New Tractor Sales Are Declining

[5030]

The funny thing about what he (Torvy) said is invest it but there isn't anywhere to invest it right now. The equities market is no good, the bond market is crashing, mortgages are going way up which prevents purchasing income producing properties in real estate or doing low interest rate construction loans and the dollar is getting stronger by the day. There are no safe havens right now but spending it will take away your opportunity to invest it later when opportunities present themselves.

I'll just keep my rentals and maintain.

 

[Cahaba Valley Farm]

I'll just keep my rentals and maintain.

That's what were doing at the moment.

 

[zzvyb6]

How much of this is due to tractors having much longer useful lives than any other major machine or vehicle? I don't see people around here changing tractors every 3 - 5 years.

 

[Williy]

JUST % INFO:

https://www.aem.org/AEM/media/docs/Statistics/US-Month-Ag-Report-9-2022.pdf

willy

 

[rScotty]

How much of this is due to tractors having much longer useful lives than any other major machine or vehicle? I don't see people around here changing tractors every 3 - 5 years.

How much of what? Whatever it is, it may differ in different parts of the country. The only other major machine or vehicle I can think of are cars and trucks. Although they certainly last much longer than 3 to 5 years. Appliances, too.

But if you mean that tractors last even longer than other mechanical things I agree. At least for the utility and ag tractors. For compact tractors I think it is still too soon to know how long they last.

Utility or Ag tractors around here are like old trucks - usually just parked or scrapped when people want one with new features. There's nothing wrong with the old ones that couldn't be fixed fairly easily. I think that's just normal human nature for people to want something different and newer and more interesting....although come to think of it I could easily be wrong. When I mentioned the same thought in regards to jobs in this thread a few days ago, most disagreed.

rScotty

 

[ArlyA]

I asked a family memmber who farms how long they run there tractors and his response was in the 10,000 hours area.

 

[rScotty]

I asked a family memmber who farms how long they run there tractors and his response was in the 10,000 hours area.

Doing custom work from Texas to the Dakotas our family figured 6500 hours or ten years for tractors and less for combines and hay equipment. At that point they could still be sold for decent money.

Sometimes you just get a good one. We kept one grain truck so long it finally got retired. Last I heard it was still running fine. GMC.
rScotty

 

[TimberFarm]

Do you take advantage of every tax law?

Does anyone self employed take advantage of every tax law?

Of course we do. If not, we are naive.

Doug's operation has the equipment necessary to handle the volume of grain he harvests.

I am sure his operation qualifies for Millions of dollars in subsidies. I am sure he accepts them all. So would you.

If you live in the country and have fiber optics internet to your house you received a government subsidy. Funny how that works.

Just pointing out that the gov't subsidizes all kinds of industries.
So as the saying goes, "People in glass houses shouldn't throw stones".
Example: people criticize Tesla and the EV industry for getting all the subsidies and say they should have to stand on their own.
So, as far as your friend goes, how much of his income is from farming and how much from other investments? how much of his farming income is subsidies.
Subsidies take a big chunk of risk out of doing business for the industries they support.

 

[ovrszd]

Just pointing out that the gov't subsidizes all kinds of industries.
So as the saying goes, "People in glass houses shouldn't throw stones".
Example: people criticize Tesla and the EV industry for getting all the subsidies and say they should have to stand on their own.
So, as far as your friend goes, how much of his income is from farming and how much from other investments? how much of his farming income is subsidies.
Subsidies take a big chunk of risk out of doing business for the industries they support.

I don't know the percentages of his income. I do know his net worth has farming roots.

As to subsidies. Every sizable farmer I've talked to about government involvement wants the government out of it. The government regulates farming to provide the consumer with cheap food. If left to free enterprise a bushel of corn would cost $50. A standing butcher steer would cost $10,000. A gallon of milk would cost $25.

A farmer would much rather grow less and sell for more per unit.

 

[scootr]

In hard times people will pass on buying the new car or tractor. I know we had 2 4yr old trucks in 2008 due to be paid off and traded in 09. But times were similar to now so we just kept both of those trucks running and sold them off privately years later.