Tractor News What is driving up the demand for tractors?

[Ledgemere Farm]

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

Me too. You still can’t get enough back to make reconditioned ones worth it though

 

[Hay Dude]

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.

True, but I wouldn’t be better off with 1/2 the money. My mortgage and other obligations cost the same as they did a few years ago.
Those are my major outlays of money, not fuel, food or tractors.

 

[Reddogs]

For me, I believe it's two things. First, while looking at used tractors, I saw them jump $5,000 in price all of a sudden. They have been sitting on the lots for months at the original price. And then they have the new price. I've never seen this before with anything that's used. It happened at multiple dealers, all over my area of East Texas. This sort of encouraged me to act sooner, rather then later. Add to this that manufacturers are struggling to get the parts that they need to make cars and tractors, and with the cost of fuel skyrocketing, I knew that inflation was going to force the price of a tractor up even higher if I waited any longer.

Second reason is that the shortage of products in the grocery stores is becoming alarming. Inflation has actually gotten to the point that I'm no longer buying ribeye steaks for my wife and I to have every weekend. Sadly, I haven't even been able to find them the last 3 times that I was in the grocery store. What used to cost me $20 in steaks is now $35. $15 more wont break me, but with everything else costing more, I'm spending $50 to $80 a more every week in groceries, and it's only going to get worse. I want a bigger tractor so I can get more done on my land, and start producing livestock that I can sell, trade and consume. Having a little bit of land means that I have the opportunity to do this, and buying the bigger tractor means that I can get more done then not having the bigger tractor.

On a side note, here in East Texas, the cost of a home with a few acres has gone crazy. I am not the only person that feels it's important to have a garden and some livestock. I believe that with so many people buying land, you will have a huge increase in people wanting a tractor to work their land.

I just saw that fertilizer has tripled in cost all of a sudden. Fuel has doubled. Raising livestock is going to cost a lot more money. I believe that prices are going to continue to increase on food, and I really have no idea how bad it is going to get, but I believe that it is happening and it would be wise to be as prepared as possible to deal with it.

I believe that the reason so many people are wanting a tractor right now, is exactly why I want another tractor, and why I'm willing to go into debt to get it now.

Yes, I have to agree with you as I was looking at new and used John Deere tractors there in Kemp and Athens, and some Kubota ones in Kaufman and Trinidad while I was in East Texas, and the prices all of tractors shot up. So I decided I needed to get one quick, so when I got back to Florida I saw one morning information came up that there was a 2020 L3301 with low hours (I think 33hrs) in Futchs Tractor Depot in Hastings Fl for $13,999 and I called to confirm they really had it for sale and at that price and got in my car and drove straight there, took me about 4 and a half hours to get there. They were prepping it when I got there, so I asked the salesman, and he said, yeah, he had just sold it.....I watched them load it up and no scratches or dents, and everything was working, and look what they are selling for now... https://www.tractorhouse.com/listin...2020-kubota-l3301hst-less-than-40-hp-tractors

 

[Reddogs]

We are likely holding off on a tractor and pole barn build at this juncture, as our investments have lost 10% or more in the past few weeks. A weak economy, plus inflation, isn’t making likely those will recover soon. The idea was to use $120k cash from those to fund the improvements... but selling those now accepts a $12k loss. We could finance to avoid some opportunity cost, but as a rule we typically don’t borrow for anything. Still on the fence.
Historically after a correction, we recover 17% or so, over 12 months... but this situation may be different.

I lost my shirt in the 2007 downturn, and I think this one has all the potential for a similar one, so putting some investments in land and hardware. If they are offering more than you paid for your car or tractor than when you bought it, and real estate going through the roof, thats one of the best bets right now. Got to see what unfolds..

 

[MHarryE]

My CUT no longer fit my needs so after the majority of my crops were in, prices for my crops were higher than I've seen in my lifetime and every expect to see again, I visited my dealer and signed. Got to sit in my new tractor December 28th but weather too bad (salt on the roads) for delivery yet. They already sold my trade-in L6060 and are picking it up in an enclosed van today - if it starts. 11:00 am and its still -10F.

 

[sallyb]

I noticed this last year attachments doubled. I started looking for euro global grapple bucket about 2 yrs ago , they were running around 850 for 5’ , but then this year I really need one and a euro global if you find one is between 2000 and 3000. Looks like I’m going to have to add adapter and convert to skid steer to make loader more adaptable to bucket attachments.

 

[CloverKnollFarms]

I think people actually added to savings over the pandemic... some folks make out REALLY well. I want to say the average families savings INCREASED over the past two years. They are flush with cash

 

[wheelbuilder]

By me, there has been an influx of people from NYC abandoning their digs in the city and moving to their second homes upstate full time. They largely seem to think that means they need a suburban and a 40hp tractor for their 20 foot drive and 2 acres of lawnmowing.
The traffic increase is crazy in the past 6 - 12 months.

 

[Hay Dude]

We just saved a 360 acre farm from the developer. The developer went through 6 YEARS of “studies” and everything took so long, the laws changed and the some of the studies have to be done over again. They ran out of money and a local Conservancy stepped up and gave the farm owner enough money to finally give up and keep it open space.
If it was developed, we would have had unimaginable traffic, new schools built, and all the other nonsense.

 

[areid]

I think the western world has very poor leaders and their poor choices have led to massive inflation. The gap in the classes continues to widen. Buying a new half ton will cost you between $60 and $100,000, who could have imagined that. I also think the pandemic fear has all but distroyed the travel industry meaning all those people used to spending $10,000 - $20,000 on a two week vacation now have money to spare. There is also the fear that government over spending is going to necessitate the need for higher interest rates. Tough times for much of the population while other parts prosper. Just my two cents.