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Other than max log capacity, I'd say go with the lt35.....it'll be way better than what you have now.I've been contemplating a potential upgrade in sawmills..
LT35 vs the LT40
discuss....
I believe the main deck frame on the 35 is the same as the lt40, and it has the same hydraulics, (I think).
For a one man operation the most important thing is the hydraulics, imo.
If what you want is for your sawing to be more efficient and less laborious, the 35 will do very nicely......on the other hand, if an additional eight grand is not a big deal for you, then just buy the lt40.
For what I do, (if I could afford to upgrade) I'd but the lt40..... though an lt35 would be a big improvement in almost every way over my current lt40 non-hydraulic.
I don't know what engine your current mill has....mine has the 25hp Kohler and I have no complaints, it's got right around 1,500 hours on it and I've done nothing but oil/filter changes and a couple $25 fuel pump replacements.
I wouldn't spend money on more horse power over the standard 25hp, that's pretty much just for commercial/production sawing where you are pushing it hard for 8 hrs a day 5 days a week.
The end.