Green Tractor Talk banner

1 - 20 of 32 Posts

·
Registered
Joined
·
1,701 Posts
Discussion Starter #1
2018 at our dealership was a good one. We were slightly above average profit compared to other AG dealers in our group. Sales are brisk but sales lost big in 2018. Mostly due to big iron laying on the yard. Parts are parts. . who knows. I have noticed more people have decided to repair rather than replace. We have seen hefty repair bills on older units rather than trade in. Maybe you guys can explain that better. I think thats why service did so well. Most of the time parts carries the store.. Not this last year. 4 service trucks on the road helped a lot. We expanded and it worked.
We are off and running and 2 weeks behind already on lawn and garden in February. Winter specials have paid off. I have worked the last 6 Saturdays to keep up. Company is reluctant to hire more people to keep up. So we have been getting hired help from other locations that are slow. Makes sense.

Sent from my LGL52VL using Tapatalk
 

·
Registered
Joined
·
1,342 Posts
Is this happening to all dealers? If so I can lean on mine to get me a killer deal on an X738!
 

·
Registered
Joined
·
2,149 Posts
In 25hp plus, think people are leary of new models with regen systems on them? I know I would prefer the older, keep it simple engine.
 

·
Senior GTT Super Slacker
Joined
·
36,093 Posts
People may be holding off. Wait until the 2018 tax refunds start being sent out. With the standard deduction now being $24K (married filing jointly) I would guess sales will go up.
 

·
Registered
Joined
·
12,545 Posts
Farmers are suffering right now, it's one of the toughest businesses to be in, I can't remember the last time I've seen a brand new tractor sitting in anybody's yard. I know around here it's like this:
Service/parts carry the AG side of the business, while sales carry the residential side.
 

·
Senior GTT Super Slacker
Joined
·
36,093 Posts
Farmers are suffering right now, it's one of the toughest businesses to be in, I can't remember the last time I've seen a brand new tractor sitting in anybody's yard. I know around here it's like this:
Service/parts carry the AG side of the business, while sales carry the residential side.
I friend of mine has a huge dairy farm, during hay season he rents or leases 3 or four big John Deere tractors with cabs, never buys new.
 

·
Registered
Joined
·
3,687 Posts
I worked for my brother-in-law in the 1970's on a large farm,,
and I have always enjoyed reading the farm magazines passed on to me from my sister,,

Over the last 40 years, the equipment business sounds like a broken record,,
very similar, year after year, after year,,, :dunno:

I hear people think consolidations will change things,, but,, it seems everything is still the same.

I guess there is only so much :gizmo:,,, somehow certain dealers survive with that income,,, :flag_of_truce:
 

·
Registered
Joined
·
1,701 Posts
Discussion Starter #9
I friend of mine has a huge dairy farm, during hay season he rents or leases 3 or four big John Deere tractors with cabs, never buys new.
We do alot of leases also. We have a large farm that leases all the big stuff. Their lease is around 3 mil a year. When they hit 500hrs it comes back. We service and repair, wash and detail. It gets sold at a steep discount with a full factory warranty.

Sent from my LGL52VL using Tapatalk
 

·
Registered
Joined
·
582 Posts
People may be holding off. Wait until the 2018 tax refunds start being sent out. With the standard deduction now being $24K (married filing jointly) I would guess sales will go up.
Yeah, that may not come to pass...

The average federal income tax refund was $1,865 — down 8.4 percent — from the average of $2,035 for the same week in 2018.
https://www.freep.com/story/money/personal-finance/susan-tompor/2019/02/08/early-tax-refund-amounts-smaller/2813134002/

I suspect what happened was the new tax law adjusted people's deductions giving them more on each check but the new rates and increased standard deduction were more than compensated for by the loss of the personal exemption ($4,050 for the taxpayer and each qualifying child) and the cap on state and local tax deductions.
 

