New Tractor Sales Are Declining

[Sid Post]

Politics seem to creep into conversations no matter what the subject matter is. I see it in RV, ORV, Truck and other forums. I see it much more now in off-line conversations with family, friends and others. Why? Because a growing number of people today have real concerns, worries and anger with what's going on today in our society. They are very concerned about our future and discussing it is probably a normal human reaction.

Just to give an example that I personally have experienced ... my primary doctor started discussing politics during my routine check-up. Then my gastroenterologist went into extended political conversations during an appointment. Even my termite inspector brings it up. I bet some people are being medicated and self medicated just to try and deal with the stress.

Unfortunately I don't see this changing any time soon and will probably get worse.

Yes, politics distract from most conversations in life these days. People need an "outlet" to let off steam or to reduce the pressure and stress of everything from invasive politics in medical practices to strong personal feelings.

This affects any independent business owner whether your local doctor, plumber, tractor mechanic, farmer/rancher, etc.

 

[ddbackhoe]

lavish spending on a

I am all for lavish spending, as long as youre not including my money in your purchases.

 

[ovrszd]

As I have said before: Government policies affect the cost and availability of most goods in the public marketplace.

Sometimes it is just bureaucracy and, sometimes it is intentional government policy. Want more home ownership or less? Want cheaper or more expensive gasoline? Want people to consume less dairy production? Want cheap airfare?

Where I live, property taxes for public boondoggles in town are an issue. People who rent feel they don't pay property taxes and, city folks don't feel the impacts nearly as much as farmers and ranchers. This means the number of people wanting stuff they don't pay for or, pay comparatively little for are popular.

I'm not against the girls having a new softball stadium or my old high school getting a new football stadium. What I object are things like my old High School spending $5 million on a new football stadium in a town of ~1200 people that doesn't have a good library or computer lab. I get gender "equity" with the softball stadium but, that money could have been spent more effectively on a less extravagant softball field leaving funding for better IT infrastructure, more library books, and things like better Home Ec, Wood Shop, and Ag class resources and facilities.

Specifically, a school farm for the "girls" who don't have access to farm property for things like a show lamb, hog, or steer would have been awesome. The ladies are the future of farming for many families so, supporting them is important to me. How many will grow up to be professional athletes from the softball field?

And yes, I played sports in school too but, our soccer field was rather simple and the goals were a simple surplus pipe structure that didn't cost much! I can't do much for the lavish basketball courts and football fields of the boys' athletic programs but, lavish spending on a single girls' sporting facility does not make it equal, fair or, right either.

The school district I pay taxes to has three (3) Seniors this year. They just finished a $1.2M gym. 6th highest school tax rate in the State.....

 

[check]

The Kubota I thought I wanted was $116K a few months ago, today it is ~$88K.

That is still ~$12K more than in 2019 Pre-COVID but, reasonable I think considering inflation's effects today.

Wow, that is a $28,000 drop!

 

[Cahaba Valley Farm]

Wow, that is a $28,000 drop!

I would like to know if that was MSRP or the actual sale price.

 

[Sid Post]

I would like to know if that was MSRP or the actual sale price.

Hard quotes for delivery and consistent with the price calculator at the time on Kubota's website. At first, I thought I was getting a market premium "market adjustment" from the dealer but it was Kubota's pricing driving the change in my potential tractor.

Kubota lost me as a long-time Kubota customer with the pricing volatility, making my Kubota L4600 likely my last Kubota purchase ever. This created a hurdle for me to objectively consider an M6/M7 for my next tractor purchase. The cost and marketing from Kubota on big Ag tractors is way off IMHO.

I see other options in my future for any CUT or SCUT as well with high-quality options becoming available from other manufacturers and likely a lot of lightly used options priced reasonably as well.

 

[Lastkidpicked]

There's another reason for tractor sales declining, and we're seeing it more every year.

A lot of baby boomers worked hard in their younger days and later rewarded themselves with compact tractors. Or began to have physical limitations and compact tractors with attachments made working on their property more enjoyable.

Around here these same folks are beginning to downsize, and are in more of a selling mode than a buying mode.

 

[Sid Post]

There's another reason for tractor sales declining, at least around here.

A lot of baby boomers worked hard in their younger days and later rewarded themselves with compact tractors. Or began to have physical limitations and compact tractors with attachments made working on their property more enjoyable.

Around here these same folks are beginning to downsize, and are in more of a selling mode than a buying mode.

Great point. In my Massey search, I'm looking for one with front suspension because my back isn't what it was in my youth. The Mercedes articulated tractor I ran in Germany had coil suspension on all four corners and was a joy to use.

A Massey with the loader accumulator for loader bounce and front suspension should be a great match for me my current health status.

 

[rScotty]

The school district I pay taxes to has three (3) Seniors this year. They just finished a $1.2M gym. 6th highest school tax rate in the State.....

