Machinery
Updating machinery in 2023
We have a few items on our list for updating in the near future. An 8320rt, a 4830 sprayer, and a 1770NT planter. I priced out a trade to upgrade my 2016 8320rt for a USED 2021 8370rt with 600 hours and they want $234K to trade. I paid less than that for the 8320 3 years ago! The cost has more than doubled. In your opinion, is there any chance the good used machinery market drops? Or are we at a "new normal?" Will used 8370rts always be nearly $500K?! I can't fathom how anyone can make these new numbers work. We are lucky to have very good off-farm income, and I can't imagine paying that for a used 370 horse tractor. Thoughts?
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We just bought a brand new forage harvester from ****************** they treated us very well on the trade.
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SO glad I didn't run out and buy because I want. Grain prices stink, interest rates still high, crazy equipment prices. Sounds like equipment inventory is going up and that will mean prices will start relaxing.
I'll live with what I have for awhile longer.
the numbers work with a lower cost of living. The avg farm size will need to increase in size substantially. The tech stack coming in DE is powerful and the other OEM (machinery competitors ) don’t have the same product offering (quality). Stay current and pay the piper. Could there be some better deals ahead - yes. We getting to the 2018/2019 bottom of cycle deals ? Unlikely. Jus...
we are selling this nice good running great 75 MF tractor, Asking 9,500 OBO
Hello sounds like you have a great farming experience and equipment. What do you produce ? My name is ********* I am daughter of My Father who was a great farmer also, I wish I was old enough to learn more from him when he was so active.
I am interested in learning how to farm in MN due that I am planing of moving there to be close to family members. I was hoping to find a farm that ...
Another thing to think about is next model year newer. 8R 370RT with same amount of hours. What’s the price difference there? Will older model depreciate faster? Better programs on newer model? Or do you want to be the guys that trades at 600 hours and keeping up with warranty and depreciation.
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Anything JD is way overpriced. If it is just a tractor I would dump them and go a different route but not case or nh either…
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I just traded a JD 4730 sprayer for a 2021 4440 Case instead of a JD and save $30,000 . Deere has priced themselves out of my market!!!!
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if the 8370 value drops also means your 8320 value drops also
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Based on the current data I believe tractor prices for >100hp are going to continue to trend up for the next several years. For the >100hp segment demand is very high and supplies are low. Just my observation
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have to stay updated with current equipment. It’s like running a business with an old computer. Not a great idea long term. It’s just the cost per acre. I found that number to not be up 50 percent cause of trade in value. Profit wise it’s palatable. Balance sheet use of new equipment is a little scary !
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I hear guys saying they’ve got $100/acre in harvesting between combine and cart and the labor… I do custom harvesting and charge $45/acre with combine and cart and people think I’m high priced… I don’t understand what pencils guys use today to justify a $800k combine plus $150k for each head… I know old school math not common core so maybe I need updated..
when the price of the new equipment you want decreases, so will the trade value of your trade ins.
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lol Do percentages on $$$ amounts My combine might go down 20% in value big deal that’s 20k 20% down on a 400k is 80k
********** *************. Interested
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At Tractor Zoom we track 65% of all machinery transactions. Right now, we do not see any leading indicator pointing towards a slowing 300+ HP tractor market. In fact, it is a bit stronger today than it was in December. That said, we do not expect the market to continue rising, but holding steady, based on farmer cash on hand, low supply and 2023 net farm income outlook. Attached is a Market Index ...
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this is a crazy market!!! I truly believe it powered mostly by dealers. The prices are stupid high on new. And it doesn’t seem that our good used trade values are going up. Makes it hard to br able to trade.
This is the type of information I need! My local dealer is $100k higher on their 2021 price, and $40-50k low on my trade, according to your averages. WOW. Thanks!
to update your planter, if you don’t care about going 10mph, you can buy great used row units from a guy like me who took mine off to upgrade to a high speed planter. I’d sell you the used row units in excellent shape for a very cheap price. And I’m sure you can find lots of others like mine for sale.
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we buy old iron you can go buy a decent 2010 385 Steiger for 90k. That’s how we get big horse power for cheap and less electronic issues too
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What are hours on your ****?
ALl the costs are stupid high. I get equipment after it is worn out and fix it up so I can run it. It's the only way I can make equipment work.
