Utility Tractor SALES RED HOT

   / Utility Tractor SALES RED HOT #11  
Ethanol was brought into the conversation. I don't know if ethanol has anything to do with the fact that the farmers are buying more tractors. Most farmers are buying over the 100 hp now days. Even a friend of mine that has a herd of about 30 has a 100hp brand new tractor. The E85 here in the midwest where you would think it would take off really fast is not moving at all. The majority of the C-Stores that are putting in the pumps are very upset in the sales and not worth the price of putting in the pumps/tanks for it.

But I do see in our area a lot of doctors, white shirts moving out in the country and buying horse ranches and small herds. And they are buying new tractors to go with it.


And I don't know anything about today's economy either. But if someone can figure it out would you please let us all know.


.
 
   / Utility Tractor SALES RED HOT #12  
thcri said:
And I don't know anything about today's economy either. But if someone can figure it out would you please let us all know.


.


OK, you asked.... Here's everything I know about today's global economy......




The end!
 
   / Utility Tractor SALES RED HOT #13  
My take on the hot compact tractor sales is that the baby boomer generation (me included) wants more and bigger toys. I grew up on a farm, all my previous family were farmers and my son now raises cattle on his wife's family farm.

From reading these threads I can tell the vast majority of readers have no clue about tractors, machinery, etc. I know the discussion is compact utilities but most farms of any size will hardly ever see such a tractor in their lineup. There is more than one reason for that. If you want to get real work done, you need a larger tractor. Most farming operations around here (central Illinois) will have about a 65hp on up as their small tractor, (unless they have an old Farmall M, or Allis Chalmers WD45 from a previous generation). You need the larger tractor with greater loader capacity for bales, moving machinery, etc. The mid size farm tractor is in the 100-180hp range then it goes up from there.

I see comments in this forum like a 40hp tractor is a big unit. Another thing about larger farming operations. Farmers are tight and do not like to part with a buck. They will spend the big money on the newer larger equipment such as large tractors and combines. Their smaller tractors have either been around forever or you can pick an older unit up at a farm auction. Most farmers (me being exception) will not pay $20,000 for a compact utility when they can spend that kind of money and get a good used 180 hp tractor, that tractor may be 15 years old but they don't care. It is something like getting more for your money. If they need (not want) a smaller tractor they hit the auction again for a 65 hp large frame farm tractor in the $6000-$8000 range.

My opinion (which we all know what an opinion is worth) is that the compact tractor market is hot because there are more "city" people with greater disposable income, they move out in the country and want to play farmer (or not) and just have a tractor.

I am close to that same category myself. I have pretty much always lived on a farm (and farmed) but have had to have a regular job to live off of with farming to pay for the extras. I farm 280 acres and have the conventional machinery lineup although most is in the 20 year and older range.

I went and bought me a new John Deere 3320 last fall with the loader and a few attachments. Did I need this?, absolutely not. Did I want this?, yes, that is why I bought it. I feel that many of you are in the same category, you don't actually need anything that fancy and new, but it sure is fun. Maybe I have a greater fascination because, as a small farmer, I was actually able to buy something brand new for a change instead of using someone else's junk. In all honesty I have found many more jobs for this tractor than I thought I would and it has really fit into my small operation. I can't use it for field work but I use it for about anything else, mainly because of the loader.

Getting back to the main discussion. Compact tractor sales are strong right now because people are buying them. Why they are buying them is because of the so many who have just a few acres and want a new toy. I'm not saying there are not totally legitimate uses out there, they are really great for the landscapers, home builders and those that need more than to just cut grass. Compacts have been around for a long time but seems they have really taken off in the past few years.

That is my soapbox which took place partially because it is raining, cold and nasty outside and there is not much else to do but play on the computer.
 
   / Utility Tractor SALES RED HOT #14  
Kahuna said:
Compact tractor sales are strong right now because people are buying them.
While I agreed with just about everything in your post, the Compact Tractor market is NOT strong right now. It WAS strong. But it has slowed considerably. It is actually surprising that Compact Tractor sales are up 6%.

What is growing is the UTILITY tractor market, which is up over 14%.
 
   / Utility Tractor SALES RED HOT #15  
Bob . . . is there a hp threshold that defines a compact vs. a utility tractor? I've never really known the terminology.
 
   / Utility Tractor SALES RED HOT #16  
Bob_Skurka said:
While I agreed with just about everything in your post, the Compact Tractor market is NOT strong right now. It WAS strong. But it has slowed considerably.

