Are tractor prices dropping, have they peaked?

[Torvy]

Unless you farm (which I do), no one on here needs a tractor, consequently, at some point in the near future all the incentives will vanish as the prime increases.

Simply put, what you need and what you desire are 2 entirely different things.

Using that logic, no one needs a tractor. Farming existed before tractors existed. Ultimately, very few things are needs.

As to 7% mortgage interest being high, 1979 is laughing at you. Low rates then were just under 12%.

 

[jyoutz]

Using that logic, no one needs a tractor. Farming existed before tractors existed. Ultimately, very few things are needs.

As to 7% mortgage interest being high, 1979 is laughing at you. Low rates then were just under 12%.

My first mortgage in 1987 was 10%.

 

[jyoutz]

Same with other investments. When stock drops, you buy it for long term investment. Day traders are the ones who take a beating.

Some of us will need the investment in the short term, so stocks are not a good idea now.

 

[IndyJay]

Using that logic, no one needs a tractor. Farming existed before tractors existed. Ultimately, very few things are needs.

As to 7% mortgage interest being high, 1979 is laughing at you. Low rates then were just under 12%.

When we bought our farm interest rates were 14.75%. We were able to negotiate with the seller's bank for a blend of the seller's balance@rate and new loan@rate bringing it to 12.75% making that a great deal at the time.

 

[Bobcat Tractor Mac]

I looks like the prices for gas, diesel, used cars, and other commodities have peaked from the tremendous surge of the last year..

Used car prices are starting to decline

The Manheim Used Vehicle Value Index, a gauge of wholesale market prices for used vehicles, dropped for its second straight month.

www.axios.com

Gas Prices Drop Two Weeks in a Row, and Now E15 Gas Will Be Allowed over Summer

E15 gasoline with ethanol will be allowed to be sold over the summer in a break from the usual. That could lead to further declines in the cost of filling up your vehicle, but consumers are still restless.

www.caranddriver.com

https://www.fleetowner.com/news/article/21236802/diesel-prices-ease-a-bit-but-remain-high

But has anyone seen the tractor prices easing up, have they peaked and beginning to go down or at least level off.

Steel is still going up. Wages still going up. Interest still going up.

 

[Oaktree]

Very true it is dwindling right in your hand. You are loosing value on that cash pile and the only way to stop the loss is to invest.

Invest in what? The stock market has been quite volatile lately, my portfolio is down for the year so far.
Real estate is so over-priced right now that it's not really a good investment either, and not very liquid.

Hint: Buy low, sell high!

If it was that easy, then everybody would be rich. Trying to time the market is a fool's errand.

 

[Oaktree]

True. But some people who don’t farm still need tractors. Many of us live on roads that are not county maintained.

Well, counties don't do road maintenance in my state, but I agree there are plenty of uses for tractors by non-farmers. Could I get by without one? Yeah probably, would I want to? No, not really.

 

[jyoutz]

Well, counties don't do road maintenance in my state, but I agree there are plenty of uses for tractors by non-farmers. Could I get by without one? Yeah probably, would I want to? No, not really.

Counties do road maintenance here on county roads, but I have a 1/2 mile of private road to maintain.

 

[Cahaba Valley Farm]

True. But some people who don’t farm still need tractors. Many of us live on roads that are not county maintained.

Or we have a lot of property to mow and maintain like in my case.

 

[Cahaba Valley Farm]

If it was that easy, then everybody would be rich. Trying to time the market is a fool's errand.

Yet that is what every investor does. The investment community telling investors to not time markets is the biggest hypocrisy in existence.

 

[IndyJay]

Invest in what? The stock market has been quite volatile lately, my portfolio is down for the year so far.
Real estate is so over-priced right now that it's not really a good investment either, and not very liquid.

If it was that easy, then everybody would be rich. Trying to time the market is a fool's errand.

Only a fool tries to time the market. These investments are for the long haul. Same with Real Estate. If you need to liquefy in near term you shouldn't be investing in anything. Spend your money now before inflation eats it up. Otherwise take advantage of the bargains that are becoming available as a long term investment. That is what I meant by "buy low, sell high".

Edit: I am speaking of the casual investor, not folks who do this for a living.

 

[beenthere]

I looks like the prices for gas, diesel, used cars, and other commodities have peaked from the tremendous surge of the last year..

