The Economy and Purchases

RichNJ · Aug 29, 2001

For those of you that use your tractor for home/farm stuff and is not your primary source of income - I have a question.
Is the slow economy affecting the purchase of any new equipment/attachments?

For me it is. The rumour at the large company I work for is that there will be a 10% layoff sometime in the near future. No matter how secure you feel in your position, you never know if you are going to get the "silver bullet" pink slip.

ChrisR · Aug 29, 2001

Hi RichNJ
I'm not sure what it's like in the USA but over here in Australia the downturn in the economy and the current trend for companys to reduce permanent staff and hire contract staff has taken away the once expected security of lasting employment and this has had a dramatic effect on spending, especially "luxury/leisure items" and these include what you refer to. I myself have put off buying certain implements etc. because of the uncertainty of my employmnet, and I know from speaking to my local tractor retailer that both large and small equipment sales have fallen dramatically in the last 3-4 years. I think unfortunatly that its just a sign of the times. My way of living with the situation is to have no loans and always keep some money in reserve, but it does gets hard when you see lovely new equipment.

Regards

Chris

TerryinMD · Aug 29, 2001

I work for WorldCom and they had a large layoff on Ash Wednesday. I survived. Anticipate more layoffs in the near future. No reason, just a feeling.

In general, the economy is lackluster. It appears that most industries are growing slightly. It's kind of funny to watch all of the young turks shake their heads in disbelief about the current economic conditions. Well, geez guys, business is cyclic. Did you think that the economy would keep growing as it has for the past 5 or so years? The cost of doing business has grown proportionately higher than the cost of the goods produced. Something had to give.

As far as slowing down on my spending. Not really. Still need to live and to prepare for the next year. Land to be cleared and maintained. That does not change.

In fact, I just went out yesterday and ordered a rotary cutter, rear blade, and single moldboard plow. Someone has to keep the economy going. /w3tcompact/icons/smile.gif

Now, that does not mean that I am not watching my spending. Just being selective. New 36" TV or rotary cutter?? New stereo or rear blade?? Eat lunch out everyday or new plow?? Just need to make adjustments.

That's my 2.5 cents.

RichNJ · Aug 29, 2001

TerryinMD,
Just wanted to thank you for your input and for keeping the economy going. How are the equipment prices in MD? Up here in NJ they are high no matter what dealer you go to. Maybe that will change as the economy goes down the drain.

For me it's the time or money situation. If I buy a toothbar for the FEL than I can save time digging and don't have to pay anyone else to dig for me. But I have two small kids and a wife that need my attention. I have no loans and money in reserve but it would seem silly if I went and spent a couple thousand bucks today then 4 weeks from now got canned. The equipment I have now will do the job - just slowly.
The equipment I have purchased and will purchase is for my small farm. If I don't farm the property then the real estate taxes go thru the roof. So the equipment I buy today will pay for itself in the near term by lowering the real estate taxes. I think most if not all states have reduced real estate taxes for farming.

TerryinMD · Aug 29, 2001

I try to do my best for the good of our local dealers.

I bought a Woods Brushbull 48" rotary cutter ($700), Woods RB60 blade ($300), and a Leinbach 14" moldboard with coulter ($395). The dealer sells a lot Woods Equipement which probably entitles him to a nice dealer discount. No delivery charges and best of all - no state tax. Maryland has a tax exemption for equipment used for farm production.

I have researched the equipment and called/visited a few dealers to find out what they have and what they can do for me (sorry to be a little self-centered here). You may need to go into New York or Pennsylvania to find some better prices. And, of course, there is the auction route.

Additionally, I will depreciate the equipment as part of our Market Garden business expenses.

All in all, win-win in my situation.

I understand the money situation. Since the Gubmint is going to return a few hundred bucks that I have lent them. I am going to do what the Gubmint expects. Put the money back into the ecomony - plus a little from savings.

Now, about keeping my job. Who knows!! I have taken the attitude that it doesn't matter as to what you do at work. I saw some really good, productive workers get canned. It becomes a numbers game. I do my job as best I can and keep on learning new skills. As I will be able to use them if and when I have to get another job. There is always some kind of work to do.

Terry