Brexit machinery prices

[holywell farmer]

just out off interest do any think prices will spike post Brexit in 2019

 

[Adeptandy]

Can they go any higher, getting hard to justify spending as it is now

 

[icanshootwell]

Yes go and buy as much as possible, because according to the bbc, the world is going to stop turning 2019, you have been warned.

 

[Adeptandy]

Proforge stuff up by 10% at Christmas I've been told

 

[holywell farmer]

Can they go any higher, getting hard to justify spending as it is now

Well my uncle said to me check book closed for any machinery replacement at his farm, possible looking at next slurry tanker for spring 2018 though, maybe if farmer or contractor bit the bullet and buy early before Brexit happens

 

[Pheasant Surprise]

just out off interest do any think prices will spike post Brexit in 2019

Yes. Almost with complete certainty. There is another emissions tier to step up to (Stage V) and unless something miraculous happens with our negoatiations with the EU there will almost certainly be another series of currency devaluations, and machinery price uplifts, such as we’ve had in the last 12 months. Better be prepared for a rocky ride!

 

[holywell farmer]

Yes. Almost with complete certainty. There is another emissions tier to step up to (Stage V) and unless something miraculous happens with our negoatiations with the EU there will almost certainly be another series of currency devaluations, and machinery price uplifts, such as we’ve had in the last 12 months. Better be prepared for a rocky ride!

Farmers still buy kit, you need to upgrade to get job done somtimes

 

[icanshootwell]

My advice, dont do anything, just carry on as normal, i dont think any body really knows, and most wont realize its happening .

 

[stevedave]

Yes Brexit is as good an excuse as any to put up prices.

 

[GTB]

It's never worth trying to second guess the market. If something needs replacing then it needs replacing, otherwise leave well alone.

 

[Adeptandy]

Slight twist to this then, assuming a purchase is made, 3 year finance or only purchase if you have the funds to write the cheque ?

 

[Pheasant Surprise]

Farmers still buy kit, you need to upgrade to get job done somtimes

Sure you need to factor in the affordability, each business will need to look at that given their own circumstances, but given current farm incomes, a squeeze on exchange rates, Brexit and emissions Tier costs, something will need to give.

Personally I can’t see machinery getting any cheaper in a hurry based on present circumstances and what we know for certain to happen - a 30 % uplift on like for like based on 2016 prices wouldn’t be out of the question. Unless there is a global catastrophe which fundamentally alters supply I can’t see incomes rising by that amount, can you?

 

[GTB]

Slight twist to this then, assuming a purchase is made, 3 year finance or only purchase if you have the funds to write the cheque ?

Not many farms can afford to buy kit outright even in the good times?

 

[Adeptandy]

Not many farms can afford to buy kit outright even in the good times?

Wasn't thinking tractors, more the £20k ish sort of stuff

 

[Shutesy]

Farmers still buy kit, you need to upgrade to get job done somtimes

It's a fair point, if you don't upgrade for a number of years then suddenly a large proportion of kit might need changing. BUT if prices go up that much you can't just upgrade because you need to if you can't afford it.

 

[GTB]

Wasn't thinking tractors, more the £20k ish sort of stuff

20k is an expensive machine around here and I would think most would use finance to buy it.

 

[farmerm]

For input prices to go down Sterling has to go up but that would then drag down our crop prices and then we are back a square one..

 

[Adeptandy]

20k is an expensive machine around here and I would think most would use finance to buy it.

Its not just me then, thats a relief

 

[GTB]

Its not just me then, thats a relief

Certainly not just you.

 

[Fish]

Maybe we will have to be like some American farmers and just keep old stuff running, plenty of 20/30 and 40 year old tractors still running over the pond.