·
Registered
Joined
·
487 Posts
I looked at alot of dealers at new 30ish hp machines.
I hated the idea of having to deal with the regen so I bought used, 2720.
For me its seems to be really good so far.

I also don't mess with the dealers, do all my own maintenance, if I have an issue I can't figure out I'll call dealer otherwise I never darken his door.
 

·
Registered
Joined
·
4,972 Posts
Farm Economy

Farmers are suffering right now, it's one of the toughest businesses to be in, I can't remember the last time I've seen a brand new tractor sitting in anybody's yard. I know around here it's like this:
Service/parts carry the AG side of the business, while sales carry the residential side.
You are completely correct on the state of the farm economy. It's tough and likely to get worse before it gets better. Dairy is terrible and they are heavy users of equipment as something is always running on a dairy farm. But with milk prices where they are, what money there is available is going to pay the feed bill (hopefully) and whatever repairs are absolutely necessary. There's not any money for new equipment.

Grains are a little better. Not a whole lot better but dairy is so bad that grain farming looks better than dairy. We have large carryover stocks of most grains so there's little incentive for end users to pay a reasonable price for grains. When ethanol and biodiesel started being produced, there was terrible hue and cry about using food for fuel. Guess what? Grain production ramped up pretty quickly to exceed demand and now there is a bit of an overstock situation.

2018 was a year for most farmers in our area to just get through. Low prices, way too much rain and generally tough conditions made for a long year. 2019 is starting out to look the same. I'll hear a presentation in a couple of weeks from the chief economist at American Farm Bureau but I don't expect he will be saying things are great.

Deere has the advantage of having several product lines- ag, construction, forestry and consumer. Ag is definitely depressed but the other three have some life so while an individual dealer may be hurt if they are solely or mostly an ag dealer, Deere corporate may not see a large impact as the other lines pick up the slack.

Treefarmer
 

·
Registered
Joined
·
12,545 Posts
You are completely correct on the state of the farm economy. It's tough and likely to get worse before it gets better. Dairy is terrible and they are heavy users of equipment as something is always running on a dairy farm. But with milk prices where they are, what money there is available is going to pay the feed bill (hopefully) and whatever repairs are absolutely necessary. There's not any money for new equipment.

Grains are a little better. Not a whole lot better but dairy is so bad that grain farming looks better than dairy. We have large carryover stocks of most grains so there's little incentive for end users to pay a reasonable price for grains. When ethanol and biodiesel started being produced, there was terrible hue and cry about using food for fuel. Guess what? Grain production ramped up pretty quickly to exceed demand and now there is a bit of an overstock situation.

2018 was a year for most farmers in our area to just get through. Low prices, way too much rain and generally tough conditions made for a long year. 2019 is starting out to look the same. I'll hear a presentation in a couple of weeks from the chief economist at American Farm Bureau but I don't expect he will be saying things are great.

Treefarmer
There was an article in a local paper about a month ago, local politicians telling farmers that they need to diversify. One example they gave was growing hogs to offset the low price of milk :banghead: dumba$$es, so a farmer who can already barely afford to feed the cows that are his lively hood would now have to buy feed for the hogs, probably have to build another barn to house them. On top of all of this it is obvious that they have not seen how much the actual hog farmer gets paid compared to how much it cost his wife to buy a package of pork chops at the grocery store. Granted hogs will eat almost anything you throw at them, but like everything else, there is a right way and a wrong way to do things.
Now on the other side of things, there is more and more land that is just becoming overgrown from lack of maintenance. Years ago if you were sitting on a couple hundred acres you could have a bidding war from farmers wanting to use that land. Now there is far more land than farmers. In a bitter sweet twist it opens the door for anyone with a tractor and brush hog to make some money, I already have a couple of pretty decent size fields lined up for later this year, they are big enough though that my FIL and I will tackle them together with two cutters.

