Interesting Opinion On November 2015 Value Of Deere Stock

[dsgsr]

Strictly as a consumer, I see Deere Stock falling in the future. The farms are getting smaller and the small land/tractor owners are growing, The quality of Deere equipment is failing. As a consumer of MY third small JD tractor (755, 4700, 5085M) I have experienced the quality of the engineering with each too be less each time. If this is where the market is heading and you make a less desired product it's bound to impact the bottom dollar with all the other choices out there.

David

 

[two_bit_score]

Strictly as a consumer, I see Deere Stock falling in the future. The farms are getting smaller and the small land/tractor owners are growing, The quality of Deere equipment is failing. As a consumer of MY third small JD tractor (755, 4700, 5085M) I have experienced the quality of the engineering with each too be less each time. If this is where the market is heading and you make a less desired product it's bound to impact the bottom dollar with all the other choices out there.

David

So small farming is the future of agriculture? Is that what you are saying?

 

[arlen4720]

Strictly as a consumer, I see Deere Stock falling in the future. The farms are getting smaller and the small land/tractor owners are growing, The quality of Deere equipment is failing. As a consumer of MY third small JD tractor (755, 4700, 5085M) I have experienced the quality of the engineering with each too be less each time. If this is where the market is heading and you make a less desired product it's bound to impact the bottom dollar with all the other choices out there.

David

I sure don't see farms getting smaller in the midwest!

 

[bigtiller]

I think he said the farms are getting smaller and bigger. And that JD is is driving it's self out of business.

That's not what I'm seeing in the heart of the nations corn belt.

 

[smstonypoint]

Here are data on the distribution of farm sizes (as measured by sales) from the 2007 and 2012 Census of Ag.

Steve

 

[npalen]

The farms in Kansas are certainly not getting smaller but rather the opposite. Years ago a section of land would typically have several homesteads. Today you can go for miles without seeing a single farmstead that isn't abandoned. It's a sad fact.

 

[quicksandfarmer]

Here are data on the distribution of farm sizes (as measured by sales) from the 2007 and 2012 Census of Ag.



Steve

I wouldn't think that farms with less than a half million in annual sales are a real factor in Deere's sales of new agricultural equipment. A half million may sound like a lot but once you net out costs it's barely enough to support a couple full time. I would say the real action begins with farms with several million dollars and goes up from there, which aren't even on the chart.

In Rhode Island, in order for the state to recognize you as a farm (farm plates, no sales tax, etc.) you have to have $10K in annual revenue. Interesting that 57% of the farms that the federal government recognizes wouldn't meet that standard.

 

[lamanated]

myself and at a friends work, we are finding prices on their machines is getting noncompetitive. cant see myself buying their stock. I bought a Kubota as it was $4K cheaper than the 1023, even tires and wheels at $400 for a complete set, couldn't be matched in JD. At his work, they have bought dozens of new Kubotas. JD were not dropping a nickle on their prices, so guess they didnt want the business,
JD parts were getting high also. a stupid cup holder, jumped from $14 to $30 this yr.

 

[arlen4720]

myself and at a friends work, we are finding prices on their machines is getting noncompetitive. cant see myself buying their stock. I bought a Kubota as it was $4K cheaper than the 1023, even tires and wheels at $400 for a complete set, couldn't be matched in JD. At his work, they have bought dozens of new Kubotas. JD were not dropping a nickle on their prices, so guess they didnt want the business,
JD parts were getting high also. a stupid cup holder, jumped from $14 to $30 this yr.

Kubota is obviously a serious contender in the small tractor arena, but the bigger picture for John Deere is, and always has been, heavy agriculture iron. They are extremely competitive in that playing field, and are market leaders. It's hard to draw any accurate conclusions regarding John Deere's future from a few members of this forum. It is 95% small tractors here. There is a whole nuther world out there with big agriculture, forestry, mining, and construction.
Even in the small tractor arena, if you look at the reviews on this forum, JD has a very favorable approval rating.

 

[Wobblin-Goblin]

Strictly as a consumer, I see Deere Stock falling in the future. The quality of Deere equipment is failing. As a consumer of MY third small JD tractor (755, 4700, 5085M) I have experienced the quality of the engineering with each too be less each time. If this is where the market is heading and you make a less desired product it's bound to impact the bottom dollar with all the other choices out there.

I agree.

My dad owns a JD 850 and we've looked at Green many times during purchasing cycles. As far as CUTs go, JD's design and engineering peaked with the 4000 Twenty series. We very nearly bought one (4520) a couple times, but the dealer situation was fubar, so we went Massey Ferguson instead. The CUTs that JD is selling currently aren't as good as what they replaced, IMO.