FarmTrac Troubles

[DavesTractor]

I would not be afraid to buy a FarmTrac, just so long as you are ok with providing your own warranty and perhaps waiting a bit for parts. Someone will provide parts support. As long as there is some $$ to be made, somebody will step up. For the right person, these tractors would be a geat deal right now. I do feel sorry for the dealers that own inventory or have inventory on a credit line. It is a losing deal for them, and not their fault. And of course the buyers that have seen their warranty vanish, but if I owned one, I'd keep it, not sell it cheap. Use it for years and get your money's worth out of it. Maybe not a good idea for a professional type use, but for the average homeowner it should be fine.

 

[albmn10]

Ned , your a new member here, some members may be unsure of your intentions. There are truly some who come to TBN simply to stir the pot so to speak. That said, i think your opinion on some of the Bobcat dealers not taking on the compact lineup is really premature. Remember Bobcat is now owned by Doosan, and they have invested heavily in Daedong. These are both South Korean companies and none of us know how deep their ties are. Id be willing to bet that non complying dealers will be pushed to the bottom of their lists so to speak.. Remember also that Bobcat really hasnt launched their full lineup, that will happen this spring when they will carry a full lineup of 20 to 50 hp compacts. This isnt going to shake the foundations of the compact tractor world but it will give alot more parts availability to both Kioti and Bobcat owners, giving more options to both. I apoligize for distracting the thread, i truly hope that the Farmtrac owners get a positive resolution to all this.

 

[a blurr]

Any news on FarmTrac lately?

Dave,
I have received some info on the Farmtrac happenings but am not at liberty yet to say much. I will say that my information says there are three companies that are seriously contemplating the buy out or take over or what ever they work out. Not sure if it will get split like pie or how it will happen. I was assured that all three are serious and they are not just talking. With that being said it could also change by Friday. My gut tells me there will be some sort of direction toward the mid to late March time frame.

 

[Slacker]

Back to Farmtrac as Dave indicated:

This is really too bad, these are good tractors. This is a very tough market in what are tough times right now:

Farmtrac Tractors

That was my dealer. Next closest dealer was 80 miles away.

 

[rogdan]

Any news on FarmTrac lately?

Is that what this thread is about??
Amazing what can happen when your away from TBN for a few months!!
My tractor company is belly up and apparently so is the "BIG BRAND" topics on TBN.

 

[John in Tarboro]

Hello, I live in Tarboro...Home of Farmtrac. I am not affiliated with Farmtrac but am following the story. Here's an article from today's newspaper The Daily Southern in Tarboro.


Published February 28, 2008 10:36 am

Farmtrac goes into receivership

BOB BENEDETTI
Associated Press


Since Farmtrac North America closed its doors on Jan. 18, workers of the Tarboro-based firm and dealers across the nation who sell its products have hoped to learn more about the company's status.


The farming implement manufacturer at 111 Fairview St., as recent as Feb. 5 had continued to keep approximately 180 Farmtrac workers under temporary layoff and still in limbo.

Farmtrac Chief Financial Officer Alton Cobb and Marketing Director Shenu Agarwal have failed to respond to calls and e-mail within a three-week period inquiring on the company's status. Farmtrac dealerships across also have reported the company's failure to respond.

According to a complaint filed Feb. 12 in Edgecombe County Superior Court, Textron Financial Corp. is seeking "not less than $13,309,056 plus interest plus attorney's fees of $1,996,358 and "additional contingent obligations"

According to a Claim and Deliver affidavit dated Feb. 12, the actual value of Farmtrac property is "approximately $12 million."

The complaint form also states that N. Hunter Wyche of Raleigh, a legal representative for Farmtrac, agreed to a request for Claim and Delivery hearing by Textron Financial. A claim and delivery is a legal action to recover personal property which is in the possession of another party.

Textron Financial Corp. local counsel David M. Warren said Wednesday that a Claim and Delivery hearing has not yet taken place. It is one of many options available to Textron and Farmtrac.

Edgecombe County Superior Court Trial Coordinator Bill Nichols said Wednesday that during a hearing Tuesday, attorney Jim Morrow of Tarboro was appointed as receiver for Textron Financial.

A receiver is appointed by a bankruptcy court or creditor to run a company. The responsibility of the receiver is to recoup as much of the unpaid loans as possible. Being in receivership is not an enviable situation for a company. Forbes Media explains that "Often receivers find that the best way to pay back loans is to liquidate the company's assets, which would effectively put it out of business."

Farmtrac originally signed into the repurchase agreement with Textron Financial on Oct. 6, 2006.

When asked about severance packages or buyout plans on February 5, Sales Manager Sushil Kaul conceded that "the company does not have enough funds" to consider those options.

So what are workers to do?

They can choose between riding it out or pursuing other employment.

The workers, presently on temporary layoff, are allowed to collect unemployment without being required to seek out new work. Once displaced workers take on a permanent layoff status, they become eligible for federal re-training and back-to-school programs. It is a wait that, depending upon Farmtrac, could last for up to 24 weeks.