Used car prices are starting to decline

The Manheim Used Vehicle Value Index, a gauge of wholesale market prices for used vehicles, dropped for its second straight month.

www.axios.com

Gas Prices Drop Two Weeks in a Row, and Now E15 Gas Will Be Allowed over Summer

E15 gasoline with ethanol will be allowed to be sold over the summer in a break from the usual. That could lead to further declines in the cost of filling up your vehicle, but consumers are still restless.

www.caranddriver.com

https://www.fleetowner.com/news/article/21236802/diesel-prices-ease-a-bit-but-remain-high

But has anyone seen the tractor prices easing up, have they peaked and beginning to go down or at least level off.

No to tractor prices easing up. Demand will keep the prices high. Little to do with fuel prices.

A lot due to EPA regs now and more coming.

 

[WM75Guy]

Permian Could See Production Surge As New Permits Reach All-Time High

Higher crude demand and elevated oil prices have driven the number of horizontal drilling permits in the Permian to a new all-time high in March

www.yahoo.com

The Permian Basin is hopping right now but it will not help prices in the short term. Our operator has filed for 34 new horizontal drilling permits this month on our West Texas property in the Permian Basin. It is all private land and the drilling permits go through the Texas Railroad Commission, not the feds. To get a permit approved takes 10 days, unless you need a spacing waiver, which takes about 30 days. Once your drilling permit is approved you have to find an available drill rig, move it and set it up, and drill all the wells branching out at that location, which can be up to 10. Our wells will be drilled at 5 different locations. The wells at each site are drilled 25' apart anywhere from 8,500' to 13,000' deep vertically and then horizontally for 2 1/2 miles. Then you have put in the wellheads, pumps, tanks, and lay pipeline to carry the product offsite. You normally have to lay 2 pipelines as you are getting oil and natural gas from each well. From filing for a permit to oil and gas flowing to production will take about a year.

Another consideration on how it impacts prices is that a well has a life-span, typically 30 years. There is not this dramatic increase in production just because new wells are being drilled. While new wells are coming on-line, older wells are going off-line. You get 50% of the total lifetime output in the first 3 years and after that it drops off pretty quick. When a well doesn't produce enough to pay for itself, it gets capped or used for injection. The price per barrel determines that, the higher the price the longer it stays in production. This graph works for West Texas wells, which are similar to Oklahoma wells.

 

[Reddogs]

Steel is still going up. Wages still going up. Interest still going up.

I think most are peaking and will stabilize or drift down soon...

 

[Reddogs]

No to tractor prices easing up. Demand will keep the prices high. Little to do with fuel prices.

A lot due to EPA regs now and more coming.

I am seeing tractor inventory piling up at the dealers in the south, how's it look where you are at or at the dealers near you?

 

[Reddogs]

Invest in what? The stock market has been quite volatile lately, my portfolio is down for the year so far.
Real estate is so over-priced right now that it's not really a good investment either, and not very liquid.

If it was that easy, then everybody would be rich. Trying to time the market is a fool's errand.

I work in real estate, so you know what my answer is going to be, and right now we are booming to say the least. The main thing is finding good property for great value, as the everglades is close and we all know about 'swampland' in Florida....

 

[Joe2399]

No to tractor prices easing up. Demand will keep the prices high. Little to do with fuel prices.

A lot due to EPA regs now and more coming.

What new regs are coming for tractors?

 

[Cahaba Valley Farm]

I am seeing tractor inventory piling up at the dealers in the south, how's it look where you are at or at the dealers near you?

It's piling up because of the price gouging. My dad saw a commercial on TV a couple days ago for Kubota. You know if they're advertising in a market like this they're on the hunt for suckers.

 

[Lineman North Florida]

It's piling up because of the price gouging. My dad saw a commercial on TV a couple days ago for Kubota. You know if they're advertising in a market like this they're on the hunt for suckers.

It's the total opposite in the tracked skid steer market, they ( Kubota ) are offering the best prices by far over their competitors, not sure what the difference is.

 

[Torvy]

It's the total opposite in the tracked skid steer market, they ( Kubota ) are offering the best prices by far over their competitors, not sure what the difference is.

The perceived product in the skid steer market gives them more competition. While many people look to Kubota early for a Scut or CUT, for a tracked skid you would typically look to Bobcat or Cat, before Kubota. I don't know that the reputation is fair on either product, but it is what it is.