The stinking weather is really messing with us now, if it does not warm up our 2nd quater numbers are going to be skewed.
 
   / Utility Tractor SALES RED HOT #17  
An article in OHIO FARMER relates the percieved increase in sales to the corn prices and the fact that sales have been pretty flat in recent years, causing a reduction in dealer inventory and pipeline tractors. With the economic puzzle, some manufacturers and also some dealers have been freeing up cash by reducing inventory and relying more on selling to order. It doesn't take too many big expensive machines sitting on a lot to tie up a lot of money that might generate more profit elsewhere.

On the other hand, I stopped at my selling dealer over the weekend. They have quite a few new machines on the lot, including several that were there when I bought my tractor. That would include a DX29 and 33 from the older series, plus a 26 that still has the same 3 point backhoe temporarily mounted to it. They have some new machines including Kubotas and Cadets, but I was surprized to see the amount of new old stock still on the lot in both orange and red. The lot is far from overcrowded, but that doesn't mean things are moving.

Still, the article talked about lots of orders being placed at major trade shows, although a lot of it was for equipment other than tractors. Your guess is as good as mine.
 
   / Utility Tractor SALES RED HOT #18  
thunderworks said:
Bob . . . is there a hp threshold that defines a compact vs. a utility tractor? I've never really known the terminology.
I'm not a expert on utility tractors, but the difference between the CUTs and the UTs is not horsepower it is frame size and other features. There are some tractors that probably blur the lines of the two types of machines. But if you think about cars it is clear that a Cadillac is a luxury car and a Jeep Wrangler is an offroad vehicle . . . but what is a Range Rover? The Kubota L tractors are marketed as CUTs, the M tractors are marketed to farmers. But if you look at the New Holland line all the Boomers are clearly CUTs until you get up to the TC55, that one might marginally pass as a utility tractor based on weight, features, intent, etc. Deere has some overlapping machines too. Heck Deere has so many models now that even their CUTs are confusing if you look at their frame sizes, HP, weights, across their product lines.

MessickFarmEqu said:
The stinking weather is really messing with us now, if it does not warm up our 2nd quater numbers are going to be skewed.
I'm amazed at this year's weather. Today we mowed for the first time this year. Only got part of the property as much of it is still too wet from melting snow that we got the beginning of the week which froze all the daffodills that have been in bloom!
 
   / Utility Tractor SALES RED HOT #19  
I put my new CUT next to my old Ford Ferguson 2/9N and they were obviously cut from the same cloth. Very close dimensionly but the CUT has many advancements. Henry tried to bring a better life to the small farmer, that was the norm back then (or is it than), with his tractor . His efforts brought about a tractor that could accomplish more work and be done in a safer manner than (or is it then) previous. Farming has since become mostly large business and if you don't have hundreds, if not thousands of acres then your the exception. Many however are moving from the cities either back to the agricultural or rural ereas to "have 'em some property". Todays CUT is the perfect answer to the needs of this group. IMHO
 
   / Utility Tractor SALES RED HOT
  • Thread Starter
#20  
Offy said:
I put my new CUT next to my old Ford Ferguson 2/9N and they were obviously cut from the same cloth. Very close dimensionly but the CUT has many advancements. Henry tried to bring a better life to the small farmer, that was the norm back then (or is it than), with his tractor . His efforts brought about a tractor that could accomplish more work and be done in a safer manner than (or is it then) previous. Farming has since become mostly large business and if you don't have hundreds, if not thousands of acres then your the exception. Many however are moving from the cities either back to the agricultural or rural ereas to "have 'em some property". Todays CUT is the perfect answer to the needs of this group. IMHO
When your old tractor was introduced there were no: disc mowers, drum mowers, haybines, round balers, etc. That tractor did not have exterior hydraulics. Your CUT likely has a loader not the old tractor. There are more operators farming 100 or less acres than all the rest of the farmers combined. Row crop and dairy's have increased in size because of the technology. It was once thought that 160 acres was the max a farmer could tend. If you are going to harvest & round bale hay, you'll find out quick that 4000 lbs and 40 PTO HP are the minimums for most of the main-line equipment being sold today. Yes you can do some of the operations with less tractor but safety becomes and issue with the smaller tractors.
Farming is not cutting the grass for asetic reasons. You have to produce something IE cattle, crops, grain, vegetables, hay, fruit, nursery plants, etc. to be a farm
 

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