New Tractor Sales Are Declining

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   / New Tractor Sales Are Declining #1,561  
I also believe that farmers could be giving up on Tier 4 tractors after warranty expires because they’re probably not in the mood to spend 15 large to start screwing with emissions electronics.

Also, Leases are typically 3-4 years and when those tractors are turned in, they need to be replaced. So a lot more sales/leases are happening.

It’s ain’t 1986 when you bought a farm tractor with intentions of running it until it was completely worn out.
 
   / New Tractor Sales Are Declining #1,562  
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.
My 40hp New Holland came from a vineyard in CA. The guy I bought it from was an independent dealer, and sold almost exclusively New Hollands. He got a lot of them from vineyards in CA when they came off lease. My guess is that leasing was tax advantageous, and that they wanted all their tractors to be newish so there would not be breakdowns during the harvest season. I got a tractor with 700 hours for a really good price.
 
   / New Tractor Sales Are Declining #1,563  
My 40hp New Holland came from a vineyard in CA. The guy I bought it from was an independent dealer, and sold almost exclusively New Hollands. He got a lot of them from vineyards in CA when they came off lease. My guess is that leasing was tax advantageous, and that they wanted all their tractors to be newish so there would not be breakdowns during the harvest season. I got a tractor with 700 hours for a really good price.

Fendt and others have lease programs with all repairs & maintenance included.
You never pay for anything but fuel, oil, grease. Heck you can even get maintenance if you want to pay more.
The amount of tractors being purchased this way is staggering. Farmers can no longer fix large systems in their tractors because of electronics/computers. That was a way they saved money. Now they are realizing it’s cheaper to stick it in the dealers face and make them fix it.
 
   / New Tractor Sales Are Declining
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#1,564  
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.
Kubota is definitely price gouging right now.
 
   / New Tractor Sales Are Declining #1,566  
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

The problem is that a lot of those discussions are related to direct negative impacts on those people and what it is doing to their family's opportunities.

It is hard for people to be optimistic when their paychecks are not able to buy the food it did in the past and the impact to their children's happiness when they can't go to the places they did in the past to enjoy things that they did in past.

The constant drone of the news telling them that they are oppressed or privileged, or not being treated or treating others fairly adds to the distress. To that, increased crime and where I live illegal immigration impacts.

I get being optimistic but, when you have no faith in the fairness of the current political system of racial and gender politics, equity pandering, public schools, congressional member enrichment (i.e. unfair access to financial benefits), and, similar issues that is a pretty hard aspirational goal for many people to meet.

In my case, my pension has been significantly devalued which is a direct impact on my optimism for the future and why I am working to capture equipment to supplement my retirement income. Bees and Tilapia won't do it alone but, bailing hay and related custom farming type work appear to be better options for me to do something I will enjoy and can do in my retirement years. Storm damage cleanup for people is something I want to be able to do as well since that is a recurring problem around here with high winds and tornados and frequent tree damage.

I am optimistic that I will be able to work with state and county officials to prevent my neighbors from flooding my lower pasture and destroying the public roadbed from the raised water table. I am also optimistic that the county animal welfare control will continue to stop two neighbors from animal hoarding and that I will have enough ammunition to kill the calf and chicken killing dogs they breed. I am also optimistic that I will be able to continue working with a retired Marine to kill the feral hogs in sufficient numbers to keep both our properties damage free.

At the moment, I am not so confident I can deal with the downed tree storm damage on the back of my "home" property in a reasonable timeframe with my current CUT L4600. The tree that is most concerning has a diameter of >50" and is partially buried in wet soil.

Things like this are encouraging me to buy a much larger ag tractor. This is also some of the reasons for declining SCUT and CUT sales because people like myself realize that SCUT and CUT tractors may be super handy for a lot of chores but, they simply don't work well for a lot of the work we do because they take too much time to complete or simply can't do what we need them to do.

