New Tractor Sales Are Declining

[Cahaba Valley Farm]

That's funny, my $ has has been going down fast for 2 years. Doesn't matter which way you figure it, the bottom line is i work as hard as ever, make more than ever, but it still takes more hours to pay for the same thing.

It sounds like you got a money leak going on there Preacher. The first place I would check is the wife valve.

 

[ovrszd]

It sounds like you got a money leak going on there Preacher. The first place I would check is the wife valve.

You forgot the winky face. Cause we all know you are joking.

 

[2manyrocks]

They opened the money spigot and the value of the dollar went down the inflation drain. T posts that used to be $3.29 not that long ago are now $6.19.

 

[CloverKnollFarms]

The currency may be comparably more valuable… but that doesn’t mean anything when the cost of everything has outpaced it, and your investments are down 25%…

Real wages are down. That’s all you need to know, and everyone feels it. Our citizens are becoming poorer by the day, and all we discuss are family friendly drag shows.

 

[Williy]

Not very much you can do about it as long as the
clown is in office but you can call your congressman
and complain of which it would be like talking to a tree????

willy

 

[edmoor]

This is about the third straight quarter that tractor sales have been on the decline. As mentioned last year, I believed the huge surge in compact tractor sales was tied to the overheated housing market and once that popped we would see demand sharply fall. My father has also reported seeing Kubota commercials running on television a lot lately which is very unusual given the time of year and where we are located in the country. My best advice to anyone considering the purchase of a new tractor is to sit and wait it out. If this trend continues we could see some real bargain buys coming next year.

Here is a video from a guy that has been covering this since the start of the year. This most recent video is his best to date.

No...it's nobody makes a good tractor anymore..like work trucks..can't get em..everything is this bells and whistles b.s on everything.

 

[MinnesotaEric]

This is about the third straight quarter that tractor sales have been on the decline. As mentioned last year, I believed the huge surge in compact tractor sales was tied to the overheated housing market and once that popped we would see demand sharply fall. My father has also reported seeing Kubota commercials running on television a lot lately which is very unusual given the time of year and where we are located in the country. My best advice to anyone considering the purchase of a new tractor is to sit and wait it out. If this trend continues we could see some real bargain buys coming next year.

Here is a video from a guy that has been covering this since the start of the year. This most recent video is his best to date.

Definitely entering the first leg of the three-fold Chinese curse: "May you live in interesting times."

First, as of yesterday the Bank of England is both raising rates, as well as buying its own treasury bonds in an attempt to shore up the value of the Pound. In a year, our Central Bank may very well be copying the same broken strategy as inflation continues to spiral upward.

Second, our present Administration is being thanked for sabotaging the NORD pipeline releasing an untold amount of greenhouse gasses in the context the same Administration has stated that global warming represents the greatest existential threat to the human race. Expect energy prices to continue to rise, thereby fueling more inflation.

Third, our government leaders continue to saber-rattle against Russia, a very dangerous path—especially so if we really did sabotage the NORD pipeline which would pit us directly at odds with our largest nuclear rival. Even so our government has already sent $66B of aid to Ukraine, and this after we orchestrated a coup in Ukraine a few years ago.

Fourth, Hurricane Ian slamming into Florida, Florida will require emergency disaster money, money we cannot afford to print because doing so will further fan the flames of inflation.

I’m expecting a 20% haircut in market values over the next 12-18 months as the bubble of everything deflates even as inflation continues to haunt us. Hopefully we don’t get into a new war.

 

[ultrarunner]

If holdings provide utility can it ever have no value... a tractor used to work the land, dwelling to provide shelter, etc.?

The times I have realized loss are when a stock went to zero... so far all my losses have been stock related and why I don't put too much stock in stock...

I've seen people set for retirement have their plans dashed due to stock market losses... so they delay if able and keep working.

 

[2manyrocks]

I can't point to any specific proof of this, but I suspect part of the run up in home real estate prices was due to people wanting to invest their money in something tangible instead of trusting it to the stock market.

 

[ultrarunner]

I can't point to any specific proof of this, but I suspect part of the run up in home real estate prices was due to people wanting to invest their money in something tangible instead of trusting it to the stock market.

Definitely a reason for some I know…

Plus bank interest amounting to a few pennies a month… give me a break…

Real Estaye here is definitely cyclical but it so far always comes back stronger…

 

[jyoutz]

I agree, and right now all of my 401K is in cash. It may not go up, yet is the only thing in my portfolio which hasn't dropped drastically. When things settle down I will move it elsewhere, but that may take a while.

I’m in the same place. My retirement funds have been parked in cash since last spring. The funds are slowly growing; nothing much, but I’m not losing like I was in stocks. Yes, I’m losing against inflation, but not as much as the stocks were losing.