Farmtrac sales and service franchises across the nation state they have not been contacted by phone or fax after multiple attempts to reach Headquarters. They have a costly stock of tractors that customers are unwilling to purchase new tractors without manufacturer warrantees and support. Others dealers report being unable to locate parts to keep their customers' tractors operational.

 

[rascoil]

All I can say is that I have a 8060DT with a bad motor with less then a 100 hours on it. I cant get nothing done. It is setting at a shop torn apart. They have 2 motors in the factory, but no one will let me get one shipped. I think they are all poor business people. I am going to get my 27,000.00 back one way or the other. The dealer here has went out of business 2 months ago. He cant be found. So right now my opinion of Farmtrac is not that good. But let me ad that Mr. Flowers has gone out of his way to help me. He is a Farmtrac Tec and I know he is not getting paid for all that he has done for me. But if I have to I will be glad to pay him for his time. I just want to know how can a company have such good employees and not keep them informed. I know about Mr. Morrow he is in charge now. I have been told this. He is the only person that can allow me to get my motor. I have emailed Him and I hope to get this problem took care of. I will keep you all posted about my tractor. I love this blue tractor and hope to get it fixed and back into the field.

 

[MessickFarmEqu]

Bobcat is now owned by Doosan, and they have invested heavily in Daedong. These are both South Korean companies and none of us know how deep their ties are. Id be willing to bet that non complying dealers will be pushed to the bottom of their lists so to speak.. Remember also that Bobcat really hasnt launched their full lineup, that will happen this spring when they will carry a full lineup of 20 to 50 hp compacts. This isnt going to shake the foundations of the compact tractor world but it will give alot more parts availability to both Kioti and Bobcat owners, giving more options to both. I apoligize for distracting the thread, i truly hope that the Farmtrac owners get a positive resolution to all this.

This is not the first partenership that Bobcat has done, if it does not make them money they will drop Kioti right away. They've done it with several companies in the past. I would not make too much of this relationship till it stands for a few years.

 

[Farmwithjunk]

As we look at yearly financials of all the players, keep in mind that recent years have been very good to the tractor market, especially the compact and smaller utility market. These financial reports don't reflect the future. And the past they do represent is quickly becoming a distant past. As much as I'd like to convince everyone including myself that the situation with our economy isn't going to get much worse, I truely believe the bottom is just beginning to fall out. If that happens, it's not about who builds the best tractor, or who has a strong customer base. It'll be about which companies have the least debt or the best handle on managing their debt, and who has the brilliant management in place to deal with a steadily delcining market. At the very best, IMHO, things will remain slow or stagnent for some time.

There will be more "FarmTracs" before things get better.

 

[TBDonnelly]

The one thing I believe we owe the Farmtrac tractor owners is to stay on topic about Farmtrac. They're lots of folks checking in on this thread anxious to hear the latest developments about Farmtrac. I know they appreciate it when they don't have to sort through all the chaff.

Neil, Several folks clammering for new "B" series tractors in the Kubota Forum. I hear them calling you.

Don

 

[Bob_Young]

Naahhh, TB, there's folks checking in here for the chaff as well. It's possible to learn a lot from the off-topic forays. I came pretty close to being a FT owner this year. If this had held off another 6 months, there might've been a FT/Escort/Ford in the barn.

Like those old blue dawgs. Hate to see 'em go.
Bob

 

[TBDonnelly]

Naahhh, TB, there's folks checking in here for the chaff as well. It's possible to learn a lot from the off-topic forays. I came pretty close to being a FT owner this year.
Bob

I agree, there is lots to learn from the off topic forays. However, TBN has LOTS of forums that cover numerous topics and this one happens to be about Farmtrac Troubles. It's just not polite to the core Farmtrac folks to continually highjack a thread and go off topic.

.....and I do apologize to the group for going off topic.....yet again.

Don

 

[Farmwithjunk]

I agree, there is lots to learn from the off topic forays. However, TBN has LOTS of forums that cover numerous topics and this one happens to be about Farmtrac Troubles. It's just not polite to the core Farmtrac folks to continually highjack a thread and go off topic.

.....and I do apologize to the group for going off topic.....yet again.

Don

Most of us don't consider discussing how and why FarmTrac became OffTrac as off topic. Comparing their plight with other companies in similar circumstances isn't hijacking IMHO. The thread IS about FarmTrac, however, the FORUM is about "All Other Brands".

At this stage, there isn't much new to add regarding the situation, other than a lot of speculation.

 

[TBDonnelly]

Most of us don't consider discussing how and why FarmTrac became OffTrac as off topic.
I would agree with that statement.

At this stage, there isn't much new to add regarding the situation, other than a lot of speculation.
Exactly......excellent point.

Thank you.

Don

 

[Bob_Young]

This situation raises some sobering questions about the future of tractors sold by the less-established brands (the future of more-established brands is another topic). No one wants to see their $10K-$20K investment relegated to a back corner of the barn (or the woodlot) after 10 years or so because a needed part isn't available.

