New Tractor Sales Are Declining

[scootr]

Yep. Even my large farmer friends borrow the money to put in a crop.

I think the increased debt ratio for the average American is an indicator of their overspending. That is going to bite them hard thru the next couple years.

Some of those people are putting car payments, even groceries on their credit cards. Alot of people are not in a position to overpay for every little thing as is happening now.

 

[ovrszd]

Some of those people are putting car payments, even groceries on their credit cards. Alot of people are not in a position to overpay for every little thing as is happening now.

Well stated.

 

[scootr]

The real shame or crime (however you see it) here is that costs for daily living is up about 13% across the board over the past 3 yrs. The majority of Americans cannot absorb that increase.
The result is a national decline in the standard of living for average Americans. The govt. should be putting 100% of their $ and efforts into relieving the problem not exasberating it. Okay - I'm done.

 

[lman]

The real shame or crime (however you see it) here is that costs for daily living is up about 13% across the board over the past 3 yrs. The majority of Americans cannot absorb that increase.
The result is a national decline in the standard of living for average Americans. The govt. should be putting 100% of their $ and efforts into relieving the problem not exasberating it. Okay - I'm done.

They are printing more money to put in their pockets.

 

[CloverKnollFarms]

I’m glad we chose to go debt free in 2013… I’m just waiting for borrowers to feel pressure and give me a deal

 

[jezreel]

New “Large” Tractor Sales will begin declining when the Govt. puts the private Farmer and Rancher out of business by the misguided goal of Saving the Climate. Just look what’s happening in The Netherland. Well Documented. It’s happening NOW. And don’t think it can’t happen here.

Netherlands to buy out and close 3,000 farms to meet climate goals

The Dutch government is planning to buy out and close as many as 3,000 farms in the country, exacerbating an already-bitter dispute with growers as

www.washingtonexaminer.com

Hate to see the private ranchers get hosed by the 4 Major Meat Packers and Feed Lots, as well as the Farmers by the Uber-Huge farming conglomerates.

Buy Local if ya can. And, I don’t mean at the Local Walmart.

 

[ovrszd]

Buy Local if ya can. And, I don’t mean at the Local Walmart.

I'm going to the Locker this afternoon to pick up a half beef. We buy one each year from a family owned ranch 6 miles from us. The Locker is family owned and operated. Everyone involved calls us by our first names.

 

[jezreel]

I'm going to the Locker this afternoon to pick up a half beef. We buy one each year from a family owned ranch 6 miles from us. The Locker is family owned and operated. Everyone involved calls us by our first names.

If I don’t get a second deer this season, I’ll be going to Rail 19 Meats to pick up an 1/8th of a side. they have it divided into a variety of cuts, packed very nicely.

 

[ovrszd]

If I don’t get a second deer this season, I’ll be going to Rail 19 Meats to pick up an 1/8th of a side. they have it divided into a variety of cuts, packed very nicely.

We're Blessed with two Lockers within 15 miles. Both very cordial and easy to work with. I use Thomas Meats because I have for 40 years. David, the owner, is a very Spiritual man that I've known all his life. I hope him and the Locker outlive me.

 

[Cahaba Valley Farm]

The upcoming Fed 12/14-15 meeting will show whether they will continue raising rates to bring inflation down as previously announced or not. Their rate increases have slowed real estate transactions in middle Tennessee. My guess is it will take another year to see if the 2020-2022 run up in prices will reverse themselves or if we'll just have a stagnant market in which sellers ask too much and buyers can't pay what sellers are asking.

Or we'll live in an economy with higher interest rates for a while.

 

[Cahaba Valley Farm]

Very few people living dept free too. In fact records show the average American is carrying more dept today than anytime in the last 10 yrs

I can proudly say that I am one of the few that is debt free and has never owned a credit card in my life. Don't believe in it.

 

[Cahaba Valley Farm]

But for prices to fall, dealers would have to be willing to drop prices and take a loss. Many dealers just can't do that.

So I figure that dealers will be the first to be hurt. Their customers can do without a compact tractor, but the dealer cannot do without the customer. Dealers are the first ones in line to be damaged when customers can no longer afford to buy.

There is a dealer in my neck of the woods that has got himself in a bind. I knew what was coming for him when he tried to price gouge me back in the spring. My best advice to him is he better go to the nearest drug store and buy the biggest jar of Vaseline he can find because he's going to need it come next year.

 

[Hay Dude]

Another big factor already mentioned is interest rates.
The FED just announces another .5 increase in rates. A wonderful new 15 year high.
Thanks

That puts the typical loan for a tractor at about 8%.

 

[newbury]

The siren song of owning a CUT can be pretty strong. much the same as ATVs and UTVs.

My CUT's are my ATV's. I couldn't imagine scooping up and moving a yard of gravel with an ATV, or doing some serious ground engaging work like plowing or rototilling.

 

[2manyrocks]

I tried a couple of different ATVs, but sold them. For farm work, a small tractor is just too useful. For enjoying the property, I'd rather walk on the trails because I can take my time and there's no engine noise.

 

[Paystar]

I was just at my Kubota dealer yesterday looking at an M7060. I asked them if the trade values are declining at all?
He laughed and said we have to look up the original purchase invoices to make sure we aren't giving people more than they originally paid for them when they were new.

 

[scootr]

I was just at my Kubota dealer yesterday looking at an M7060. I asked them if the trade values are declining at all?
He laughed and said we have to look up the original purchase invoices to make sure we aren't giving people more than they originally paid for them when they were new.

My wife's aunt ranches on 30 acres. In 2021 she traded in a 14 yr old Kubota for more than she paid for it. And she bought a new 40hp L unit for what I thinkis more than it is worth too.
So many nice almost new tractors for sale out there. There is no need to buy at the stealership. When my dealer told me he would alot me "very little" on trade for the tractor I bought from him yrs ago, I decided to sell it on my own and buy used on my own. I'm happy with the trade.

 

[Hay Dude]

My wife's aunt ranches on 30 acres. In 2021 she traded in a 14 yr old Kubota for more than she paid for it. And she bought a new 40hp L unit for what I thinkis more than it is worth too.
So many nice almost new tractors for sale out there. There is no need to buy at the stealership. When my dealer told me he would alot me "very little" on trade for the tractor I bought from him yrs ago, I decided to sell it on my own and buy used on my own. I'm happy with the trade.

Funny….I’m seeing just the opposite on larger tractors. VERY little used inventory. I think Covid years (20-21) resulted in a LOT of buying.
Shelves are pretty bare in my buying category.

I think it’s because interest rates are at a 15 year high and people with existing tractors are holding onto them. They aren’t trading in on newer or new ones until rates come down to reasonable levels again.