Tractor Sales Are Plummeting In Every Size - Find Out Why Here!

In this video, we attempt to unravel the causes behind the plummeting sales of tractors and combines across all sizes in the United States during the first quarter of 2024. Backed by the latest data released by the Association of Equipment Manufacturers, we explore the significant decline in sales figures compared to the previous year.
Tractor sales across various horsepower categories tell a compelling story of downturn. From a substantial 17% drop in units for tractors under 40 horsepower, to an 8% decline in the 40-100 horsepower segment, and a 4.2% dip for tractors over 100 horsepower, the trend is unmistakable. Even the large articulated tractors experienced a notable 7.9% decrease. Combine sales didn't fare any better, witnessing a significant nosedive of 20.4%.
But what lies beneath this stark decline? While multiple factors come into play, inflation emerges as a central protagonist. The tumultuous period of the COVID-19 pandemic saw the prices of small tractors skyrocket as manufacturers struggled to meet unprecedented demand. The exodus from urban centers, coupled with increased savings due to quarantine measures, led to an unprecedented surge in tractor sales. Conversely, larger tractors saw a surge in demand post the Russian invasion of Ukraine, fueled by a sharp rise in grain prices. This surge in demand, for both new and used equipment, drove prices skyward as manufacturers competed for limited resources. Adding to the complexity, increases in interest rates have now further dampened demand, creating a challenging environment for potential buyers.
But is now still a good time to invest in tractors despite rising prices? Manufacturers are under increasing pressure to discount products to keep factories operational. However, higher input costs of labor and materials prevent a return to pre-COVID levels. Some manufacturers have resorted to laying off workers and slowing production to control the flow of machines from factories. Yet, amidst these challenges, there's hope for prospective buyers. Dealers are motivated to negotiate better prices, and discounted interest rate programs are being rolled out to incentivize purchases. It's certainly a more opportune time to buy than two years ago when supplies were at record lows and demand was at an all-time high.
This KZbin video provides a comprehensive exploration of the intricate web of factors contributing to the decline in U.S. tractor sales. From the initial surge during the pandemic to the subsequent challenges posed by inflation and geopolitical events, we dissect the trends shaping the agricultural machinery industry. Whether you're a hobby farmer seeking insights into market dynamics, a farmer who relies on equipment for his livelihood, or an industry enthusiast curious about the forces at play, this video offers valuable analysis and perspective. Join us as we navigate through these turbulent times and shed light on potential strategies to navigate the downturn in tractor sales. Don't miss out on this opportunity to stay informed and empowered in an ever-evolving industry landscape. Watch now and gain valuable insights into the decline of U.S. tractor sales in the first quarter of 2024.
00:00 Introduction
00:54 Under 40 Horsepower
03:17 40-100 Horsepower
06:02 Over 100 Horsepower
08:10 Articulated Tractors & Combines
09:34 Good Time to Buy?
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[@racekar80]

Exactly like the car market. Short supply during covid increased priced because of low inventory. Inventory caught up but consumers don’t want to pay the new high prices so they rather keep there vehicle and fix it. Manufactures need to lower their prices back to pre covid levels or they will be forced to sit on this inventory. Car market is worse because manufactures produced $80-100k vehicles that people can’t afford, basic pickups are 50k, crazy prices, thanks Joe, doing a great job with the economy.

[@killacommieformommie]

I'm not a row cropper just run cows, goats, pigs and a pastured egg operation none of my tractors where made after 1975. Cut about a hundred acres of hay a year probably still be using those same tractors in another 20-30 years as long as I'm able. People you don't need a nice shiny tractor with a big arse price tag, coupled with a lot of debt to farm. Learn how to fix things and then maintain them and those old machines will last you for a long time.

[@very5ick112]

old guys need to grow there own seed, not conagra, monsanto. et cetera

[@rp1645]

YES my 1978 Dynahoe-190 backhoe runs fine. Before me it had a very hard life, like you said. I learned about a cylinder seal replacement. Always keeping a clean OIL in her. Filter change, even if you don't use the hours. YES I do farm with my rubber tires big bulky 19000 pound baby.