It's true that some have access to facilities that allow them to make their own parts, while others are expert scroungers or know of a machine they can cannibalize. But at some point, it's just going to become too much trouble to continue and the tractor will become essentially scrap....probably well before it's worn out. The tractors were, after all, purchased to help us do our work and solve our problems. They weren't purchased to add to our work/problems.

For now, at least, FT owners can support their Long designed machines with Montana parts and their Ford clones with the Ford aftermarket suppliers. But how long will this continue? With a serious economic downturn, Montana and many others could become casualties. In a bad economy, who knows what'll become of the aftermarket suppliers; from the selection of products they sell, it seems they cater to the tractor restoration hobbyist market.

It's true that a FarmTrac 300 (for example) and a Ford 8N are both tractors and capable of many of the same things. But it's a mistake to assume, that 15 or 20 years from now, today's FarmTrac (or Montana or Mahindra or Jinma or Kioti or....) will be supported the same way the 8N is now. For one thing, the number of different models and designs available today exceeds that of the 8N era by orders of magnitude. Even with healthy and willing aftermarket suppliers, support of such a wide variety of makes and models long term could be well nigh impossible. And we know from the 8N that, with decent support, a tractor's useful lifetime can easily exceed 20 years.

The point of all this, for me at least, is that the attractive deals available from the less-established brands become considerably less attractive when this is fully taken into consideration. It's true that, with the wrong guy at the helm at JD, Kubota, or NH, a replay of the IH fiasco is possible....but it's still much less likely than the disappearance of a smaller brand from the marketplace. This unfortunate affair has been an eye opener for me, a former potential FT buyer.

Going into an economic downturn, as we are now, tractor buyers would do well to consider the tractor company's health/commitment along with the tractor specs and the dealer. The financial statement lesson we got from Ned Farlinger and the warnings issued by Neil Messick and others shouldn't be ignored.
FWIW
Flame suit on
Bob

 

[DavesTractor]

The one thing I believe we owe the Farmtrac tractor owners is to stay on topic about Farmtrac. They're lots of folks checking in on this thread anxious to hear the latest developments about Farmtrac. I know they appreciate it when they don't have to sort through all the chaff.
Don

Probably good advice at this point.

 

[bluechip]

It's true that a FarmTrac 300 (for example) and a Ford 8N are both tractors and capable of many of the same things. But it's a mistake to assume, that 15 or 20 years from now, today's FarmTrac (or Montana or Mahindra or Jinma or Kioti or....) will be supported the same way the 8N is now. For one thing, the number of different models and designs available today exceeds that of the 8N era by orders of magnitude. Even with healthy and willing aftermarket suppliers, support of such a wide variety of makes and models long term could be well nigh impossible. And we know from the 8N that, with decent support, a tractor's useful lifetime can easily exceed 20 years.

Flame suit on
Bob

I think it would be a mistake to assume that ANY color tractor will be suported like the N model Fords... In this age of outsourcing, brand name will mean little 10 to 20 years from now. Don't believe that? try finding parts for a HInomoto made Massey. With Yanmar and John deere putting a little distance between themselves (some even thought John Deere OWNED Yanmar) I wonder how parts availability will be for the "green yanmars" if that relationship continues to change... My point is that it matters little what brand, it matters more what manufacturer. In this day and age those are two separate considerations.

Darn it, now I have gone off topic, and I'm neck deep in this Farmtrac situation.... Getting back on topic: LS, Escorts and Same tractor manufacturing will continue (with or without Farmtrac) so there is little chance the Farmtrac tractors will end up in a corner of a barn because parts cannot be sourced. IN fact the only real affect is the warranty.... and a third party warranty from someone like FailSafe will mitigate that concern as well.

 

[dancce]

Chip,

Great point about FailSafe---or someone like them, that are in that type business. They could generate a lot of business in this fiasco.

dancce

 

[SESS]

As a dealer of Farmtrac in Florida, I started reading this thread because of the title "Farmtrac Troubles" and then got lost in the many pages of "other topics". As with real life-there are many types, sizes, prices of tractors just like there are many types of cars, RV's, homes, politicans and most of all people! Everyone will have a different opinin on tractors, cars, RV's, etc and should not feel hesitant to have an opinion. I wish this thread would get back to the main topic-Farmtrac Troubles. I have searched the internet far and wide looking for information about Farmtrac and have found some good information on this site. I appreciate the opinions that have been offered with Farmtrac and the first hand knowledge that has been offered-good, bad or otherwise. We as dealers have alot to loose-worse then the financial hit we are taking, but that of our reputations!! We did not become Farmtrac dealers because we did not believe in the product. We feel that they are good tractors and yes I would 100% agree, their demise is more management isues. All tractors have their troubles. With that said, I hope to get solutions in the near future for the consumers as well as all the dealers involved in this headache!

 

[bluechip]

I have learned that a Farmtrac dealer council has been (re)activated and is involved in the proceedings at Farmtrac. Farmtrac dealers should be getting some email updates from this council from time to time. If you are not, pm or better, email me sales@artrac.com with name, address phone and email for your dealership and I will be happy to forward it to a council member. I am not a member of this council and am posting this on my own, but I'm sure they want to include all involved dealers.