New Tractor Sales Are Declining

[Hay Dude]

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.

 

[airbiscuit]

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.

 

[Hay Dude]

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.

 

[Cahaba Valley Farm]

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.

 

[Cahaba Valley Farm]

It’s ain’t 1986 when you bought a farm tractor with intentions of running it until it was completely worn out.

Maybe farmers should run 1986 models. They sure would last longer.

 

[Sid Post]

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.

 

[Sid Post]

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?

 

[Sid Post]

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!

 

[Yander]

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.