Fantastic conversation. Machinerypete's view of the situation from the inside is awesome.

I think you have a pretty good idea of what is currently going on. I also don’t know what it’s going to take to correct it. Once the used market is dried up or used up the producer has two options. Fix the older stuff up if you can find the parts or buy new at an inflated price because there is only so many available by design. Of course this makes what used is left worth more because of demand. I have been told that some of one manufacturer’s new leased combines that are not bought at the end of lease are not going on lots to be sold, but instead scrapped. If true it is decreasing the used supply which in turn forces farmers to buy new or lease new which is more profitable for the manufacturer. The other thing that I think is driving the good quality used market is that people are finding out that the new stuff isn’t as reliable. In this business reliability is everything . You can’t have a machine in the shop for a week or two in the middle of the season. So people are willing to pay more for something people know will run and run . The online bidding is indeed good for the seller, but bad for the buyer. You now have to bid against people that would normally not be there which makes it harder to get a good deal . I personally don’t like not seeing who I’m bidding against. I feel the potential for unethical behavior is greater.

@jared2.028

Жыл бұрын

You explained it well and have a grasp on the whole machinery situation. It is not just ag machines but others also. Alot problem is dealers set price and only get limited supply in also to keep prices inflated. Im just gonna run my older stuff and fix it up. It will last me a long time and after i need new machines ill probably just rent out or sell out im not going to be spending these crazy prices.

@shortytari

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@@jared2.028 yea we’re doing the same thing.

Great Interview

I believe the best bargains in machinery the past 2-3 years has been by buying brand new, not used, and using JDF with cheap interest rates.

Fixing supply chain issues is what changes things. When the manufacturers have the supply they need their competitive nature takes over. It is human nature. In other words, when they have capability to build and a buyer wants to buy they can’t say no. That would be economic suicide.