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We have a smaller size tractor & farm less acres than most. We usually trade when extended warranty is up, this time it will cost us 50 percent more dollars/hour to trade. How ever if one has a major component failure it would be cheaper to trade for us. If nobody buys new, there will not be any used.
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If we cannot reasonably count on 8,000+ hrs on power Eq., 4000 on sprayers, 4000 on combines with appropriate maintenance, we have purchased the wrong color. With that said, if opportunities arise they can go sooner…
If we cannot reasonably count on 8,000+ hrs on power Eq., 4000 on sprayers, 4000 on combines with appropriate maintenance, we have purchased the wrong color.
I am of the opinion you can sink a lot of repairs into something, before you even come close to cost of updating to newer, not even talking about new
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Exactly. We have changed from trading fairly regularly to buying equipment that is as new as we can get pre emissions and fixing it long term. Trying to get equipment (fixed) costs per acre as low as possible to try to make room for increased variable input costs.
not worth it imo The age of my equipment I might as well run as long as I can I’d rather start hiring some things done rather than update equipment at these prices
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We have thought about upgrading but came to the realization that it will be better to stick some money into what we have for the next few years!
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****, have you looked into Fendt at all? I work for Ziegler in Iowa and we get lease returns on equipment that have a few hundred hours on them and I think they’re pretty competitive to Deere. It’s easy to switch from Deere too cause ********* offers a kit to install all your Deere auto steer equipment and it ties into the factory equipment on the tractor. No need for any extra planter monitors or...
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In 2022, I leased a new Fendt 942G6 to replace the 2014 JD RT I was using to plant with. With other odd jobs other than planting, i put 500 hours a year on these tractors. The lease payment for the Brand New 2022 Fendt cost less than the lease payment for the 2014 JD 8360RT. Furthermore, FAR LESS repairs with the new Fendt and certainly has more features. I refer to it as the Mercedes-Benz of trac...
I only run 250 acres so updating machinery at current prices doesn't pencil out. I'm trying to get more profit per acre instead. I did fungicide the first time last year and that paid off very well. This year I'm trying micros and more cover crops. I'm sticking my profits into that and paying off debt faster. Will have farm debt free this year!!! When the collapse comes I will be in a position to ...
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*****, I do agree with what your saying. I've also been working on min. Operating loan. At this point I'm not willing to buy a tractor that's almost doubled in price from only a couple of years ago. I'm looking at how I can make more money per acre. Paying current prices for machinery is like flushing money down the toilet for me. I added auto steer to tractors that run planter and fertilize ( tha...
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***************, in my humble opinion there are two ways of looking at paying down debt aggressively.. what holds more value? ..minimal low interest debt or cash on hand. I am going to continue to make scheduled payments on my fixed interest loans (my machinery debt is fixed at 4.25 or less, land debt fixed at 3.75)
Inflation is 3x my debt interest rate and operating is at an all time high (6-9%...
I've done the same with rye cover crops and adding Agzyme fertilizer to my farm. Amazing results on marginal land. Best soybeans ever for that farm.
In my area a dealer said last fall that 2023 would be tighter than 2022 for new equipment. That doesn't necessarily mean prices will go up though. I think we'll need to burn through on farm cash or new equipment prices soften before we see things go down a bit more on the used side.
I'm guessing a new 8370rt must be 550-600k+? 600hrs is barely broke in so I'm not surprised that it "only" dropped...
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Our local dealers have all said supply is already far better than 2022. I wonder what the difference is in supply among different regions? Still higher demand in your area? I've given up on looking to trade anything in for the time being, except for the combine. A 31% price increase in 2 years on the same model of tractor left me laughing at the quote for trade. We have a dealer we work well with ...
It is going to take a 7 year depreciation cycle to get thing straightened out. The manufactures lost 2 years of normal production and they have no way of making up for it. The used equipment market is making up the difference right now. Now that new prices have adjusted they should stay a little flatter until the end of the 7 year depreciation cycle when they start to seem "reasonable" again. Depe...
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Hi ****, I currently have a 1770NT 16-30" that I'm going to use this spring and then plan on selling that and getting a 24-30"... Is your plan to get rid of it before this spring planting???
Thanks
****** ***********, Minnesota
************
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Prices will follow the market. Falling demand will lower prices.
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For companies to lower prices, they would have to admit they were unnecessarily high…I doubt that will happen, they may offer some discounts that disappeared and interest incentives. A good example is where Ford was adding “market adjustments” of up to $10,000, and now they discover how customers react.