[@sailingaeolus]

I've got a 1998 Saturn SL that still purrs like a kitten. Amazing how long a machine will last with good maintenance.

[@jayrobert5917]

And Avoid all the electronics and horse shit emissions,

[@billfarmer7984]

Love your user name.

[@alanshaw4655]

don't need to watch this video to know why sales are plummenting ?..it's because no one can afford the damn things !.

[@johndenver8574]

Inflation is the key issue. If government spends more then it has you have to get the money from somewhere. Right now we're just printing money which lowers the dollars value.

[@sprint2648]

@@johndenver8574bingo!

[@wildbill23c]

Same could be said about new cars yet people are out their blowing their money on brand new vehicles on a daily basis....I couldn't imagine having a $1200-2000 a month truck payment, or a $500-1000 a month car payment. Prices are ridiculous....my tractor payment is $267.00 a month, but I pay extra to get it paid off sooner, about a year left, hopefully less if things keep going well. Otherwise a year at most and it'll be paid off...and that's a 5 year 0% loan, that is already 3/4 paid off in 2-1/2 years.

[@alanshaw4655]

@@wildbill23c i still drive my '00 silverado, trucks today, some are at 100k otd !. i got a very old kubota i bought used, fixed it, and use it alot..and both are paid for !..lol

[@wildbill23c]

@@alanshaw4655 LOL, yep, my vehicles are long paid off, tractor is almost paid off about a year left at the most. 189k on my HD truck, and 131k on my Ranger. Newer isn't always better, especially the idiots that bought new vehicles during the chip shortage that paid full price and got a 1/2 ass working vehicle where a lot of the electronic gadgets don't work because the chips aren't there to run them LOL>

[@knockschool]

Modern tractors have far to much electronics, fancy gearboxes and fly by wire push button controls. Servicing and repair bills are huge. Older simple tractors are serviced by the owners cheaply and just keep going. ?

[@pmaint1]

Until they don't make parts for them anymore and that's already a problem with a lot of manufacturers.

[@200130769]

​@pmaint1 like what manufacturers exactly? We can still get parts for our older and newer tractors.

[@user-wc8lu7qd2m]

If people would bother to learn electrical diagnosis; modern vehicles are easier to work on than anything before. The only thing to complain about is emissions junk. That is 90% of all your failures and bills on modern stuff that you can’t easily fix. If you don’t know how to diagnose a switch, use a multimeter or understand how DC electricity works; you need to evolve.

[@therooster6104]

We rebuilt a 1954 Farmall Super M MTA put a wide front end on it , with an old combine rear turning axel , added a loader and 3 point hitch. The benefits we can work on it 😉 Does everything we need to run our cattle operation no debt is great 👍 we don’t have air but added a roof , we can take it we aren’t soft❗️

[@frederickbooth7970]

We did the same with our 1952 8N`s. Strong arm steering that this 68 year old can still handle even with a full loader. Helps us keep fit enough for handling our very strong & fast Thoroughbreds.

[@therooster6104]

@@frederickbooth7970 Very cool nice to see that there are others out there who understand we don’t have to have all the bells and whistles God bless you and your’s 🙏🏼🕊️

[@Leslie-es5ij]

People aren't farming like they were in the 4o s, 50 s, 60 s, and 70 s. In the 80 s the small dairy farmers got ran out of business, and it's been a downward trend ever since.

[@frederickbooth7970]

We have seen that sadly in Tillamook county m Or. where my nephews live. Despite there being a dairy coop. Most of the small dairies are now gone.

[@ponga782]

@frederickbooth7970 you are right my friend.. the Corps are killing America! Would be good if small town business would just support one another and absolutely not allow any chain stores into their towns.. I know it's not so simple, but it can be done.God bless and good luck from Texas!

[@porkyfedwell]

If you produce a pure commodity like milk, cost is everything. You can't be small and win the efficiency game. Some small dairies have survived by differentiating their product from the large dairy milk via attributes such as non-homogenized, organic, etc.

