Sticker shock

[Torvy]

I agree… but I try not to be picky… if any of those entities are responsible for the land they own, then they might be interested in managing that land. If not then nature will do it for them, all at the cost of loss of habitat and an increasing carbon footprint over minimizing it via mgmt.

No, I’m not pointing fingers, but I am asking questions about who’s responsibility maintenance of land is to fall on. Is it the right, the left, the future, or the current owners or operators of that land?

Current owners are often prohibited from doing things to manage their land.

 

[MHarryE]

From Successful Farming magazine, here is a used ag equipment price comparison 2021 over 2020. I understand it was taken as the average selling price, at auction, of models in each range. For example if you are looking for a used compact tractor 3 years old, you are likely to see a 12% increase over last year. I am trying to replace my CUT with a row crop tractor - that is definitely not the best thing to do right now, but its what I need. Then they have this quote from Messick's:

“True, our lots are usually full this time of year,” observes Neil Messick at Messick’s Equipment in Pennsylvania. “We do have some things in stock like large New Holland tractors. But other equipment such as small tractors, planters, loader attachments, and UTVs are still in short supply.”

 

[DonaldP]

From Successful Farming magazine, here is a used ag equipment price comparison 2021 over 2020. I understand it was taken as the average selling price, at auction, of models in each range. For example if you are looking for a used compact tractor 3 years old, you are likely to see a 12% increase over last year. I am trying to replace my CUT with a row crop tractor - that is definitely not the best thing to do right now, but its what I need. Then they have this quote from Messick's:

“True, our lots are usually full this time of year,” observes Neil Messick at Messick’s Equipment in Pennsylvania. “We do have some things in stock like large New Holland tractors. But other equipment such as small tractors, planters, loader attachments, and UTVs are still in short supply.”

i was doing just a tad bit O’ research. What I am gleening from this issue is that many feel there is a way to minimize driving the upward spiral… buy NOTHING if you can, until the supply/demand mix evens out. It could be late 2023 for that.

I know it’s pipe dream. Everything we have done on this planet has been driven as of late (30 plus years) by instant gratification.

We even changed the way we manufacture to support that … JIT, or Just In Time manufacturing. Materials are minimally warehoused and instead arrive at the door to the plant sometimes hours before the point they are needed for assembly.

They aren’t meaning everything in the “don’t buy” suggestion, but they are talking about durable goods that place stress on the already weak supply.

I want to build a garage/barn. Started planning in Aug 2019… by Dec/Feb all of that went on hold due to cost. Now it’s on hold due to supply. (Which may bring us back to cost issues yet again. This is a big wave, like a pendulum that swings from supply to no supply to supply to no supply, until things equalize. Cost will be the inverse of supply at each swing of the pendulum. Maybe as the dwell (the area in between each max point on each side of the swing) lengthens as the pendulum slows, there will be more time available for prices to stabilize enough for purchases that won’t rock the boat.

 

[DonaldP]

Current owners are often prohibited from doing things to manage their land.

Isn't that the truth… amazing!

 

[Hay Dude]

Current owners are often prohibited from doing things to manage their land.

Yep
I brought several tri axle loads of compost/mushroom soil (looks like peat moss) onto a customers farm which had previously been fertilized with much harsher chemicals (ammonium nitrate, nitrogen pellets) by previous farmer.
Next day the DEP was there asking questions and issuing warnings to me.
They spotted what I was doing from a helicopter

 

[DonaldP]

Keep in mind that the website build it price and your local dealer's price will be different and usually less. Case in point, I bought a new 4x5 Kubota Premium Round bailer this fall and the build it price and the actual price I paid was 5 grand different. Build it price is always retail suggested price and because dealers are independent businessmen they can vary the price so long as they make some profit.

I wonder…

I tend to think outside the box sometimes. That’s usually outside the box of “Reality” so take everything I say from a view of about 65,000 feet up.

Do they/we have farm co-ops that can operate as a retailer or dealer for purchasing tractors/equipment at cost?

Could the costs to do such, be covered by the service and maintenance programs sponsored by that same co-op?

 

[DonaldP]

Yep
I brought several tri axle loads of compost/mushroom soil (looks like peat moss) onto a customers farm which had previously been fertilized with much harsher chemicals (ammonium nitrate, nitrogen pellets) by previous farmer.
Next day the DEP was there asking questions and issuing warnings to me.
They spotted what I was doing from a helicopter

Get outta here!!!!

A freaking helicopter just floating around waiting for a gotcha!

That’s a perfectly prudent and viable use of your savings transferred to the federal government by them passing a 1.2 trillion dollar Bill that pulls inflation higher, and has more spending in it for things that we don’t see over things we do.

As I recall, that Liberty Liberty Liberty commercial with the guy dreaming he’s in a yellow helicopter and his boss telling him they won’t buy him one…

Do you recall what color the helicopter was you saw? Maybe his boss changed her mind!

 

[DonaldP]

I've almost been tempted to put my BX1870 up for sale and get a BX2380 with the way used prices are now. Almost crapped myself when I put my car's info into Carvana last week and they came back with an offer over $14k, and last year I couldn't even get a value as it was a base model and "undesirable"....

And… that’s the “great equalizer” with inflation.

If you sell, to land a windfall due to inflation (or demand), at some point if the windfall is based on inflation, you will pay in higher replacement costs. Depending on the stage of inflation you are in… if you are years away from deflation you will transfer that windfall to your new purchase.

If the windfall you experience is from a short term demand/supply issue then you stand a better chance of not being impacted when you replace the item you sold for the windfall.

what was that quote from Dirty Harry ….

"You've Gotta' Ask Yourself A Question. 'Do I Feel Lucky?'”

 

[DonaldP]

From Successful Farming magazine, here is a used ag equipment price comparison 2021 over 2020. I understand it was taken as the average selling price, at auction, of models in each range. For example if you are looking for a used compact tractor 3 years old, you are likely to see a 12% increase over last year. I am trying to replace my CUT with a row crop tractor - that is definitely not the best thing to do right now, but its what I need. Then they have this quote from Messick's:

“True, our lots are usually full this time of year,” observes Neil Messick at Messick’s Equipment in Pennsylvania. “We do have some things in stock like large New Holland tractors. But other equipment such as small tractors, planters, loader attachments, and UTVs are still in short supply.”

inflation:

Everyone that owns a home (or2) is looking at the real estate market and saying

“wow! Have I made some money sitting on this property!”

There are views out there that real estate is the first thing that takes a hit on the positive side (as opposed to savings which take a negative hit) when inflation spikes.

Secondarily are the resources to produce things… generally raw materials, not finished goods.

If all of this froth is truly inflationary then given enough time the inflation is passed via finished goods as well.

But the interesting point here is that many economists feel you aren’t experiencing a windfall in this market… you are experiencing inflation.

The value of many home(s) have heftily increased over the last 3 years. Those folks are saying it’s not the value of the property that’s increasing, it’s inflation driving upward that’s pushing that up.

Less of us are contemplating selling our homes than keeping them, so unless your property is income based and not used for housing for your own needs, then the value you have gained will only be realized if your sell it… and only then if the surrounding goods and services you might spend that $ on is not also impacted by the same inflation that allowed you the increased equity you experience.

 

[lman]

The value of the dollar has tanked due to excessive printing of money, so while real estate values have gone up so has the prices of everything else.