Tractor News What is driving up the demand for tractors?

[NoTrespassing]

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....

What evidence is there that demand is up? I only read 8 pages so far. Maybe someone has mentioned it. Obviously supply is down.

 

[K5lwq]

What evidence is there that demand is up? I only read 8 pages so far. Maybe someone has mentioned it. Obviously supply is down.

There was a 10.2% increase in new tractor sales for last year. I would say that demand is up as well as supply being down.

https://southeastagnet.com/wp-content/uploads/2022/01/US-Month-Ag-Report-12-2021.pdf

 

[5030]

Demand is up, supply is down that to me equals price increases along with the ever increasing cost of materials

 

[ovrszd]

There was a 10.2% increase in new tractor sales for last year. I would say that demand is up as well as supply being down.

https://southeastagnet.com/wp-content/uploads/2022/01/US-Month-Ag-Report-12-2021.pdf

I attribute that to cheap financing and inflation fear. The challenge will be paying for them over the next few years.

 

[5030]

I attribute that to cheap financing and inflation fear. The challenge will be paying for them over the next few years.

Especially if the economy goes south like I believe it will. I liken the current economy to a bubble and when that bubble breaks there will be a whole raft of consumers in a world of hurt. Today's economy is not sustainable and if you think it is, better buy some tangible metals like gold or silver. With every new piece of paper currency printed, the value of it drops. Yellen and the Washington blowhards cannot figure that out for some reason.

 

[ovrszd]

Especially if the economy goes south like I believe it will. I liken the current economy to a bubble and when that bubble breaks there will be a whole raft of consumers in a world of hurt. Today's economy is not sustainable and if you think it is, better buy some tangible metals like gold or silver. With every new piece of paper currency printed, the value of it drops. Yellen and the Washington blowhards cannot figure that out for some reason.

Had a middle aged farmer friend that bought a new tractor last year tell me, "nothing down, zero percent finance charge, I'll run it until I have it paid for with good years or I'll give it back if I can't pay for it with bad years. But meanwhile I've got a tractor with minimal upkeep costs to do my work."

 

[sea2summit]

All US made, and priced so that most people cannot afford them. And I can only afford a few of these things.

I think that is sort of a myth. I have two pairs of whites, one is nine years old now and I want to say I paid $425 originally and it’s had a $250 rebuild so $675 over nine years is ~$75/year but I think they have another two years before their next rebuild so probably more like $60/year. And I wear these boots a lot.

Now look at my uniform boots, I have two pair one for the office and one for the field so six months in the office then they go to field for six or so months then garbage. And it’s not garbage because they don’t meet uniform standards it’s garbage because they are trashed out. So I buy two pair a year at $175 a pair for $350 a year.

So investing more upfront is actually cheaper…but you have to research and do that wisely. On top of that you have to budget in that large expense/investment. Whew, no wonder more folks just get the cheap stuff.

 

[sea2summit]

What evidence is there that demand is up? I only read 8 pages so far. Maybe someone has mentioned it. Obviously supply is down.

I think there is pretty significant antidotal evidence that folks fleeing the cities last year bought a bunch of smaller tractors kicking off the shortage. Not sure the demand is still high or leveled off now but absolutely supply is down.

 

[Steppenwolfe]

Especially if the economy goes south like I believe it will. I liken the current economy to a bubble and when that bubble breaks there will be a whole raft of consumers in a world of hurt. Today's economy is not sustainable and if you think it is, better buy some tangible metals like gold or silver. With every new piece of paper currency printed, the value of it drops. Yellen and the Washington blowhards cannot figure that out for some reason.

 

[5030]

Had a middle aged farmer friend that bought a new tractor last year tell me, "nothing down, zero percent finance charge, I'll run it until I have it paid for with good years or I'll give it back if I can't pay for it with bad years. But meanwhile I've got a tractor with minimal upkeep costs to do my work."

How I bought my new Kubota round bailer last fall. 0 down no finance charges, of course I plan on paying for it not having it repossessed. That would ruin my credit.