 

[CaptFerd]

Inflation never goes backwards especially now. If your waiting for prices to decline dont hold your breath. Everything and especially anything that has to do with using fossil fuels is getting taxed to death right now, Prices are passed on to the consumer. A new administration will step in and remove taxes and the manufactures use that tax relief as their profit. They never pass the savings to you. My first brand new car (1977 Ford Pinto) was less than what you pay for a riding mower these days. This should tell you that a riding mower to cut your grass in the near future will be $30,000.00.

 

[lman]

Wages have gone up and I have rarely seen them go down. It would be difficult to reduce prices when wages have gone up so much(excluding my pension). I chuckled when I saw this article because many were claiming that wages weren't high enough. Increasing wages helps nobody when it drives inflation.

U.S. Federal Reserve says its goal is ‘to get wages down’ - MR Online

U.S. Federal Reserve chairman Jerome Powell said his goal is “to get wages down,” complaining workers have too much power in the labor market. Economist Michael Hudson says this is “junk economics,” and corporate monopolies are driving inflation, not wages.

mronline.org

 

[2manyrocks]

If retail sales slump this holiday or employers don't like the way things are headed after the holiday sales season is over, look for employers to cut employees that they don't like or think are getting paid too much. Remote workers may also be on the cull list.

 

[MHarryE]

When you put a large tariff on our largest supplier, who is going to pay? The end user - it all is passed along. And even if you aren't buying something made in China (even Apple is switching to India), the new supplier will take advantage. Remember even F-35 deliveries are on hold because they found a part that somewhere down the chain, a part was sourced from China. To compensate for our tariffs, China put large tariffs on USA supplied stuff like farm products. The ag lobby complained and money given to farmers to compensate for their losses, but prices still went up. My grain sales following last year's harvest were 75% higher per bushel - thank you consumers. One thing after another. As for shortages, I still read of people unable to get delivery dates for Kubota products depending on part of the country yet Kubota continues their 0% rate - on higher priced product so they balance out. I retired at the start of 2009 with most of my income being from investments. I am still in stocks, yes, I am suffering this year, but over the 12 years since I retired, I ranged from 12% to 22% annual increase in my stock portfolio. So I am down 15% this year to date, really hurts, but should I complain after the gains over the previous 12, or do I only complain about today. Will I buy another new tractor this year (I bought 8 since I retired)? Very unlikely. If I do buy, it will be like Hay Dude looking for a good buy in used. Used prices - I have seen auction prices a fraction of a year ago.

 

[TimberFarm]

Wages have gone up and I have rarely seen them go down. It would be difficult to reduce prices when wages have gone up so much(excluding my pension). I chuckled when I saw this article because many were claiming that wages weren't high enough. Increasing wages helps nobody when it drives inflation.

U.S. Federal Reserve says its goal is ‘to get wages down’ - MR Online

U.S. Federal Reserve chairman Jerome Powell said his goal is “to get wages down,” complaining workers have too much power in the labor market. Economist Michael Hudson says this is “junk economics,” and corporate monopolies are driving inflation, not wages.

mronline.org

They most certainly go down.
When there are layoffs in a downturn, the new re-hires start at a lower salary when things pick up again.
Wages haven't increased that much in this cycle compared to the massive corporate profit increases that ran up the inflation.

 

[lman]

A lot of the wages in manufacturing have gone up 75% in the last 3 years around here. It seems like a bigger increase in such a short time than I ever got. I'm sure the unions would balk at reducing wages once they are set in the union contract.
Where are you at TimberFarm? It may be different there.

 

[CloverKnollFarms]

If retail sales slump this holiday or employers don't like the way things are headed after the holiday sales season is over, look for employers to cut employees that they don't like or think are getting paid too much. Remote workers may also be on the cull list.

I read an article two days ago stating that holiday purchasing is already taking a hit. Energy prices are rising again, quickly… I think the soft landing hopes are dashed. They were really lies being told to a public that they thought would buy in long enough for the midterms. Like the lie that Biden DIDNT forget that our Indiana representative was actually DEAD. They really have no qualms about treating you like a complete imbecile

 

[CloverKnollFarms]

A lot of the wages in manufacturing have gone up 75% in the last 3 years around here. It seems like a bigger increase in such a short time than I ever got. I'm sure the unions would balk at reducing wages once they are set in the union contract.
Where are you at TimberFarm? It may be different there.

Force majeure. This is how UAL pilots lost their pensions, leaving 60 year old professionals broke. Unions don’t have to agree.

 

[TimberFarm]

A lot of the wages in manufacturing have gone up 75% in the last 3 years around here. It seems like a bigger increase in such a short time than I ever got. I'm sure the unions would balk at reducing wages once they are set in the union contract.
Where are you at TimberFarm? It may be different there.

NC