Are CUT Manufacturers pricing themselves out of the market?

[dodge man]

Let’s face it, a lot of people on this forum don’t need a tractor. I don’t make a living with mine like some people do. Haydude obviously is one that uses his for his business as do others.

On the other hand I don’t consider it a luxury item or a status symbol. If I climbed out of a huge hot tub to flip my 3 inch thick steak on a massive grill in my outdoor kitchen, those are luxury items.

 

[BlueKnife]

It’s all about cash flow. If someone has few other debts and an income that supports the loan, what’s the problem? People have work to do to maintain their land and saving for years doesn’t make sense. As I posted, it’s sometimes difficult or impossible to find deals on used equipment, and then often not the size/capability machine that is needed.

To each their own. The vast majority of folks who buy small tractors to "maintain" their land don't actually need to do most of that "maintenance". When they do, they can almost always find used equipment to do the job, or hire it done for far less than the payment on a new machine would cost. The world would be a better place if a lot fewer people "maintained" their land with machines. But, I respect their right to spend their money as they see fit.

Amish don't need a tractor to do hay, why can't he.
Guess he doesn't want to do manual labor

The Amish use plenty of machinery to do hay. Many use tractors, others use gas or diesel engines mounted to the baler and pulled by horses.

 

[airbiscuit]

I enjoy my CUT(s) more than I would any fishing boat

 

[Hay Dude]

If I didn't need tractors and related equipment to make a living, I would probably have smaller stuff and do odd jobs for people.
It can be a hobby all the way up to a way of making a living, but no matter which it is, the equipment has never been more expensive

 

[Cahaba Valley Farm]

One option used to be to create an irrevocable trust funded with a life ins. Policy on the farmer to cash out the non farmers. Don’t know if that is still a viable option, but the idea was to have the farm pass to those active on the farm and have cash pass to the others.

Another option is for the parent to specify which part of the farm goes to who without buying life ins.

Rarely good idea to leave farm to all equally hoping they will agree among themselves. Only takes one stubborn heir to mess it up.

Interesting I will have to look into this.

 

[ultrarunner]

Inflation only happens if people keep buying, example, I see eggs in the states for ridiculous prices and everyone piles them on the cart, why? Btw a dozen brown eggs here are 2.09€

Eggs if on the shelf are one dollar each so $12 a dozen.

175 years ago in California eggs also cost a dollar each in the gold rush towns… so zero inflation… right?

 

[jyoutz]

If I didn't need tractors and related equipment to make a living, I would probably have smaller stuff and do odd jobs for people.
It can be a hobby all the way up to a way of making a living, but no matter which it is, the equipment has never been more expensive

For me it is buy once, cry once. I’m not going to wear out my current machine doing work around my 20 acres. And maybe a few jobs for the neighbors. Nobody is going to come out here and maintain my road, plow snow, till the garden, or mow for me. I’m too isolated and my back has had enough of wheelbarrows.

 

[Portuguese Farmer]

Eggs if on the shelf are one dollar each so $12 a dozen.

175 years ago in California eggs also cost a dollar each in the gold rush towns… so zero inflation… right?

Must have been some kind of plandemic 175 years ago or the chickens were on strike

 

[BlueKnife]

I enjoy my CUT(s) more than I would any fishing boat

It should not even be possible to get a loan for a recreational fishing boat.

 

[BlueKnife]

Must have been some kind of plandemic 175 years ago or the chickens were on strike

Or there were more dollars than eggs.

 

[ultrarunner]

That is another option. But disagreements will happen over who is or isn’t doing their fair share of the work and someone will want to sell when others don’t. So leaving an entire farm to multiple heirs as tenants in common is going to result in conflict. People who think treating them all equally should think harder before doing that.

The traditional way was to eldest son capable and willing.

My grandmother was the oldest of 6 with no male siblings so she inherited and was also bound to care for in old age any never married sisters.

My grandfather was the youngest of 10 and by marrying my grandmother was able to have his own farm.

Now succession is much the same but any land sold must have proceeds evenly divided amongst all siblings.

I’m on title for the family cabin as having built it and the only one outside of my parents contributing cash.

My siblings insist it goes evenly to 5 grandchildren but I see no good outcome but a looming problem…

 

[ultrarunner]

Or there were more dollars than eggs.

Gold Dust

 

[rScotty]

Working on our land is a hobby we both enjoy. From firewood to growing things to landscaping - it's all enjoyable work and good exercise as well. In fact, that hobby is why we got a few extra acres in the first place.

We are older now, and having compact tractors has enabled us to enjoy working our land longer than we expected. Extra time we wouldn't have been able to do the work without help from the tractors.

I'm not sure how to calculate that much extra fun time against the cost of the tractor....but at the least it is another way to look at cost & value.

Are new ones too expensive? Yes, I think they are. Some CUT manufacturers have already priced themselves into failure. More may follow.
Can a person save by fixing an older tractor? Yes, right now we all have the choice whether to spend time fixing things or working to pay a debt. That's strikes me as a win/win either way.
rScotty

 

[jigs_n_fixtures]

My earlier memories pitching hay onto the wagon.

Never seen any estate where the heirs didn't fight over something and it's usually the proceeds they never earned in the first place. Human nature to greedy when it comes to unearned proceeds.

Better to pass penniless than leave anything for heir's to fight over.

