtors make their disposable income payment, the parties may stipulate to another term of years for the tractor purchase. The term of years should be reasonable in light of the available credit at reasonable terms, the value of any trade-in, the life expectancy of the item purchased, and what the usual term of years is for such a purchase. The payment term is not a depreciation schedule, as used for tax purposes. If any party contests that six years is not reasonable and if an agreement cannot be reached, a separate evidentiary hearing on that issue may be requested.