New Tractor Sales Are Declining

[TimberFarm]

The economy is strong as hell.
Lets see if that ages as well as his other proclamations. (Poorly)

It is for corporations. Corporate profits are through the roof. That's one of the major reasons why we have inflation.

 

[Gale Hawkins]

I think some non farmers are posting about a subject they don't grasp.

Counting on another to make sure your paycheck doesn't bounce is a comfort many will not give up.

 

[TimberFarm]

My new tractor no computer, no emissions.

My inlaws had one like that as a lawn ornament in their front yard. No rubber tires on the front though.

 

[Hay Dude]

Not necessarily. It sure helps high priced brands keep making money. As long as you and others believe it, they can sell for more.

I believe that Fendt makes a better tractor than the other brands.
I believe Krone makes better hay tools than the other brands.

Neither have 1/10th the dealer network of JD or Kubota or CNH.

 

[Hay Dude]

The farmers I know are Eternal Optimists.

You have to be or you couldn’t farm.

 

[Hay Dude]

I think for many of us, work was a necessary evil to get to some financial goal. Farming as a source of wealth (not all success is financial) is not typically a thing. Most of the money goes into land, equipment and livestock. Farmers may get rich on paper, but be short of cash. Few successful farmers came into it from the outside. Most were born into it and inherited the resources needed to get started (including the know-how). I think it would be rare to find someone who started farming from outside the industry and made enough money from farming to leave it at a young enough age to have a 'dream' career. (Note, I said 'from farming')

I worked in banking, not because I dreamed of it as a boy, bit because I fell into it, was good at it and made a healthy living from it. More importantly, I met my wife in it and she has made more than I have. This financial success allowed me to teach. Like farming, it is a calling, not a career. It is considerably easier than farming, however. The end goal was always to have enough to retire early and live on the land in our dotage. For us 'farming' will give us wealth in our hearts, not in our accounts.

I’m completely self made, expanding into other crops, and doing ok.
My wife is a 20 year public school teacher. No, teaching is not in the same league as farming.

 

[Hay Dude]

Some careers are more than just a means to a ways. If a man is a farmer or a rancher, they are so at heart. There will be nothing else that will nurture and feed him like that career does. New farmers are not farmers in the traditional sense. Traditional farmers are born into farming. If there is a roof overhead, food on the table, tractors in the barn, crops in the fields, and rain on the way. They are successful. And that just means good times for them because God knows there have been bad times getting to the good times. The hours are long, The work is hard. The pay can be very low. We all like to eat. God bless the farmers.

You get it. You really do.
I will add this: We like the same things any other person does too. We go to sports events, we like to dine out sometimes, we like to fix up our homes, we want our kids to succeed.

 

[Torvy]

It is for corporations. Corporate profits are through the roof. That's one of the major reasons why we have inflation.

Corporate profits affect inflation much like gnats affect an elephant.

Inflation is almost entirely a function of money supply. Corporate 'profits' are more an effect of inflation than a cause. The numbers are bigger, but costs rise for them, too.

I think in the coming months/years you will see profits fall and businesses fail as skilled workers continue to retire and consumers cannot afford to buy goods. There will always be some that do well in a downturn.

 

[Torvy]

I’m completely self made, expanding into other crops, and doing ok.
My wife is a 20 year public school teacher. No, teaching is not in the same league as farming.

I think you are the exception, not the rule. I'm pretty sure I indicated they are not in the same league. Real teachers are called to it like real farmers. That is where the similarity diverges. Unfortunately, bad teachers can still make a good living, bad farmers, not so much.

 

[Cahaba Valley Farm]

Again, you are so naive. By your own description in the bold print above.

From your description, your family is several notches below Doug. Not in a bad way. Just in a small way. At some point the assets need to be diversified and invested where they can be protected. Doug is a Master at that. You might see a land transaction in the paper next week where he sold some land. And then you'll see a transaction where he bought some land. He does so based on profitability. He owns approximately 17,000 acres of tillable farm land. I have no idea how many thousands of acres of timber, pasture, hay land.