Myself, I plan on blowing every cent I can on myself and my wife and leave this world like I came into it...

I subscribe to the Lee Iacocca inheritance plan: I gave the kids everything I could to get them off to a good start. I don't owe them anything. They can each pick a few things of sentimental or family history value. Furniture built by me, and the various levels of grandfathers, I've got a Croquinet board made by my great-grandfather, living room tables from my grandfather, and a captain's bed from my father. Plus, paintings, embroidery and lace from three generations back of the women.

When I pass my guns and reloading stuff go to the State Fish and Game, to auction at their annual surplus state property sale, with the proceeds to the Hunters Ed program.

Vehicles, clothes and the miscellaneous household stuff to the local animal shelter to auction off, proceeds to animal care.

House, and real property to the local hospice association. They can either keep it as a care center or auction it off.

Bank Accounts to scholarships at a university as scholarships for non-traditional students over thirty, who have worked or are working for ten years or more as engineering technicians and want to get their degrees.

 

[ultrarunner]

I subscribe to the Lee Iacocca inheritance plan: I gave the kids everything I could to get them off to a good start. I don't owe them anything. They can each pick a few things of sentimental or family history value. Furniture built by me, and the various levels of grandfathers, I've got a Croquinet board made by my great-grandfather, living room tables from my grandfather, and a captain's bed from my father. Plus, paintings, embroidery and lace from three generations back of the women.

When I pass my guns and reloading stuff go to the State Fish and Game, to auction at their annual surplus state property sale, with the proceeds to the Hunters Ed program.

Vehicles, clothes and the miscellaneous household stuff to the local animal shelter to auction off, proceeds to animal care.

House, and real property to the local hospice association. They can either keep it as a care center or auction it off.

Bank Accounts to scholarships at a university as scholarships for non-traditional students over thirty, who have worked or are working for ten years or more as engineering technicians and want to get their degrees.

Should be no problem especially if communicated how it’s going to be…

Wagon load of pitched hay… the adults pitched and I idled up and down the windrows…

About 10 years ago I told my 12 year old nephew to get on the seat of the Kubota L3800 and I would spot him and his mom was watching all this from afar…he has a gentle touch and did great and from that moment he appreciated the benefits of being an operator.

 

[quicksandfarmer]

The traditional way was to eldest son capable and willing.

My grandmother was the oldest of 6 with no male siblings so she inherited and was also bound to care for in old age any never married sisters.

My grandfather was the youngest of 10 and by marrying my grandmother was able to have his own farm.

Now succession is much the same but any land sold must have proceeds evenly divided amongst all siblings.

I’m on title for the family cabin as having built it and the only one outside of my parents contributing cash.

My siblings insist it goes evenly to 5 grandchildren but I see no good outcome but a looming problem…

This was the tradition in New England. Farmers would have big families, 10-12 kids. Oldest son would inherit the farm, the other sons had to find something else -- go west, go to sea, go to the city. The only way a daughter could stay in town was to marry someone else's oldest son.

There would be interesting discussions when the oldest son got to be in his late 20's and was ready to start a family and his dad was in his fifties and felt he still had a couple decades left running the farm. Plus his youngest kids were barely out of diapers.

My farm was owned by the same family from 1683 to 1950, passing only by inheritance, always to the oldest son. There was one owner who had daughters but no sons, when he passed it went to his brother's oldest son and the daughters got nothing.

 

[CliffordK]

Do you continue to buy bread? It costs a lot more than it did when we were married in 1970

I expect tractors to keep selling OK. One thing is that people today would rather make monthly payments on loans than sock the cash away until they have enough for the purchase.

Were you eating some type of fluffy Wonder Bread in 1970?

I buy very little bread. Occasionally I'll try a Bread Machine binge.

 

[CliffordK]

I'm not sure that tractors were ever "cheap". I'm definitely not in the new tractor market myself. But, there are people who can drop $30K into a new lawnmower and not even flinch.

I suppose everything is relative. I don't get very excited about the sub 20 HP market.

 

[NUTTERDW]

I say yes. I baulked and bought low hours used for 40% less than new.
Manufacturers have definitely crossed a line where a lot of people refuse to go no matter the product.

MY old 53 hp tractor failed on me so I found one just like it with 900 hours on it and bought it for a reasonable price. It still had the original rubber on it which I promptly switched out with tires and rims from my old tractor which were new. I have used the tractor for 18 months and have not had any problems with it. I will be giving it a coat of paint soon.

 

[WM75Guy]

Kubota is not coming off MSRP and has a price increase coming March 1. Working on a deal for a new Kubota RTV-X premium edition UTV. Checked with 3 Kubota dealers, none would come off MSRP. Finally got my local dealer to come off it $500. Traded in my 10 y/o Kawasaki Mule for a decent price. Waiting on final approval from Kubota to sign the papers for 0% for 36 months, instead of the $300 cash discount. Also, the $550 equine discount only applies if you go with regular financing at 10% with 10% down, not with promo rates. Said "No thank you."

The Mule was the last gas motor on the place. Tractors, ZTR, and UTV are all diesel, chainsaw and garden tools are all electric. No more toting 5-gallon gas cans to be filled, diesel comes off the fuel trailer.

Pics after I pick it up. They are adding the extras: roof, windshield, mirrors, and front & rear work lights.