New Tractor Sales Are Declining

[2manyrocks]

What? A salesman making a call to a customer to try to get a sale instead of the customer having to plead with the dealership to try to get their attention? What is the world coming to.

 

[Milo]

The small Kubota dealer I drive by now has 3 pretty long lines of tractors plus a bunch scattered around. Up to a few months ago there were no lines of tractors just a handful on the lot.

 

[Cahaba Valley Farm]

What? A salesman making a call to a customer to try to get a sale instead of the customer having to plead with the dealership to try to get their attention? What is the world coming to.

Yep I think hell has just frozen over.

 

[Cahaba Valley Farm]

Another market update from Mike.

 

[jezreel]

What? A salesman making a call to a customer to try to get a sale instead of the customer having to plead with the dealership to try to get their attention? What is the world coming to.

Yeah. . . This is what I usually get. . .

Just call BR-549, and leave a message if I don’t answer.

 

[CloverKnollFarms]

Whatta ya know… government spending = inflation. Now we are seeing the correction.

 

[Jack Yuan]

I can't imagine an experienced economist like Paul Volker increasing the money supply so much and so fast.

Often, the Fed is responding to what happens in the economy, but in this instance, in my personal opinion, the Fed has significant responsibility for price inflation jumping up and has responsibility for the economic melt down that will result from their efforts to get inflation back under control. Steadier, more experienced economists of the past wouldn't have gone to the same extremes as the people at todays Fed, IMPO. All this mess could have been avoided.

Economist? They are just the walking speaker for the man in power.

 

[Jack Yuan]

Just spent some hours to read through this long post, get lots of information, thanks TBN and everyone here.
Here are something from manufacturers side. When we saw those huge relief plan since the end of 2020, we already knew the big inflation shock will be coming. In 2021, the factories got quite a lot more orders, same happened in every industry, this growth is unusual and crazy, looked like people had endless money at that time, importers placed order and kept urge on delivery. Then in 2022, many of these demand disappeared, some manufacturers were gone during this big change because they didn't keep their finance situation healthy and had wrong prediction, the good business in 2021 was attractive and they expanded too much beyond their finance capacity.

Also importers faced same problem, see how the sea freight price rised to the mountain high in 2021 and fall down so deep now, the sea freight price is a good index to judge on economy.

If we open the histroy book, we can see this happens again and again. But people won't learn from this lesson.

 

[Torvy]

Economist? They are just the walking speaker for the man in power.

The Fed Board of Governors are appointed by presidents for 14 year terms and are not directly responsible to the Executive after that. He can choose who is the Chair, Vice Chair and one other role, but that is from the existing members. He can also remove for cause. Currently, most of the board was appointed by Trump, iirc.

Janet Yellen used to be the Fed Chair. They are supposed to be apolitical, but like anyone in those roles, they definitely have personal bias. Ethically, she should never have taken that role as Treasury Secretary because it is overtly political.

 

[Jack Yuan]

The Fed Board of Governors are appointed by presidents for 14 year terms and are not directly responsible to the Executive after that. He can choose who is the Chair, Vice Chair and one other role, but that is from the existing members. He can also remove for cause. Currently, most of the board was appointed by Trump, iirc.

Janet Yellen used to be the Fed Chair. They are supposed to be apolitical, but like anyone in those roles, they definitely have personal bias. Ethically, she should never have taken that role as Treasury Secretary because it is overtly political.

The purpose of politics is the distribution of wealth, sorry, I think the word "apolitical" never be suitable on any economist.

There was weakness on economy before Covid, I agree the Covid push the problem of economy. The problem is how to distribute the wealth, the gap between rich and poor, to fix it, need reform the distribution, or at least change it a little. Give everyone money won't fix the problem, only bring the inflation, and let more wealth go to rich one.

Back to market and tractor, what I see now is that people only buy what they have to, the buyers are watching and waiting, is it the bottom now? Who knows.... This is why someone prefer rent than buy now.