Rare item -- new iron

[daTeacha]

The latest issue of Ohio Farmer has a bit about the lack of new machinery on the dealer lots. Apparently the value of the dollar is making American iron pretty popular in overseas markets and there is not a lot of stock for the home dealers. Many farmers are finding they need to get on a list for a specific machine. Is this also true for the compacts lately? Will used prices go up because of it?

 

[MessickFarmEqu]

Yes its very true. Its not so much an issue with compacts as it is with farm implements. I know Case actually canceled some retail orders because they where unable to fill them.

 

[IslandTractor]

In the last few weeks, the dollar has shot up in value versus almost all other foreign currencies so this trend (exporting US built tractors and implements due to cheap dollar) is likely to diminish.

 

[jimgerken]

Certainly true with the bigger iron. Guys around here talked about not being able to buy a corn planter this Spring, and larger tractors were sold out for the year "last Fall" according to rumor. Compacts however are piling up at dealers. Closest John Deere dealer here is crying for sales activity on all the smaller stuff. This all makes sense though. With commodity prices good, and probably great again next Spring when exports continue to drain our country of its produce, producing farmers need working equipment and have money to spend. On the other hand, luxury items like compact utils have to feel the crunch of the shrinking economy.

 

[ToadHill]

Makes sense, most all the compacts are made overseas. So the dollar drops in value, we can then ship overseas and all we make in the US is big stuff, that's what we ship; while we import compacts from overseas and the price continues to rise on them because of the weak dollar.

 

[IslandTractor]

Makes sense, most all the compacts are made overseas. So the dollar drops in value, we can then ship overseas and all we make in the US is big stuff, that's what we ship; while we import compacts from overseas and the price continues to rise on them because of the weak dollar.

That argument made total sense a month ago but since then the dollar has risen dramatically against all foreign currencies except the Yen. It still explains what is going on in dealer lots right now but over the next quarter or so that would change due to the now rising value of the dollar.

 

[flusher]

Certainly true with the bigger iron. Guys around here talked about not being able to buy a corn planter this Spring, and larger tractors were sold out for the year "last Fall" according to rumor. Compacts however are piling up at dealers. Closest John Deere dealer here is crying for sales activity on all the smaller stuff. This all makes sense though. With commodity prices good, and probably great again next Spring when exports continue to drain our country of its produce, producing farmers need working equipment and have money to spend. On the other hand, luxury items like compact utils have to feel the crunch of the shrinking economy.

Same here. CUT and SCUT sales are way down around here compared to last year. Financing is available, but customers are sitting on their wallets while this bad mortgage stuff works its way out of the financial system.

Merchants down in the Sacramento area have their fingers crossed in anticipation of a possible Black Friday meltdown. Auto and truck sales are in the toilet and the Big Three are consolidating dealerships resulting in some dealers being forced out of business.