Yes New Farm Equpment needs a Restart button

[SASKFARMER3]

Just been watching auctions and USA farmers in General. Wow is new Iron Over priced. Yes companies will throw the workers out of work for a while and shut down lines. Yes they will cheap out on stuff that is in the base price. Yes they will but as long as they can they will keep the price up.
Some one explain to me why RED GREEN OR BLUE tractor is worth 750,000 down. Yes I know the Dollar but how did a tractor that I cash paid for fully loaded in 2012 go from $298,000.00 to around 600,000.00.
Really what's changed in four years. Similar Cab HD lighting Big pump and Fancy new style tires plus weights up the Ass H$%Le.
Ausction sale price is down to normal with in one to two years. So unless your adding debt each time to your super purchase most aren't paying off 300000 in three seasons. (first payment is 6 months out).
So to Deere Case and NH I think a Reset is in order.
But as long as some farmers think there getting a deal the shit show will continue.
Drills don't get me started!

[SASKFARMER3]

The notion that USA farmers are purchasing is Bull shit. Yea they bought swathers at 12000 at RB converted to 7800 USA that was a deal but big ticket not happening.
Also Versatile is Picking up sales with lower valued tractors. Yes Versatile but if they would keep the new color lots would be back hitting the fields.
Also some one explain one thing Farmer buys a drill from company at 700000 dealer gets it back two to three years and then takes to RB auction or where ever and it goes for $84,000.00 If I farmed like that we all know what would happen.
So is the margins that fricking high on New.

[farmaholic]

SF3... They will "PROGRAM" them down to a level that will move them. But seldom do these guys want to give up what they "gained" in the "retail" price.

What a ****ing fairytale!!!

[furrowtickler]

At the end of the day a tractor worth $200,000 will give you the same yield as the $600,000 tractor.
New tractors don't wear out in the first 3 years, but there value does. properly maintained they can last 20 plus. Good used tractors hold their value very well, s/f your tractor you paid $290,000 for will still be worth $200,000 in 3 more years.
I agree the biggest hit seems to be big air drills the past few years, more so this year than ever.
Any new machinery is taking a huge hit in that first 3-4 year range, more so now as you pointed out with prices skyrocketing. It's quite simple 30% depreciation on $700,000 hurts a lot more than 30% on the $300,000 4 years ago. Keep it for 10 or more it will not hurt as bad lol.

[Quadtrack]

Some big guys are or have been determined to stay on warranty with major stuff but that seems to have hit a wall last year when dealers wouldn't trade. I can't fix computer shit either and downtime is frustrating. The new depreciation is way too high to keep trading now. I hope some keep doing it tho so there is good used to choose from. Learning to hate the new cab smell is how I think of it.
Are the precision drills a money pit after three four seasons? Don't have one so no experience. My young buck neighbor doesn't want to crawl around changing bushings and tips but says he can't trade either.
There is a readjustment taking place-can't continue otherwise. Good time to watch and wait imo.

[fjlip]

Who ever is taking the hit should eventually figure it out. Then iron will get more use, costs/acre will go down. Always said DEPRECIATION is the elephant in cost room. Till then someone suffers big time. Our 10-20 year stuff has APPRECIATED last while, great used stuff sells well. The 5710 worth nothing now, therefore ZERO depreciation, value might increase. There is a RIGHT size also, can be too big or too small for a changing market/farm size. Nothing simple. If buying enjoy, if selling oh well LESS taxes to pay! Exiting at WRONG time.

[farming101]

Maybe once reality sinks in we will see auction prices rise as spring sales proceed.
Good returns at the Lipton sale yesterday. Must be lots of money in the area

[SASKFARMER3]

Ha ha the Deere did well swather should of went higher at Lipton! Fun times

[farmaholic]

We don't flip often. The last New Holland(Flexicoil style) drill we had for 10 years. This 3320 we have now will likely be around a while too...not many acres get put on it per year. Swather will go a long time...same thing not a pile of hours put on per year. Got a new Versitile the same time we got the 3320... like furrow says, could last a lifetime. It's the combine I would like to keep more current...but I dabble in a brand that isn't that popular(kind of keeps you married to them, trade values against competing brand can be painful).

I worked with alot of older equipment in the past to get the land paid off first... now I want some comfort and less repairs at the tail end of my career... the kid's luck and benefit. LOL

[furrowtickler]

The 535 NH tractor at the PMT sale got almost what it was worth new in 09. That kinda sums er up on resale value of certain things.
A tractor everyone can use , a seeding outfit can be as individual as the the farmer who had it with very few buyers. That NH seeding outfit was the best buy by a long shot .
Most Combines though drop fast and hard at times.

[Grahamp]

We were looking at a new tractor this year and there is no way a red green or blue one would work. We were going to go used but ended up with a new versatile. The price difference was staggering.

[hobbyfrmr]

Wiseguy, there may be some truth to that. I own some 4800 series 4WD tractors. We put in air ride seats, autosteer and new radios. So far no catastrophic failures. One was pulling a 65 foot seed hawk with 2 fans before I bought it.
These tractors are nowhere near as efficient as new one, but they all sit in a shed for 9 months a year.

[furrowtickler]

Those new Versy's were definitely a very good buy compared to the big three.

[Richard5]

Jwab, your comments make zero sense

You say those farmers need to the write off. That could be but then those farmers are not very smart

$500,000 combine, 13% tax when fully written off - $65000 tax savings when fully depreciated - almost 8 to 1 ratio

Seems like a hell of a deal to me

[greybeard]

Appears to me to be simple supply and demand.
Dealers lots got 5x bigger in last 10 years. Row upon row of new sprayers, drills, combines.
All going out the door to farm the same land. As they say, they ain't make any more of it.
Only as many farmers.
Kind of like a Ponzi. Everybody was in.
Now everybody's out.