"We can," Tom said. "I'll set up a priority service agreement. Anything breaks, you call, we respond."
Harold reached into his jacket and pulled out a checkbook. Tom Henderson's eyes widened. He had expected Harold to say he needed to talk to his banker. Needed to get things arranged. Needed to come back later. But Harold was writing a check right there.
"$60,000 deposit," Harold said, tearing out the check. "10%. I'll have the balance wired to your account the day before delivery. I want all five tractors delivered to my farm on the same day, fully serviced, fueled, and ready to work. I want your top mechanic to spend 4 hours with me and my crew going over operational details, maintenance schedules, and troubleshooting. And I want everything in writing."
Tom took the check. It was drawn on First National Bank of Broken Bow. The signature was clear and confident. This was real.
"Mr. Bergstrom," Tom said. "Can I ask you something?"
"Sure."
"How long have you been planning this?"
Harold smiled. It was the first time he'd smiled since walking into the dealership. "Since 1982," he said. "When I watched my neighbors lose everything. I decided then that if I ever got the chance to expand, I'd do it right. No debt, no risk I couldn't manage, no mistakes."
Tom shook his head in amazement. "Most farmers I know, they're leveraged to the hilt. They're borrowing to make payments on last year's borrowing. You're doing the exact opposite."
"That's why I'll still be farming in 20 years," Harold said. "And most of them won't."
The tractors were delivered on April 18th, 2000. All five of them, bright red with Case IH emblazoned on the sides, sitting in Harold's machine shed like a fleet of spacecraft. Michael stood there with his mouth open. The hired men, two local guys Harold had worked with for years, were almost speechless.
"Dad," Michael said. "I knew we were expanding, but this is..."
"This is what it takes," Harold interrupted. "To farm 4,800 acres professionally, you need professional equipment. This is what professionals use."
That spring, they planted 3,200 acres of corn and 1,600 acres of soybeans. The MX270s pulled the 24-row planter like it wasn't even there. The MX230s handled cultivation and fertilizer with ease. The MX210 kept up with the smaller tasks and ran for parts when needed. They finished planting in 17 days—faster than Harold had ever planted in his life.
The 2000 crop was good. Not spectacular, but good. Corn yielded 168 bushels per acre. Soybeans did 46 bushels per acre. At $2 corn and $4.50 soybeans, Harold grossed about $1.4 million. After expenses, he netted about $280,000. Not enough to cover the tractor purchase, but enough to maintain operations and start rebuilding liquid capital.
2001 was similar: decent crop, mediocre prices. Harold netted $310,000. The tractors performed flawlessly. Not a single major breakdown.
2002: drought year. Yields down 30%. But Harold had crop insurance, and he'd built enough buffer that one bad year didn't hurt him. He netted $180,000, even with the poor crop.
2003: better weather, prices starting to tick up. Corn to $2.45. Soybeans to $5.80. Harold netted $420,000.
And then came 2005. Ethanol happened.
The Energy Policy Act of 2005 mandated increased ethanol production. Corn demand exploded. Prices started climbing. By 2006, corn hit $3 per bushel. By 2007, it was at $4. By 2008, it briefly touched $7.65.
Harold's 3,200 acres of corn at $7 per bushel at 175 bushel per acre yields grossed $3.92 million from corn alone. Add in soybeans at $16 per bushel at 50 bushel per acre on 1,600 acres: another $1.28 million.
Harold Bergstrom grossed over $5 million in 2008. After expenses, he netted $2.1 million in one year. The tractors he bought with cash in 2000 were still running perfectly. The land he'd secured was now worth triple what he'd paid, and he still didn't owe anyone a penny.
Tom Henderson, the dealer who'd sold Harold those tractors 8 years earlier, stopped by the farm one day in 2009. He wanted to talk about whether Harold might be interested in updating his fleet.
"Those MX Magnums treat you okay?" Tom asked.
"They're perfect," Harold said. "Not a single regret. Best purchase I ever made."