Machinery Spends winter/spring 20-21

[Battlefield Machinery]

So I have a pile of winter/spring stock order policies sat on my desk...and i just thought I’d stick a finger in the air and see what people are thinking for the next 6 months...we are very fortunate to deal with all sectors so have a good even spread of farming customers, but my biggest quandary is...will people buy machinery or pay the tax to leave some cash in the bank...post brexit...thanks in advance

 

[Steevo]

I will buy something if I need to, but trying to avoid it if at all possible. Too many other directions I need and want to spend money than on machinery.

 

[blue power]

We will be getting some new machines but it won’t be for the farming side of the business.

 

[farmerdan7618]

I would expect purchases of larger items to be pre Christmas this year, as the Annual Investment Allowance is still planned to fall back to 200k from January 2021, and accountants will advise the timing to be pre Christmas for tax planning.

For smaller purchases, dairy has had a reasonable year outside of those selling to the likes of Freshways, so I would expect a similar spend to 2020

Beef is now performing fairly well, but from a low base, expect an increase in spend over 2020, but only a modest increase.

Arable has had an awful year in most cases, farmers will probably keep their hands in their pockets for all but essential purchases, same for roots and veg.

Sheep has a much lower demand for machinery, mostly bought as the need dictates, so expect little fluctuation year on year.

As for contractors, that business should have a plan in place for when kit is replaced, and your customers could likely tell you now what they plan to buy next year.

That's my view, however it is worth as much as you pay for it

 

[Wellytrack]

Build a tower, Dig a moat around it, fill it with spikes and crocodiles and place the cheque book upon a purple poof encased in a glass box with a 60 watt light bulb illuminating it.

 

[Steevo]

Build a tower, Dig a moat around it, fill it with spikes and crocodiles and place the cheque book upon a purple poof encased in a glass box with a 60 watt light bulb illuminating it.

C'mon.....all that would be childs play compared to getting some farmers to take their hands out of their pockets to buy a cup of tea and a bacon roll!

 

[David.]

Unsure if in these enlightened and inclusive times we ought to be referring to enpurpled poofs.

 

[D14]

So I have a pile of winter/spring stock order policies sat on my desk...and i just thought I’d stick a finger in the air and see what people are thinking for the next 6 months...we are very fortunate to deal with all sectors so have a good even spread of farming customers, but my biggest quandary is...will people buy machinery or pay the tax to leave some cash in the bank...post brexit...thanks in advance [emoji106]

Cheque book firmly shut. I’ve got stuff I need to change but it’ll be along the cards of trading 2-3 items in against 1 coming back to me with no money exchanging hands bar transport costs. There won’t be any big purchases on the cards for a few years until everything’s settled down re brexit and elms.

 

[Sid]

I am sure there are plenty just waiting for the last big BPS cheque to burn a hole in their pockets.....

 

[traineefarmer]

Crap harvest means any surplus we may have had for new toys is being reserved for feed and bedding purchases if needed in the spring.

 

[rusty]

I may upgrade the spread a bale to a new one later in the winter depending on cash flow.

 

[Tarw Coch]

Cheque book firmly shut. I’ve got stuff I need to change but it’ll be along the cards of trading 2-3 items in against 1 coming back to me with no money exchanging hands bar transport costs. There won’t be any big purchases on the cards for a few years until everything’s settled down re brexit and elms.

Never tried it, are there many dealers out there prepared to take in several items of second machinery for one new one with no cash changing hands?
@Battlefield Machinery

 

[Steevo]

Never tried it, are there many dealers out there prepared to take in several items of second machinery for one new o e with no cash changing hands?
@Battlefield Machinery

I'd think you'd get a pretty poor deal if doing that. Dealers are in the business of changing machines for cash, they really don't like trade-ins as it doesn't release any cash. Taking three trade-ins in exchange for a single machine means that after that deal they then need to sell three machines to get their money back. They'd much rather sell the single machine to someone who has cash.

 

[Tarw Coch]

I'd think you'd get a pretty poor deal if doing that. Dealers are in the business of changing machines for cash, they really don't like trade-ins as it doesn't release any cash. Taking three trade-ins in exchange for a single machine means that after that deal they then need to sell three machines to get their money back. They'd much rather sell the single machine to someone who has cash.

Pretty much my thoughts, suppose the dealer will do almost anything if there’s money in it for them but this makes getting a profit harder work and more risky for them, with more capital tied up which would all need to be reflected in the price offered. I would think one of the biggest considerations would be how saleable the items were, if they’re known good sellers or they have a customer looking for one it might be on, if theyve got it stuck in the yard for months on end before dropping in a collective sale they’ll probably wish they’d never bothered

 

[teslacoils]

Not buying anything. But have spent some dosh on tarting up the old loader and will do some work on the prime mover.