I went to high school in a county where only 13% of the people have a high school education, but 100% of the property owners still have to pay school taxes. Sure the taxes are low, but they aren't fair.
rScotty

 

[rScotty]

Yes, politics distract from most conversations in life these days. People need an "outlet" to let off steam or to reduce the pressure and stress of everything from invasive politics in medical practices to strong personal feelings.

This affects any independent business owner whether your local doctor, plumber, tractor mechanic, farmer/rancher, etc.

To avoid the distraction, you could simply be optimistic about all the political platforms, energy, the environment, and the whole future of the world. That pretty much derails more than half of those discussions, and feels good too.
rScotty

 

[jyoutz]

I went to high school in a county where only 13% of the people have a high school education, but 100% of the property owners still have to pay school taxes. Sure the taxes are low, but they aren't fair.
rScotty

This is a situation where I think there is room to rethink how school taxes are assessed. It’s all about taxable value in the district and not necessarily just. One example is a small multiple community area where I once lived. Two school districts, one with the power plant and a manufacturing facility, the other strictly residential. Of course the district with just residential properties has a higher tax rate than the other to finance similar school facilities and programs. In my opinion, assessments need to be based on statewide values and distributed based on per capital students per district. This would be far more equitable, however there would no doubt be lots of opposition based on “local control.” There’s no perfect solution.

 

[Lastkidpicked]

A Massey with the loader accumulator for loader bounce and front suspension should be a great match for me my current health status.

Sid, you are a perfect example of how I justify new equipment purchases:

"The cost of those loader forks is less than the co-pay on back surgery." I actually buy many attachments based on that fact alone.

One example is a small multiple community area where I once lived. Two school districts, one with the power plant and a manufacturing facility, the other strictly residential. Of course the district with just residential properties has a higher tax rate than the other to finance similar school facilities and programs.

If you'll allow me to get my geek on, I can give you some behind the scenes info on that.

Back when I was volunteering for town councils and school boards, we would be in a position where a manufacturing facility would ask us for something. A variance for land use, or rezoning a nearby property so the plant could purchase it for expansion.

We would jump at that chance to ask for something back. We often came back with, "That sounds fine. Would you give us 1% of your increased sales for our local schools?"

They were always so quick to say "yes" that we sometimes thought we should have asked for more. But no need to be greedy as we wanted it to be a win-win situation.

 

[Gator6x4]

I laugh at all those that think zero percent interest is free.
Figure out this puzzle, zero percent interest, or 5000 dollars off.
Unfortunately now the sellers are not offering the 5K off any more, but trying to make even the cash buyers pay the hidden interest.
I,m finally starting to see private sellers adds which states they cann,t afford to make payments any more. Unfortunately, a lot of those sellers are upside down on their loans, so they are going to take a financial beating if they want to get out of them.

And the financial institutions holding the paper are going down faster then the titanic.

 

[Gator6x4]

Yes it is. Compared with the economy of the last 25 years, this one is not as good. Compared with the economy of the last 50, this one still looks remarkably good. We are still cruising down easy street.

I will say that the amount of negativity in the midst of so much wealth and opportunity puzzles me.
I wonder where that came from, and why it is so popular?

rScotty

Careful. Crossing over into the political arena.

 

[Yander]

There's another reason for tractor sales declining, and we're seeing it more every year.

A lot of baby boomers worked hard in their younger days and later rewarded themselves with compact tractors. Or began to have physical limitations and compact tractors with attachments made working on their property more enjoyable.

Around here these same folks are beginning to downsize, and are in more of a selling mode than a buying mode.

Hadn't thought of this but it makes sense. My dad did exactly that 2.5 years ago. Went from 20 acres and a BX2200 to a small house in town with a neighbor mowing his yard.

We will all be there some day at varying degrees and ages.

 

[5030]

Was at my dealer on Monday. The compact tractor segment is stale but the ag segment is booming.

 

[Yander]

Was at my dealer on Monday. The compact tractor segment is stale but the ag segment is booming.

Someone posted a Tractor Mike video of him going over new tractor sales and this is what he called out also. Small tractor sales trending down but large tractor Ag sales are trending up.

Could this be farmers trying to offset bad years with an equipment purchase that they could depreciate over a five year period. I'm not a farmer, so I'm asking. What do some of you who do farm think would be driving ag sales up?

 

[5030]

With me, it has to do with full depreciation more than anything else. 5 years and it's time to replace.

 

[Hay Dude]

Someone posted a Tractor Mike video of him going over new tractor sales and this is what he called out also. Small tractor sales trending down but large tractor Ag sales are trending up.

Could this be farmers trying to offset bad years with an equipment purchase that they could depreciate over a five year period. I'm not a farmer, so I'm asking. What do some of you who do farm think would be driving ag sales up?

Could be,…Could also be the time of year and leasing becoming the rage would be my guess. People leasing now more than ever as an alternative.

 

[Torvy]

Could also be the fact that real farmers need their tractors and most of the rest of us can wait.

It also makes sense because during the great trouble, Ag sales were down and Cut sales were up.