Machinery price discussion .

[Beefsmith]

What’s the longer term view of what is going to happen with prices?
I’ve been around a few dealer yards over the last week or so and generally they all seem to be trying to reduce stock levels. They are reluctant to trade things in and the amount of times I’ve heard ‘you’d be better off selling stuff privately yourself’ I’ve lost count of. I’ve had £8k knocked off a 2 year old telescopic I looked at and that’s without even trying. One sales person from a very large group is genuinely fearful of his job going that he’s actively looking outside the industry for employment.
I’ve been told that we probably we see extended warranties on equipment to try and get the market going again but for me it’s not the warranty that’s the issue, it’s the prices of everything.
I think it’s got to come down to get people to part with money. We aren’t cropping 25% now so that increases the life of our current stuff whilst making new stuff look even more expensive because we can’t cost it out over the full acreage?

 

[mf7480]

I think the manufacturers have knackered the job with putting the kit up so high, so dealers have had to pay too much for the second hand to get the deals and now there’s been a slow down the dealers have been left holding the baby, in the shape of 100’s of millions of £ of overpriced depreciating stock.

The manufacturers have had the cream, and now can’t reduce prices because it’ll depreciate the dealer used stock even more. I’d say the majority of 150-250hp used tractors advertised at main dealers are at least £15k overpriced and the ones I know of for certain are advertised for exactly what they paid for them. There’s literally dozens of 3-4 year old 6155R’s advertised at 100k+, it’s absolutely crackers.

 

[Clive]

Market will ultimately contract to better fit the reduced size of the UK market

1 in 4 dealers wont survive if we loose 25% production

 

[Johnnyboxer]

Market will ultimately contract to better fit the reduced size of the UK market

1 in 4 dealers wont survive if we loose 25% production

That figures, a 25% reduction in cropping will see a 25% in machinery sales/dealers and maybe more, to come
So....what about agronomists/fertiliser companies and spraychem dealers, feed merchants.................what will be their fate??

 

[thesilentone]

The machinery industry has always fluctuated relative to farm incomes, most often affected by the weather. This year the perfect storm is brewing for Agriculture, even more reason that dealers should have a more diverse base, and not be totally dependent on farming for there income.

Tractors registrations are down ytd, but not markedly given all the other factors.

0% over an extended period is usually the first one to break, and we are mugs for a deal.

 

[daveydiesel1]

Just been noticing the amount of stuff put on here by chandlers in the last few days, they seem to have some serious amount of expensive stock in theyr yards. How they sell all that iv no idea

 

[thorpe]

Just been noticing the amount of stuff put on here by chandlers in the last few days, they seem to have some serious amount of expensive stock in theyr yards. How they sell all that iv no idea

it has to be to pay for the advirtising, a chandlers mag inside every mag that come's here vary rarly i look at one!

 

[Clive]

That figures, a 25% reduction in cropping will see a 25% in machinery sales/dealers and maybe more, to come
So....what about agronomists/fertiliser companies and spraychem dealers, feed merchants.................what will be their fate??

same fate - 1 in 4 will go. Market has to adjust to reality ultimately

in fact i would suggest we will loose 80% plus of agronomists over the next few years, it’s a job easy replaced by AI or at the very least AI will allow a much smaller number of agronomists look after much larger areas

 

[maen]

I have a phone call from a well know company that sells secondhand equipment asking me if we were in the market to buy. Going through their phone book I think.

 

[An Gof]

Think I have had a call from the same company. And a fancy list in the post.

 

[Chae1]

Have they started putting prices on machines for sale?

 

[Purli R]

That figures, a 25% reduction in cropping will see a 25% in machinery sales/dealers and maybe more, to come
So....what about agronomists/fertiliser companies and spraychem dealers, feed merchants.................what will be their fate??

Yes but will that 25% get cropped again in 3yrs time? (think thats how long sfi lasts?) Especialy if corn is a good price?

 

[Green oak]

Local dealer selling there in town site for a more industrial one. Fair play to them.

 

[Purli R]

Have they started putting prices on machines for sale?

Been casually looking at 2nd hand loader tractors & I dont think they dare put the price on some!

 

[David.]

I have a phone call from a well know company that sells secondhand equipment asking me if we were in the market to buy. Going through their phone book I think.

They've had a good run, I expect, buying out of the ring and doubling their money.
And I know profit isn't a dirty word.
Perhaps all this means farmers will soon be able to buy at auction without being run up...

 

[Speedstar]

If this weather keeps up there will be a lot less farmers in 3 years time I have never spoken to as many feed up sick people ever

 

[will_mck]

Alot of new and used machinery is a rip off this last few years, all these machinery dealers are welcome to rocket prices as high as they like it just means they'll sell less and less of it. Prices of old wrecks of used farm equipment are laughable now, New machinery prices read like a telephone number. I'm so glad I've enough good, simple, looked after farm gear to see me through the next 10 years or so, hopefully by then the fat will have been trimmed off machinery prices and will be affordable and reasonably priced again. Repair and maintenance is cheap, first lesson we were taught in the Farm Account class at Ag College was if you're buying a tractor keep it until it's worn out

 

[will_mck]

Also if a salesman can knock 8 grand off a two year old telehandler without even enquiring what does that say about profit margins when setting prices? I always try to sell private and buy private. If a salesmans telling you to sell your own machine, if you've looked after it he's unwittingly giving you good advice.

 

[David.]

But business exists to make money, and a sale requires a willing buyer.
Stupid greedflation new prices have dragged up good secondhand.
You will, I fear be wrong about it having sorted itself out in 10yrs, the industry will rationalise and you will be given a take it or leave it price, from fewer dealers to quote from.
The real problem is that their prices reflect inflation, and technical advances, whereas our output prices stagnated in the mid 1980s.

 

[alomy75]

same fate - 1 in 4 will go. Market has to adjust to reality ultimately

in fact i would suggest we will loose 80% plus of agronomists over the next few years, it’s a job easy replaced by AI or at the very least AI will allow a much smaller number of agronomists look after much larger areas

I’m surprised more farmers don’t do their own agronomy; I could see that account for an 80% drop. AI on the other hand…I doubt it. A drone can’t walk into some wheat, pull the crop over to see what disease is lurking in the canopy and advise accordingly. Farmers see their agronomist as a friend in many cases; someone to talk to. The only thing AI would be useful for maybe is fert recs based on reflectance…so yes, maybe as an agronomy aid as you say but I can’t see numbers dropping at all unless you’re a multiple agronomist farm