What's really going on in the machinery business?

Jim Bullock

Never Forgotten
Honorary Member
I just wonder how many machinery dealers will be able to weather the present storm.? If you look at the portfolio of second-hand kit available from some of the big dealers I would have sleepless nights worrying how to divulge myself of it... The only benefactors will be the finance companies who underwrite not only new but second hand kit sitting in dealers yards.
Its a bit worrying that the likes of JD and AGCO are reporting dramatic drops in sales (15-25%). I suppose the UK is hardly worth a mention about in global terms but with barley at around £90/ton and wheat at circa £100/ton for harvest 2016 who is going to be investing in new kit in 2016.?
 

Clive

Staff Member
NFFN Member
Location
Lichfield
So where are all these cheap tractors and machines then?

i bet i could buy cheap used combine right now, some must be desperate for a bit of cashflow

I doubt new prices will fall but if they want to move the tonnes of used stock thats sitting about then something has to give eventually

price is usually set by supply and demand - right now supply significantly exceeds demand I reckon?
 

quattro

Member
Location
scotland
I just wonder how many machinery dealers will be able to weather the present storm.? If you look at the portfolio of second-hand kit available from some of the big dealers I would have sleepless nights worrying how to divulge myself of it... The only benefactors will be the finance companies who underwrite not only new but second hand kit sitting in dealers yards.
Its a bit worrying that the likes of JD and AGCO are reporting dramatic drops in sales (15-25%). I suppose the UK is hardly worth a mention about in global terms but with barley at around £90/ton and wheat at circa £100/ton for harvest 2016 who is going to be investing in new kit in 2016.?
Maybe obvious but why will finance companies be the only benefactor
Jd won't go drop new prices by a chunk because their dealers will never sell all their x hire /stock tractors they have sitting
 

PSQ

Member
Arable Farmer
Location
Scottish Borders
even if they do someone will farm the land - they will still need kit to do that


The sensible approach would be to fallow it through crap prices, while watching the Quadtrack and Lexion brigade farm themselves into the ground. These guys are up to the eyeballs with rents and payments on kit, that they don't have any alternative but to 'toss off' another crop 'just in case the price goes up' :facepalm:

That debt on that stupendous business model won't service itself...
 

quattro

Member
Location
scotland
It's not necessarily the dealer that's at fault for prices coming down we hold on to grain hoping prices will go up there maybe hoping they'll get the price they want for that machine they have sitting
 

rich8100

Member
Location
dover Kent
Nearly all new machines get taken by contractors. And its a finance set up that means the dealers make money.

And they know the contractor will be back in 3-5yrs to chop it in to get more new machines on finance.

And of course the now old machines will be sold off either at price to pay the remaining left on them or just to move them on.

Lets face it a price machine drops quickly once it leaves the dealers forecourt.

So although there may be a large number of used machines for sale at what seems a reasonable price, there are contractors, both agri and building such as highways getting the new shiny stuff.
 

bluegreen

Member
Which dealers will be under the biggest pressure I wonder.........................Our local AGCO dealer literally has no less than 15 Challengers parked in their yard and the majority are trade ins, that's a million pound plus of machines that have no obvious homes to go to!!

Claas must have a huge number of expensive secondhand Lexions sat in their various dealerships....................I just hope they don't bank with Deutche bank as they appear to be sinking fast according to Zero Hedge.

Many Deere dealers are loaded up with huge amounts of ex hire tractors as has been mentioned and lots of secondhand big 7 and 8000 series tractors.
Export markets appear flat for a myriad of reasons that wont be solved anytime soon.

And seeing as the world has just embarked on a huge downturn that thankfully the UK has so far avoided, I don't see machinery sales booming anytime soon..............there will no doubt be more dealership mergers on the way.
 

Make Tax Digital Software Poll

  • Quickbooks

    Votes: 33 16.5%
  • Sage

    Votes: 20 10.0%
  • Xero

    Votes: 93 46.5%
  • Other

    Votes: 54 27.0%

Man fined £300 for bonfire-related waste offences

  • 202
  • 0
Written by William Kellett from Agriland

court-640x360.jpg
A man has pleaded guilty at Newtownards Magistrates’ Court to waste offences relating to a bonfire next to the electrical sub-station on the Circular Road in Newtownards, Co. Down.

Gareth Gill (51) of Abbot’s Walk, Newtownards pleaded guilty to two charges under the Waste and Contaminated Land (Northern Ireland) Order 1997, for which he was fined £150 each and ordered to pay a £15 offender’s levy

On June 25, 2018, PSNI officers went to Gill’s yard, where they found a large amount of waste consisting of scrap wood, pallets, carpet and underlay.

Discussion with Northern Ireland Environment Agency (NIEA) officers confirmed the site...
Top