Soybeans are less than $10 when in 2013 they were over $16. Corn for my sister's dairy was purchased out of the field and trucked to their bins for $3.50 delivered where a year ago it was double. I sold hay last year for $60 per bale whereas now I have hay I can't get rid of for $40. Prices had been so high for corn and soybeans that everyone loaded up and there were no severe drought areas in the Midwest so farmers got bumper yields but low cash return on high production cost. Much of the large ag buying is end of year when you total things up and see what equipment purchases are needed to write off depreciation.
It's not just tractors - everything is on sale from mowers to balers, planters to sprayers and so on.
My sister's dairy saw their milk price drop from $25 per 100 lb to $16 per 100 lb, partly offset by the low corn price. That $25 price up here in 2014 was astonishingly high but probably due to the Midwest drought in 2013. Lots of dairy farmers in places like Missouri had to liquidate their herds. Now production is coming back so the price is tanking. In addition the labor flow down on the West Coast is trashing exports that would be heading to Asia further killing the market.
European farmers are hurting because of the Russian sanctions. They have lost a significant share of their market. A good war to straighten things out would benefit their farmers but at what cost?
But according to our dealers the SCUT and CUT market us booming. Those tractors don't go to ag farmers. Possibly why a Kubota cut their 60 month zero interest to 48 month zero interest.
Deere's cuts are in their large ag production - Waterloo tractor works, Moline harvester works, etc.
In addition the euro has tanked dropping as low as $1.12 per euro last week vs $1.40 last year. It makes it hard to export the Waterloo production at a profit while they can heavily discount their ag utility tractors built in Germany and still make a tidy profit.
As much as I hate to say it, it's a nice thing when a good portion of the Midwest has a drought because it boosts the prices and the profit margins, as long as you aren't in the drought area. Then it really sucks.
Now all the hay I have stored - the deer are everywhere but the DNR won't let us harvest them.