Are tractors and equipment a good investment right now?

[CloverKnollFarms]

Good luck with your business!

Well, the wife will pay the bills while I carve out a hobby that provides fun money. Already educating myself on business, deductions, depreciation etc…. Tired of flying airplanes all week and never sleeping in my own bed.

 

[ultrarunner]

My brother is a smart guy and was number 2 in a firm with well over a billion dollars in the real estate portfolio and was tired of private jetting to holdings in 23 states…

He found farming really agrees with him and being a legitimate farm having sailed through audits he is able to make improvements through the business like water systems, fencing, equipment, etc…

His wife wasn't sold on the idea but has come around to it as ten years in it’s proven.

His tractors are holding value extremely well…

The little 1948 cub has been in tens of thousands of holiday pictures and earns its keep every year and he has turned down offers to sell… even the wife now said that tractor has been an excellent investment... now and in the future

 

[rScotty]

Back to tractors and implements and investments....

For investments I would go with John Deere, AgCo, and Caterpillar - but I woud buy their stock certificates rather than their tractors.

For the tractors themselves, the leaders I see are Kubota for all sizes of compact tractors, JD for long-lasting commercial machines, AgCo and Case IH for large Ag & big performance, and Yanmar for innovation and technology in smaller tractors. Lots of other choices if price comes into it, but that's a different subject.
rScotty

 

[Hay Dude]

I think Case-IH is being overlooked here. They have a very strong reputation around the world as a leader in agriculture equipment.

 

[rScotty]

Back to tractors and implements and investments....

For investments I would go with John Deere, AgCo, and Caterpillar - but I woud buy their stock certificates rather than their tractors.

For the tractors themselves, the leaders I see are Kubota for all sizes of compact tractors, JD for long-lasting commercial machines, AgCo for large Ag & big performance, and Yanmar for innovation and technology. Lots of other choices if price comes into it, but that's a different subject.
rScotty

I think Case-IH is being overlooked here. They have a very strong reputation around the world as a leader in agriculture equipment.

I agree. As a stock investment, Case HI doesn't come close to matching the other three, and I guess that caused me to overlook the excellenc of their machines.

Yep, I also think their equipment and tractors are top notch. It would make more sense to have lumped it in with AgCo - where Challenger & Fendt are made.

I'll see if I can edit the original.
thanks,
rScotty

 

[5030]

I’ve heard people say that the pandemic made many people think that life is short and fragile, and now they want to eat dessert first.

My ONLY comment to this thread is, if it's a pre 4 tractor, then it will be an appreciable investment. The rest are just depreciating investments and nothing more and their value is entirely based on what the economy does or don't do.

Both my pre 4 tractors are worth quite a bit more today than what I originally paid for them and no, neither are for sale presently because I'd never buy any emissions controlled tractor, ever.

 

[rScotty]

My ONLY comment to this thread is, if it's a pre 4 tractor, then it will be an appreciable investment. The rest are just depreciating investments and nothing more and their value is entirely based on what the economy does or don't do.

Both my pre 4 tractors are worth quite a bit more today than what I originally paid for them and no, neither are for sale presently because I'd never buy any emissions controlled tractor, ever.

5030, I'll amplify on that for some of the newer members.

What "pre-4 tractor" means is a tractor built before the new emissions standards of Tier 4 in 2012/2015 made such a change in our tractors. The change was not only because of the pre-4/post 4 emissions standards and equipment mandated, but also because the Tier 4 emissions corresponded to a major shift in manufacturing philosophy.

The shift had been going on for a few decades, but the change happened all at once along with the Tier 4 emissions. Earlier tractors were made to be run at moderate RPM and maintained by owners with average mechanical skills. Manufacturers put a lot of attention into making their products repairable by owners. Economy was achieved because the throttle was set to match the load.

About the time of the new emissions - roughly 2012/2015 - tractors began to be made to have a lot a extra emission equipment, required to be run at higher RPM, and deliberately require specialized dealership involvement even for basic troubleshooting and maintenance.

None of those changes was a direct advantage to tractor owners, so the older models became more valuable and it looks like they will probably stay that way. Whether any tractor is an "investment" is debatable.
YMMV
rScotty

 

[5030]

5030, I'll amplify on that for some of the newer members.

What "pre-4 tractor" means is a tractor built before the new emissions standards of Tier 4 in 2012/2015 made such a change in our tractors. The change was not only because of the pre-4/post 4 emissions standards and equipment mandated, but also because the Tier 4 emissions corresponded to a major shift in manufacturing philosophy.

The shift had been going on for a few decades, but the change happened all at once along with the Tier 4 emissions. Earlier tractors were made to be run at moderate RPM and maintained by owners with average mechanical skills. Manufacturers put a lot of attention into making their products repairable by owners. Economy was achieved because the throttle was set to match the load.

About the time of the new emissions - roughly 2012/2015 - tractors began to be made to have a lot a extra emission equipment, required to be run at higher RPM, and deliberately require specialized dealership involvement even for basic troubleshooting and maintenance.

None of those changes was a direct advantage to tractor owners, so the older models became more valuable and it looks like they will probably stay that way. Whether any tractor is an "investment" is debatable.
YMMV
rScotty

In my situation, my units are for work, not play so I'm good with what they are and they can be maintained wholly by me with little to no dealer intervention.

I have ZERO desire to ever own or make payments on ANY tractor I cannot maintain. That is counterproductive to what I do.

Essentially, the EPA took a reliable and efficient diesel engine and turned it into an abortion all for the sake of emissions mandates and all the while countries like China and India just keep on building coal fired power plants and emitting tons of pollutants while everyone else in the free world suffers. If you (not me) want a cleaner environment with reduced pollutants, then everyone needs to be on board and that will never happen.

One reason why I would NEVER consider buying a Chinese tractor (if they actually sold them here) or a Mahindra product because their philosophy flies directly in the face of emitted pollution mandates.

Furthermore, I am very careful not to purchase anything made in China today, if I can help it but in reality that don't always pan out. India is my second do not purchase from.

The problem with that is, today, many hard goods are no longer available for sale from countries or entities that are not Chinese or Indian.

The 'siren song' of cheap resonates with people here and elsewhere so people buy offshore products at an alarming rate and all that does is perpetuate those countries economic status and makes them even more powerful and does nothing for the people that buy their stuff.

 

[5030]

Whether any tractor is an "investment" is debatable.

That depends entirely on the end use I'd say. If a person is using any tractor or implement as a means for income (like me) verses a toy, the equation changes dramatically. I don't ever look at tractors as toys. They are here to perform work and make me an income. If I was to ever deviate from that philosophy, they would be gone, along with all the implements as well. If they are no longer needed, they won't be here. Real black and white for me. Besides, I can go work for a number of row crop farmers around here and have no responsibility for upkeep at all. I can become a 'placeholder' in a tractor seat and let them maintain them and get paid and have no worries at all.

 

[koshari]

I agree. As a stock investment, Case HI doesn't come close to matching the other three, and I guess that caused me to overlook the excellenc of their machines.

Yep, I also think their equipment and tractors are top notch. It would make more sense to have lumped it in with AgCo - where Challenger & Fendt are made.

I'll see if I can edit the original.
thanks,
rScotty

whats the go with challenger these day, were they not once Cats agri offerings? are Case still aligned with NH?? Dont fendt pretty much use Deutz/SDF engines? the alliances are sure hard to keep up with.