Your successful operation farming family members would very much enjoy visiting with him. And he with them. Neither would consider the other in a bad light. And certainly wouldn't consider him an absentee farmer.

Edit: Forgot to mention the derogatory "inherit a large farming operation" comment. No he did not. Joined the Marines out of High School, served for three years. Came home and started building his farming enterprise. His Dad often criticized Doug for fear that he was going to go broke. Doug bleeds farming.

In all fairness Richard, I don't think this is the typical farmer. This is not to say all farmers are poor and struggling but they certainly aren't buying mansions and flying in jets around the world either.

 

[Cahaba Valley Farm]

There are additional factors that determine if a product is “better” to a buyer than just manufacturing quality. For example, dealer network support and parts support. There are many colors of well built tractors, but only two where I live that have the dealer shop support and parts. It is worth it to me to pay the premium price to buy these products.

This is exactly right jyoutz. There are many factors to consider what makes one brand better than another brand. The usual tell tale sign that a brand is at the top of their industry is their real estate holdings. The brands that have the best real estate are almost always the most successful.

I will add in that I was watching a video that Neil Messicks did a while back about a Boomer 50 and he stated in the video that though the Boomer series is made by LS, the warranty and backing of it is done through New Holland which adds a level of credibility and security that the LS brand does not bring.

 

[jyoutz]

I know it's hard to know someone only from comments on a forum. Doug is not "in real estate" and he most certainly doesn't "farm as a hobby". To describe what I told you about him as a "side-hustle" is naive on your part. At their peak they planted 25,000 acres per year. This year they were down to 19,000 acres. Hobby......

He is more of a corporate farm manager than a daily farmer.

 

[ArlyA]

Just bacause some people farm larger acreages, doesn't mean they are not a family farm.

 

[Torvy]

Just bacause some people farm larger acreages, doesn't mean they are not a family farms.

I 100% agree. I don't know anyone making money purely farming that spend enough time away from their farms to have recreational properties all across the world. I know many who have multiple farming properties across the country. Larger acreages are a key feature of profitable farming.

 

[ovrszd]

You have to be or you couldn’t farm.

Absolutely. My friends aren't done harvesting and they are already spending money feeding next year's crop.

 

[ovrszd]

In all fairness Richard, I don't think this is the typical farmer. This is not to say all farmers are poor and struggling but they certainly aren't buying mansions and flying in jets around the world either.

And I never indicated they were. A large piece of Doug's current net worth is because he never stopped pushing. Continues to push today. Always looking for growth opportunities. It's not for the faint of heart. In his 40s and early 50s he lived on 3-4 hrs of sleep per night. Kept a bowl by the bed to catch the bloody puke from stress. I love him as family. I never envy him and am in no way jealous of him. Very proud of him. He's not an absentee anything.

 

[ovrszd]

He is more of a corporate farm manager than a daily farmer.

Again, you miss.

 

[ovrszd]

Just bacause some people farm larger acreages, doesn't mean they are not a family farms.

Absolutely!!! Wish I'd said that.

 

[ovrszd]

I 100% agree. I don't know anyone making money purely farming that spend enough time away from their farms to have recreational properties all across the world. I know many who have multiple farming properties across the country. Larger acreages are a key feature of profitable farming.

It's my belief that once you reach a certain level wealth is perpetual. Regardless of source. And most times the original source is irrelevent.

 

[Hay Dude]

I 100% agree. I don't know anyone making money purely farming that spend enough time away from their farms to have recreational properties all across the world. I know many who have multiple farming properties across the country. Larger acreages are a key feature of profitable farming.

You need to farm a lot of acres to be the sole provider for a family. In MY area, it’s especially difficult, with well above average prices for everything and higher taxes to deal with.

Sometimes looking back, and can’t believe I coached High School football and High school mens lacrosse for decades and still got my work done. There were times when I would watch opponents film while driving my truck on my I-pad, or coach a Friday night game until 12 AM, go home and sleep 4 hours, and get up for work the next day, bales out for cows or whatever had to be done.