Tractor Price Inflation

[Lincsman]

T6 165 I can't find an example to illustrate new, but ex hire 2020 model T7 210 with c.1200hrs (good bit bigger and higher spec than a TM155) can be had for about £75k from my local NH dealer

I think at least a T6.175, this 155 used to pull a 6 Furrow dp7 and press.. its like a 200hp tractor !

 

[Spud]

I think at least a T6.175, this 155 used to pull a 6 Furrow dp7 and press.. its like a 200hp tractor !

A T7 210 is 165 rated and 210max power. A standard TM155 is no where near that level.

 

[Lincsman]

A T7 210 is 165 rated and 210max power. A standard TM155 is no where near that level.

You haven't driven one then! No emissions stuff or ad blue remember.

 

[Spud]

You haven't driven one then!

I've driven both as it happens. Different tractors.

 

[Spud]

You haven't driven one then! No emissions stuff or ad blue remember.

What are you trying to do, talk up the price of new tractors?

As I said, a T7 and a TM are very different tractors, from eras nearly 20yrs apart. I'll bet folk buying TM155's in 2003 thought they were power sapping piles of shite compared to TW25's 20yrs before!!

I do think folk often buy bigger tractors than they need, for reasons of perception, 'progress', vanity, or simply not understanding the difference between an engine governing and struggling.
It's also important to remember that it takes less power to pull 25% more weight than it does to pull the same weight with 25% more speed

 

[Bossfarmer]

It doesn’t stack up if people use their calculators properly. Mainline franchised dealers just say ‘machinery is cheaper than labour’ with smug looks on their faces. I won’t ever buy a new tractor again and likewise I can’t afford to sell a tractor again. We’ll keep what we’ve got and keep buying used when we can afford it so we end up with everything self propelled doing 150 hours a year. It’s the only way we can carry on.
That way we’ll get a ‘repair’ every 4-5 years per tractor but we’ll continue to annually service even on the low hours. That’s what will be instilled in the younger generation coming through as well.

I’ve a very good friend who is an owner occupier on 4000ac. He’s a very shrewd cookie who’s got a number of non Ag small business’s as well. His finger is on the pulse and he knows his costs inside and out. He refuses to buy anything new citing the job can’t justify the costs if he wants to make a profit without subsidy which is going anyway now. He got so p****d off with dealers trying to overinflate used equipment prices to him because of who he is, because in their eyes he should be buying new, that he now refuses to deal with them. Instead he’s buying everything at sales and private adverts. He’s closed accounts at majority of the dealers as well and that’s caused some of them to bad mouth him. All it’s doing is putting other farmers off using these dealers. And before anybody says he’s a silver spoon farmer, he’s not. His grandfather bought 800ac in the 40’s totally funded by the bank and nearly bankrupted himself a few times doing so. Then my friend and his father have turned that into 4000ac since then. They’ve never sold an acre for building nor have subsided the farm with any outside money. They’ve done it by running old equipment and looking after it in house. They’ve sailed close to the wind a few times servicing mortgages over the years but now are a few years away from being mortgage free. That set up is a dealers wet dream, but in this case, not.

what type of farmer is he? veg? potatoes?

 

[Bossfarmer]

Think stuff in NZ is a lot dearer than here.

@FonterraFarmer ,@NZ Tech ,@NZDan ,

so why do people blame uk tractor prices on the subs? the reality is that farming has changed, a lot of the people buying new are probably farming a lot more acres than they used to

 

[glensman]

so why do people blame uk tractor prices on the subs? the reality is that farming has changed, a lot of the people buying new are probably farming a lot more acres than they used to

The same thing has happened with excavators too though.

 

[GeorgeK]

Almost makes you feel sorry for the poor fellas who can't be seen driving something that's not the newest, biggest, ultra premium luxury spec (stealth hero edition)

 

[Suckndiesel]

What price are they in new zealand?

Around 25% more the last time I was talking to someone from there about it, back in 2014

 

[Gedd]

Why even print these list prices? Car prices don't get much off list

For finance can only finance 50% of retail price

 

[Battlefield Machinery]

You can buy tractors at a very comparible spec to the original NH’s mentioned, but in my opinion it depends if you are wanting to up spec! If not we could sell you new tractors very similar to the Tm and TS got just over 1.5 times those original prices.
Spec and a clamour for more power has pushed prices considerably higher than just inflation in prices (as well as emmisions!)

 

[farmerfred86]

Been several years since I looked at the price of a brand new tractor. In fact 2005 was the last time!

Back then it was possible to buy a TS115 New Holland for around £30k ish and a TM155 for less than 40k from memory. I just read this week's Farmer's Weekly and there is an article comparing 160hp tractors and they are all around £100k!!!!! About 2.5 times the price of a equivalent size TM155 15 years ago.

How does this stack up? Seems a huge jump in price! Has anyone worked out the annual inflation rate for tractors? Must be way higher than the UK general inflation rate?

There is going to be very little machinery sold now unless its a cost reducer. Confidence is low, the warnings are all there and those who haven't heeded the warnings will have a shock buying new machinery on long finance options!

 

[FonterraFarmer]

Think stuff in NZ is a lot dearer than here.

@FonterraFarmer ,@NZ Tech ,@NZDan ,

Has been not uncommon in the past for machinery to be brought in by bypassing the franchising dealers, not just farm machinery but cars too.

 

[FonterraFarmer]

Almost makes you feel sorry for the poor fellas who can't be seen driving something that's not the newest, biggest, ultra premium luxury spec (stealth hero edition)

You'd loose more money in the first year of depreciation on your new hero status car or pick up in the UK than what my nearly 40 year old ute is worth...

 

[Frankzy]

You haven't driven one then! No emissions stuff or ad blue remember.

Ad blue is the only emission stuff that FPT engines uses.
And ad blue doesn't affect the engine in any way remember.

 

[Flat 10]

I think at least a T6.175, this 155 used to pull a 6 Furrow dp7 and press.. its like a 200hp tractor !

And my 125HP Deere pulled 5 and a press....
I doubt a new one would.....

 

[woody 1]

So as someone with four tractors between 3 and ten yrs old, all doing about 1000hrs/yr , and two more either side of 20yrs old doing about 600hrs between them, what is the answer?

The youngest has 1500hrs on, the oldest a bit over 11,000, with a reasonably even spread (bar two on 6000)

We used to buy new, but haven't since 2015, instead finding low houred second hand replacements. If new tractors aren't sold, where will the second hand ones come from?

Like for like, the last tractor I bought in 2015 is now £108k, an increase of 20% in 5 yrs. The predecessor was £48k in 2008, so even allowing for greater spec, prices still almost doubled in seven years.
You don't need to be einstein to work out that this isn't sustainable.

As a potato grower, more medium sized tractors are better than less bigger ones, but we've taken measures to reduce average clock hours per acre, but we're tickling the edges really.

Ideas welcome!

I don't think your maths is quite right here is it ?

3 years old and doing a thousand hours a year but only done 1500 hrs !!

 

[Spud]

And my 125HP Deere pulled 5 and a press....
I doubt a new one would.....

Why wouldn't it?

 

[Spud]

I don't think your maths is quite right here is it ?

3 years old and doing a thousand hours a year but only done 1500 hrs !!

Only bought it in August this year with 1200hrs on. Nowt wrong wit maths lad