Torvy
Super Member
A factor many don't know or understand is elasticity of Supply or Demand.
Fuel is fairly inelastic, there are not good substitutes so we pay what we must.
Tractors are more elastic than fuel as some people could use an alternative for their needs or put off purchase indefinitely. (those of us not planning to live off of our farm incomes). The rush to buy now is partially fueled by the expectation that prices will continue to rise.
With durable goods, like tractors, you are unlikely to see significant price drops. What you will see in a few years is that dealers will deal more as demand will taper off. The base prices will not go down unless we have a period of deflation. Of course various policy decisions could swing all predictions into a tizzy.
This is a broad inflationary cycle. It is not limited to tractors or trucks. It will not fix itself and since there is some denial going on, don't expect action to curb it much for another few years. This type of cycle pushes everything up. 'prices' will not return to normal. You will likely see prices come down as a percentage of income, but only after inflation is dealt with.
Fuel is fairly inelastic, there are not good substitutes so we pay what we must.
Tractors are more elastic than fuel as some people could use an alternative for their needs or put off purchase indefinitely. (those of us not planning to live off of our farm incomes). The rush to buy now is partially fueled by the expectation that prices will continue to rise.
With durable goods, like tractors, you are unlikely to see significant price drops. What you will see in a few years is that dealers will deal more as demand will taper off. The base prices will not go down unless we have a period of deflation. Of course various policy decisions could swing all predictions into a tizzy.
This is a broad inflationary cycle. It is not limited to tractors or trucks. It will not fix itself and since there is some denial going on, don't expect action to curb it much for another few years. This type of cycle pushes everything up. 'prices' will not return to normal. You will likely see prices come down as a percentage of income, but only after inflation is dealt with.