Compact Tractor sales Off 31%

[HayDR]

The sky is not falling for everyone. The industry inventories are high for the sales volume. There will be some manufacturers in trouble with their cash flow. We could also have some more FarmTrac type situations coming if sales do not pickup soon. There will be some attractive deals coming from all the manufacturers.

AEM | Industry Trends - U.S. Ag Flash Reports: March 2008 Flash Report<br />U.S. Unit Retail Sales

 

[putt_putt_green]

I also notice this says 2 wheel drive. Who sells 2 wheel drive compacts under 40HP?

Some may be attributed to the weather. Winter stayed here longer in southern Michigan. I had snow on the ground every day in March. I would think most people get the itch once Spring hits. Of course, this doesn't apply to whole country.

 

[SESS]

I also notice this says 2 wheel drive. Who sells 2 wheel drive compacts under 40HP?

People in the South that use the tractors in nurseries to pull their tree carts around. We have no hills so its just flat! They also use them to pull mowers, don't need 4x4. That is our big seller.

 

[JerryG]

All tractors with smaller front tires are listed as two wheel drive even if they have front wheel assist. 4WDs are the big tractors with all the wheels the same size.

 

[MessickFarmEqu]

Things sure as heck are not off for us. Spring has sprung, a bit earlier than normal.

 

[lawn_king]

Things sure as heck are not off for us. Spring has sprung, a bit earlier than normal.

Same thing here. Spring madness is in full fury. My salesmen has promised me he will do everything he can to have my new kubota (GL 3540 HSDC ) ready for pick up by 4 23. He has so many new tractors to prepare for next weeks pick ups, he's pulling his hair out.

 

[RWolf]

Not for my dealer either. He can't keep enough stock. His business is primarily commercial and goverment.

 

[tjkadar]

Our local Kubota dealer is going out of business. I don't think it is because Kubota doesn't sell well in our area, but more because they are not a very good dealer. The dealership was set up by one of our local car sales conglomerate. The owner's son was burned out selling cars so he moved to tractors. Problem was he didn't know tractors.

Its tough to instill confidence in your customers when it is very apparent you don't know your own equipment.

 

[krackerjack9]

My Kubota dealer here seems pretty busy, they sold my old L3400 2 days latter, my nieghbor wanted to buy it but it was already gone.
Now the Manindrah dealer is very busy. I can remember when they only had a few tractors now its about 40 of them. Just in my little area where I live the Manidrah guy has brought out 14 tractors in the area, so my Kubota is a minority here along with a John Deere.

 

[Farmwithjunk]

Locally, we have a John Deere dealer with 5 outlets throughout the state. They seem to be thriving. Approx. 50% of their total sales is AG. MF dealers are doing well. Local NH dealer isn't the best. I'd hesitate to judge NH's status based on this dealer alone. Kubota dealers (2) in the area look to be holding steady. Kioti dealer shut his doors and dissapeared 3 months ago. He sold cheap (well under list) and had next to no service available. I'd say this was a dealer related failure as opposed to low market. FarmTrac dealer just south of here WAS thriving. Last I heard, he was about to go under.

USED tractor market is stronger than ever from what I've seen in this area. Auction prices are strong as is private individual sales.

Spring time has always been a good time to be selling tractors around here. Sales numbers are steady NOW, but with the over-all economy and fuel prices being what they are, I'd look for a rough summer. Values on rural real estate are dropping here. Lots of foreclosures in the newspaper. Gas prices have many scrambling to get back closer to their jobs. That can't HELP tractor sales I'd think.

Just a guess on my part, but this should kill off a lot of the weaker dealers, which in turn, should HELP the stronger dealers.

 

[scott_vt]

Good Afternoon CCI,
Not far from my Ct home we had a Jinma/ Farmtrac dealer who just closed his doors. Maybe twenty miles north of my Ct home we have a Massey Ferguson dealer who seems to be doing quite well, and another JD dealer about 10 miles away who also is doing well, I think alot of this has to do with what the dealers are selling and what kind of service support they offer their customers, timely etc... JMO !

