Tractor News What is driving up the demand for tractors?

[Torvy]

Do you think it needs a "fix"? It looks like a normal cycle to me. I think we last saw it to this extent in 2008 - and for roughly similar reasons although in a different financial sector.

Not close to the same. 2008 there was a correction due to over extension of loans.

This has its roots in pure spending of money that wasn't there. Money supply inflation but the underlying financial situation was not in need of an influx of cash. Sure, some individuals needed a hand up, but we spent WAY too much (as did some other countries). Essentially, they threw gas on an economy that had a ton of hot coals. Inflation was not really an issue in 2008. The economy was in recession to correct for earlier bad policy. The recovery took so long because of a Keynesian approach. Now we have a strong economy with the pilot light out due to Covid and the reactions thereto. The disproportionate response has us seeing the beginning of a raging inferno and they cannot even admit it is a problem. Deflecting it as a simple supply chain issue ignores the economic reality. If left alone, the market will always self correct, but since the fires were artificially stoking the fire, it will take a long time. They need to tighten up, but instead they keep wanting to spend more.

I truly wish more people had to learn econ in HS and college.

 

[ovrszd]

That will be at least 4 years. This will more likely take a decade to fix.

You think we can go at this pace for 4 years?

 

[ovrszd]

Farm state politicians are extremely powerful. And corn ethanol is a huge wasteful giveaway of tax dollars.

Iowa learned that the hard way.

 

[ovrszd]

Not close to the same. 2008 there was a correction due to over extension of loans.

This has its roots in pure spending of money that wasn't there. Money supply inflation but the underlying financial situation was not in need of an influx of cash. Sure, some individuals needed a hand up, but we spent WAY too much (as did some other countries). Essentially, they threw gas on an economy that had a ton of hot coals. Inflation was not really an issue in 2008. The economy was in recession to correct for earlier bad policy. The recovery took so long because of a Keynesian approach. Now we have a strong economy with the pilot light out due to Covid and the reactions thereto. The disproportionate response has us seeing the beginning of a raging inferno and they cannot even admit it is a problem. Deflecting it as a simple supply chain issue ignores the economic reality. If left alone, the market will always self correct, but since the fires were artificially stoking the fire, it will take a long time. They need to tighten up, but instead they keep wanting to spend more.

I truly wish more people had to learn econ in HS and college.

I was with you right up to the last sentence. Learning something in school, or the lack of that learning is not the problem. Pure human logic is the problem. The system has created a country of addicts. In an attempt to control society the system has created an addicted society that can not be controlled. Complete devastating reset is the only way to turn this train wreck around.

 

[MAX-24-Dean]

Then prices would climb through the roof.

Then farmers could afford fertilizer and fuel to plant the following year thereby decreasing prices?

 

[MAX-24-Dean]

Yes. Here in ME too. Tractors like a 1980 John Deere 950 4wD with a loader and say, 2500 hours in good shape was $3500-4500 in 2020 is $12000-14000 now. Old IH Farmall Ms that were $1500 are $4500. It’s stupid. People are sure buying up those 1980s diesels snd paying “Deerely” for them.

I was able to sell a couple of vintage tractors because of this.

 

[ovrszd]

Then farmers could afford fertilizer and fuel to plant the following year thereby decreasing prices?

I scrolled back thru a page of posts trying to find the post you had "picked" a statement out of. Didn't see it. So being the country hick from Missouri, I have no idea what you are talking about?

 

[4570Man]

But you said youd throw 50% of your money away.
I wouldnt

Prices aren’t going down and inflation isn’t going to reverse so it doesn’t really matter but if prices were cut by half or more and you had half as much money you’d be better off.

 

[ovrszd]

Prices aren’t going down and inflation isn’t going to reverse so it doesn’t really matter but if prices were cut by half or more and you had half as much money you’d be better off.

It's pointless.

 

[MAX-24-Dean]

MAX-24-Dean said:

Yes, manure from the chickens, cows and goats all composted with other items (straw, leaves, alfalfa meal). Crop rotation and cover crops to enrich the soil. Funny how old is new again. It is a lot more labor intensive though.
But I eat what I grow and I know the content of my food.
Also add organic dairy manure from a neighbors property.

So how many people can you feed?

I only feed our imediate family.

It is the FFA kids that get to feed the world (on 60 acres LOL). They use the property to learn about regenerative farming practices that have been used on our property for 4 generations. They get to learn how to take care of livestock (thier own) and learning about crop rotatation (thier own). Any moneys made by the kids is usually used for there future education. I try to get kids that are going into agticulture and teach them both methods of farming, regenerative (more organic) and traditional.
Very proud of one of the FFA kids that used our property, He became a veterinarian and has a large dairy.
He learned the value of persistance through the struggle of maintaining a small herd in a county that has ideal habitat for cougars. He has been very successful as a vet.