Moral of the story, go buy a pig and all of your worries will go away. :munch:
 

·
Registered
Joined
·
4,972 Posts
Lol

There was an article in a local paper about a month ago, local politicians telling farmers that they need to diversify. One example they gave was growing hogs to offset the low price of milk :banghead: dumba$$es, so a farmer who can already barely afford to feed the cows that are his lively hood would now have to buy feed for the hogs, probably have to build another barn to house them. On top of all of this it is obvious that they have not seen how much the actual hog farmer gets paid compared to how much it cost his wife to buy a package of pork chops at the grocery store. Granted hogs will eat almost anything you throw at them, but like everything else, there is a right way and a wrong way to do things.
Now on the other side of things, there is more and more land that is just becoming overgrown from lack of maintenance. Years ago if you were sitting on a couple hundred acres you could have a bidding war from farmers wanting to use that land. Now there is far more land than farmers. In a bitter sweet twist it opens the door for anyone with a tractor and brush hog to make some money, I already have a couple of pretty decent size fields lined up for later this year, they are big enough though that my FIL and I will tackle them together with two cutters.

Moral of the story, go buy a pig and all of your worries will go away. :munch:
The easiest thing in the world is to be a farmer, until you actually try it.

Treefarmer
 

·
Registered
Joined
·
2,514 Posts
I have a few friends and relatives that farm. They all claim their not making any money and often operate at a loss. But, they seem to have the nicest houses in the neighborhood, drive late model pickups. Their wives drive newer top of the line SUVs. The farm kids have all the latest toys snowmobiles , atvs etc.
 

·
Registered
Joined
·
12,545 Posts
I have a few friends and relatives that farm. They all claim their not making any money and often operate at a loss. But, they seem to have the nicest houses in the neighborhood, drive late model pickups. Their wives drive newer top of the line SUVs. The farm kids have all the latest toys snowmobiles , atvs etc.
Lots of people have all the finest things in life and don't work one day of the week. A family who works 7 days a week and is "on call" for problems that arise should deserve some of the finer things in life too, wouldn't you agree. Show me a contractor that doesn't have more than most, or any self employed person, real easy to write most things off as business. Don't just be hard on farmers.

Anyway, I'd tread lightly



just sayin'
 

·
Senior GTT Super Slacker
Joined
·
36,093 Posts
I have a few friends and relatives that farm. They all claim their not making any money and often operate at a loss. But, they seem to have the nicest houses in the neighborhood, drive late model pickups. Their wives drive newer top of the line SUVs. The farm kids have all the latest toys snowmobiles , atvs etc.
That right there has always amazed me. :dunno:
Some don't give debt a single thought, others do. Big cash flow does not necessarily indicate wealth.
 

·
Premium Member
Joined
·
7,940 Posts
Funny that so many professions that "don't make any money" still have so many people doing them.

I think most just like to complain.

However; if you admitted to "making good money", then you would be labeled as "rich" and someone else would want your money.

There should be an Emmy Award for best acting - Crying Poor while driving a $75,000 Truck. :lol:
 

·
Registered
Joined
·
12,545 Posts
Funny that so many professions that "don't make any money" still have so many people doing them.

I think most just like to complain.

However; if you admitted to "making good money", then you would be labeled as "rich" and someone else would want your money.

There should be an Emmy Award for best acting - Crying Poor while driving a $75,000 Truck. :lol:
This is what I tell people:

We don't have any money, but we have a lot to show for the money that we make.
 

·
Registered
Joined
·
144 Posts
2018 was good, and 2019 seems to be strong as far as manufacturing is concerned. Our small company (machine shop) is barely profitable for the first time in several years. I attribute that to our willingness to diversify our capabilities, our customer base, and heavily investing in the latest technology.

I don’t want to be political, but the current administration has energized the manufacturing base.

I am not rich with cash, but in assets that help me and my employees stay employed. All of which could be gone in a flash.

Enough business talk, I need to pack and get ready for the National Farm Show. See you all in Kentucky. ;)
 
1 - 20 of 32 Posts
Top