Up at my Vt home we have a large Case IH / Kubota dealership that always seems to thrive no matter what, but they are totally surrounded by large farms and a number of smaller hobby farms, they pretty much cater to everyone so if one segment of their bussiness is off another segment picks up the slack !

All things being taken into consideration, with the economy being severly off pace I think everyone is going to feel the effects of the bad economy one way or another IMO !

 

[ChuckinNH]

I spoke with a salesman at a good Kubota / Simplicity / Polaris dealers recently, and he said that they had sold almost exactly twice as many tractors so far this year as they did at this time last year. Went to an open house at another Kubota /Case dealer last week and the turnout was really good! Of course, the food was too.

 

[MessickFarmEqu]

Yea, I am sure the bad economey is a regional thing. Gas is expensive, but beyond that I don't think anyone would think anything of it if the news people where not constantly harping on it.

 

[Nuru]

I hope that helps me on Monday whe I got for lower interest rate with Deere.

 

[lawn_king]

My new package, cab tractor,fel,forks,rotary cutter,weight box,pto spreader,stereo,auxillary 12 volt up front,etc. Was well over 30 grand. Im pleased kubota gave me 3.9 for 60 months!

 

[LarryRB]

Yea, I am sure the bad economey is a regional thing. Gas is expensive, but beyond that I don't think anyone would think anything of it if the news people where not constantly harping on it.

depends on how one looks at it, We just got 400 gallons of heating oil for a snappy 1450.00,, 3 years ago, the same 400 was near 700. Our electric starts at 42 cents per killowatt while Massachusetts, just 110 ft away, pays 18 cents for the same killowatt. And yes, the 8 homes on this side of the line did try to tap into Mass electric, I paid 458 this morning for diesel for my truck.. I'm on a fixed income and no one is willing to up that so, you cut back as far as one can and it still isn't enough... Selling is not an option either,, There are litterally hundreds of homes, most in the high 400 something thousand range that right now they cannot sell at mid 200 to 300 range, Banks are not lending money period.. A fe bad apples like Countrywide, that gave out a handfull of 140% value loans has made it impossible for anyone to get a loan now,.,., Regional, most likely.. it isn't pretty right now..

 

[john_bud]

The sky is not falling for everyone. The industry inventories are high for the sales volume. There will be some manufacturers in trouble with their cash flow. We could also have some more FarmTrac type situations coming if sales do not pickup soon. There will be some attractive deals coming from all the manufacturers.

AEM | Industry Trends - U.S. Ag Flash Reports: March 2008 Flash Report<br />U.S. Unit Retail Sales

Cough cough {Bogus} Cough Cough

I clicked on the canadian data on the site and they are UP 22% for wheeled tractors and UP 24% on under 40hp machines.

It's probably in that 90% of statistics that can be made to say anything 50% of the time when 35% of the people don't check the raw data.

jb

 

[Builder]

I can't imagine how tractor sales could be higher with the crappy economy. One would think that would usher in the "patch & repair the old tractor" mentality until the American economy improves.

I'm lucky enough to be able to stay busy, but some of my competitiors are ready to go under or are bidding jobs so low, they are just "paying bills" with what little they make.

Buddy of mine works for a huge home builder out of Maryland. They layed-off more than 3/4 of their staff and haven't built a home in 8 months.

 

[LAWALLSTRACTOR]

One of the lawn & garden dealers in the area has just about stopped his sale and is focusing on service as that part of his business is staying busy. (Patch & repair)

 

[Nuru]

My new package, cab tractor,fel,forks,rotary cutter,weight box,pto spreader,stereo,auxillary 12 volt up front,etc. Was well over 30 grand. Im pleased kubota gave me 3.9 for 60 months!

congrats on the deal. I am trying to get 0% for 48/mos. I wouldn't mind 3.9% for 60 or 72 mos.