SCUT and CUT tractors are different options for those people moving out from the larger cities that want a tractor to help them do things around the house and their relatively small properties. As noted, some of them are having various health-related issues so, a small front-end loader and other attachments make their little homesteads a lot easier to maintain.

As people feel the impacts of high inflation rates, there will be some reluctance to buy a relatively expensive "toy" for those same retirees who are feeling financial pressure in the current state of affairs. So market saturation of SCUT and CUT tractors and reluctance for new people to jump on to this trendy rural retiree homestead luxury.

All that being said, my B2601 isn't going anywhere anytime soon! The reality is that at some point, I am apt to sell that lovely tractor and pay someone to mow for me around the house! Someone like that will put pressure on the SCUT market pretty hard and as noted lead to declining new sales.
 
   / New Tractor Sales Are Declining #1,567  
Was at my dealer on Monday. The compact tractor segment is stale but the ag segment is booming.

There is a real push behind this for production agriculture to feel ever increasing numbers of people using fewer farmhands.

Farm families are following the trend of fewer children so, fewer "unpaid" farmhands and, production agriculture has mainly gone commercial with hired hands and no or much fewer owner-operators.
 
   / New Tractor Sales Are Declining #1,568  
Kubota is definitely price gouging right now.

Yes! And other issues like catering to hobby farmers. Their large ag tractors are functional for sure but, for similar money based on my recent shopping, I can get more tractor with better features for the same cost.

If Chey HD pickups were cheaper or more capable for the same cost compared to a similar Ford Super Duty or Dodge RAM, why wouldn't I buy a Chevy?
 
   / New Tractor Sales Are Declining #1,569  
Fendt and others have lease programs with all repairs & maintenance included.
You never pay for anything but fuel, oil, grease. Heck you can even get maintenance if you want to pay more.
The amount of tractors being purchased this way is staggering. Farmers can no longer fix large systems in their tractors because of electronics/computers. That was a way they saved money. Now they are realizing it’s cheaper to stick it in the dealers face and make them fix it.
Sounds like you are talking about John Deere tractors!

Their dealer Franchise agreements also drove most dealers out of the business. How many small dealerships can afford to inventory all the parts John Deere now requires?

I get the business model as a move from owner-operator tractor sales to, as you noted, large commercial farm leases with all-inclusive cost models and not having a tech on the farm to fix stuff and the huge costs that would bring in-house. The Massey 5700S I inspected at the dealership was in for a motor oil change!
 
   / New Tractor Sales Are Declining #1,570  
In my case, my pension has been significantly devalued which is a direct impact on my optimism for the future and why I am working to capture equipment to supplement my retirement income. Bees and Tilapia won't do it alone but, bailing hay and related custom farming type work appear to be better options for me to do something I will enjoy and can do in my retirement years. Storm damage cleanup for people is something I want to be able to do as well since that is a recurring problem around here with high winds and tornados and frequent tree damage.
My retirement plan is similar to yours in that I have been acquiring equipment and in the next 5 to 6 years I plan to start getting my name out there to do custom work for folks.

That will be my early 60s and it will hopefully help me stay in better shape.

By my mid-60s I hope to be semi-retired. I may do some work in my current field but I'm thinking 3 days a week instead of 5 and the rest of the time I will be running a bush hog, tiller or disc or plow. That's what I enjoy doing.

My next tractor purchase will be over 50 horsepower and enough PTO horsepower to run an 8-ft cutter. There is a decent possibility I will end up with the tractor I use on the farm now (my MILs) which is Massey Ferguson 1750M. I already use an 8-ft cutter behind it to mow all the waterways. But I'm not banking on that and I don't want to use it for my own personal use, as a business, so I'll probably be buying one.

I probably won't buy that new, it will be a bush hogging and discing tractor.

I will keep my current Yanmar for tilling and for smaller jobs for people who don't want a heavy tractor on their yard.

I look at it as an investment in my retirement.

I already did something similar when I was in my early thirties so I know it's not a big deal to do. My kids were still young and I was using all my weekends to do custom work not getting to spend time with kids. So I sold everything.
 
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