Tractor News What is driving up the demand for tractors?

[Reddogs]

Is it a real need for new tractors, or is it panic over supply as parts to put together new tractors got squeezed in supply chain. Or were prices held down by other factors. Why such a sudden increase....

 

[Hay Dude]

I think people are buying now because they think prices will be even higher later.
That goes for many big ticket items, but tractors have a lot of steel and have tires, both of which have increased dramatically in the last year.
One of my Square balers needs tires. They were $1275 a piece. Now they’re $1550 a piece.

 

[BnRidge]

Here, price increase was irrelevant. Recently retired, time to shift gears and move on. Workplaces have changed, I've changed. Is that a trend?
And inventory was nill, except for the one dealer an hour away.

 

[rScotty]

Here, price increase was irrelevant. Recently retired, time to shift gears and move on. Workplaces have changed, I've changed. Is that a trend?
And inventory was nill, except for the one dealer an hour away.

I think it is simply population trends, and not some conspiracy, manufacturing, or politics that is driving the shortage in tractors and parts right now.

Apparently being recently retired - or about to do so - is a trend for baby boomers. For that fairly large part of the working population it was becoming time to retire - but Covid made the decision easy for a lot of people at the same time.

Lots of boomers had long planned to end up living on a few acres in the country - and a tractor was always part of that vision.

As a generation, boomers have done well financially. Plus it's a normal part of retirement to realize that time has all of a sudden become more precious than the price of things.

Add these things together.... throw in Covid..... and you have a trend.

rScotty

 

[EddieWalker]

For me, I believe it's two things. First, while looking at used tractors, I saw them jump $5,000 in price all of a sudden. They have been sitting on the lots for months at the original price. And then they have the new price. I've never seen this before with anything that's used. It happened at multiple dealers, all over my area of East Texas. This sort of encouraged me to act sooner, rather then later. Add to this that manufacturers are struggling to get the parts that they need to make cars and tractors, and with the cost of fuel skyrocketing, I knew that inflation was going to force the price of a tractor up even higher if I waited any longer.

Second reason is that the shortage of products in the grocery stores is becoming alarming. Inflation has actually gotten to the point that I'm no longer buying ribeye steaks for my wife and I to have every weekend. Sadly, I haven't even been able to find them the last 3 times that I was in the grocery store. What used to cost me $20 in steaks is now $35. $15 more wont break me, but with everything else costing more, I'm spending $50 to $80 a more every week in groceries, and it's only going to get worse. I want a bigger tractor so I can get more done on my land, and start producing livestock that I can sell, trade and consume. Having a little bit of land means that I have the opportunity to do this, and buying the bigger tractor means that I can get more done then not having the bigger tractor.

On a side note, here in East Texas, the cost of a home with a few acres has gone crazy. I am not the only person that feels it's important to have a garden and some livestock. I believe that with so many people buying land, you will have a huge increase in people wanting a tractor to work their land.

I just saw that fertilizer has tripled in cost all of a sudden. Fuel has doubled. Raising livestock is going to cost a lot more money. I believe that prices are going to continue to increase on food, and I really have no idea how bad it is going to get, but I believe that it is happening and it would be wise to be as prepared as possible to deal with it.

I believe that the reason so many people are wanting a tractor right now, is exactly why I want another tractor, and why I'm willing to go into debt to get it now.

 

[Root Cause]

I think it is simply population trends, and not some conspiracy, manufacturing, or politics that is driving the shortage in tractors and parts right now.

Apparently being recently retired - or about to do so - is a trend for baby boomers. For that fairly large part of the working population it was becoming time to retire - but Covid made the decision easy for a lot of people at the same time.

Lots of boomers had long planned to end up living on a few acres in the country - and a tractor was always part of that vision.

As a generation, boomers have done well financially. Plus it's a normal part of retirement to realize that time has all of a sudden become more precious than the price of things.

Add these things together.... throw in Covid..... and you have a trend.

rScotty

I think you hit it on the head.

I sold my Harley, bought 5 acres, and a tractor last year. The dream was indeed ignited by Covid and retirement. No regrets either.

I also think that it has become a thing for homeowners to get a SCUT to do landscaping. Probably no different when people started buying riding lawn mowers. Nothing wrong with fulfilling the dream of digging in the dirt with your own backhoe. And, with all the newbies who have no experience, I suspect the need for parts went up exponentially as well.

 

[ovrszd]

I think it's a reflection of exactly how much we consume. Was no way to measure it when supply was fat. Now that things become less available we begin to see the true depth of our consumption as a nation.

 

[Hay Dude]

I think you hit it on the head.

I sold my Harley, bought 5 acres, and a tractor last year. The dream was indeed ignited by Covid and retirement. No regrets either.

I also think that it has become a thing for homeowners to get a SCUT to do landscaping. Probably no different when people started buying riding lawn mowers. Nothing wrong with fulfilling the dream of digging in the dirt with your own backhoe. And, with all the newbies who have no experience, I suspect the need for parts went up exponentially as well.

I think you are right, but strangely see opposite trends, too. I see less people working on their properties and hiring me to do the work for them. Now these are very wealthy people who bought up huge chunks of fam land and have no clue what they are doing so theyre in rare air.
However, also see smaller property owners (1-5 acres) sell the lawn tractor and hiring out lawn service. I live on a private road of 15 homes on very large lots and me and one other guy are only ones who cut our own grass. All others hire it out.

 

[sea2summit]

I think people are buying now because they think prices will be even higher later.
That goes for many big ticket items, but tractors have a lot of steel and have tires, both of which have increased dramatically in the last year.
One of my Square balers needs tires. They were $1275 a piece. Now they’re $1550 a piece.

I just put a deposit down on a baler today for that very reason. Plus with inflation it's not like there are many investments in non durable goods that will actually keep up right now so may as well not leave a ton in the bank.

Costs of everything are all going up, trickle down the end product price has to go up. I feel like I got pretty lucky with the deal I got but I've been calling all over the southeast for quotes and deals. There are still deals but they are getting dang hard to find.

 

[sea2summit]

I just saw that fertilizer has tripled in cost all of a sudden. Fuel has doubled. Raising livestock is going to cost a lot more money. I believe that prices are going to continue to increase on food, and I really have no idea how bad it is going to get, but I believe that it is happening and it would be wise to be as prepared as possible to deal with it.

I've spoken with two local farmers recently that are seriously considering not planting this year because margins are so tight that lack of rain or a storm at the wrong time would put them at too much of a loss to justify the work. It's a hard spot to be in I'm sure. I think a lot of small or 1st generation farms are going to fail this year and some farmers aren't going to plant or are going to plant more economical crops which may not be human food and next fall/winter the country is really going to start feeling that.

Just one wannabe's opinion.