[@Leslie-es5ij]

@porkyfedwell very few, and the government is making raw milk illegal to sell, that's what happened in the 80s, forced farmers to go to grade a milk, and not buy if the didn't, then they had a buy out program to get rid of more small farms. The ones that survived couldn't sell milk directly to the public, and had to go big or get out.

[@andrewdonohue1853]

@@porkyfedwell you cannot legally sell unpasteurized raw milk. i haul milk for a living (truck driver) and i will tell you that organic is a crap deal for the consumer. the big difference is the an organic farm cannot properly treat their cows when they are sick. a conventional farm simply needs to remove the cow that is receiving antibiotics from the milking going into the tank. NO milk sold at retail is permitted to have antibiotics. the organic farms have lower overall standards and are actually pretty dirty farms (some of them)

[@oldretireddude]

Dealers need to start bringing in old used tractors, that people want, non DEF, and recondition them, and sell them.

[@kdegraa]

Or lobby government to get rid of anti pollution crap on farm tractors.

[@MikeOrazzi]

True. I happy to have old tractors that are pre DEF.

[@BillTheTractorMan]

I run 5 tractors all pre- 1970 for my needs. The technology and electronics is too expensive to maintain. Especially when you have to have the dealership service everything because the average man can't access the technology to do the diagnostics and repairs.

[@MikeOrazzi]

@@BillTheTractorMan True. Mine aren't that old, early 2000s.

[@wizard_of_poz4413]

Do yall realize nothing under 75hp has def. And def doesn't even cause hardly any issues

[@alfredfleming3289]

The fact that the price for a new tractor has doubled in less than ten years wouldn’t have anything to do with it?? Or the truth that all the modern electronics make them unreliable and unrepairable without special computers and trained technicians. Give me my old Magnum’s any day.

[@very5ick112]

noo not prices nooooo ha ha ha

[@huntncover]

That's the goal - shiny new Hi - tech wonders are fun to ride at first , until you find out what they're really all about . The cost to ride is too high . Surprised that they didn't rename some of them the " Jezebel " model .

[@Noah_E]

They're too dang expensive. For goodness' sake, an open station 1025R is $23,918 with nothing but an under-built standard bucket. You can easily price one up to $30k with a third function, wheel spacer, etc. That's absurd for essentially a glorified lawn mower only capable of operating 48-60" attachments.

[@stewartwaters1778]

The money to buy has run out. High interest rates, High food prices, wages are not going up.

[@danwilkening888]

Try lookin at a different color. You could save $15-$20k. I've started doing a tone of research to purchase at the end of the year and cant see the value in the green paint for me.

[@javiertorres7460]

You can analyze all you want. The real reason is the price of these tractors are ridiculous. Green and orange are out of control. Not to mention all the environmental crap

[@Jtwizzle]

Yup, that is exactly what I got quoted. 23k out the door for a 1025r with loader and bucket. Used is the way to go. Seen a 1025r with loader and low hours for ~15k. Steering away from JD at this point, though. There is much better value with some other brands right now.

[@Jb-uy5zx]

Exactly. I just saw a video of a guy who bought a 1025 with a backhoe and loader said he spent 32 grand with payments like 600 a month! I thought that was insane. So glad I bought my 1023 a couple years ago, paid like 11 grand with no loader. Than I just bought the non quick attach loader and it was like 1200 bucks after I traded in a crappy old ford tractor I had bought.

[@blessed7fold]

I have been following this industry for several years now, and my takeaway is that this whole industry is broken. There often times isn't enough competition nearby to keep prices in check and standards up so the consumer gets shaken down and underserved.

[@shawnbottom4769]

You can lump automobiles and groceries into the same pile.

[@huntncover]

As the easy money is taken away via bank failures ( No entities to lend ) the chickens will come home to roost in this overpriced , overinflated , overvalued Ponzi scheme . Margin calls will translate into foreclosures , confiscated lands and equipment , and the destruction of the whole system . Debt is a terrible thing . God spoke about debt and money while He walked this earth . People should have listened to Him . Owe no one anything , except to Love one another . The devil says , " Borrow , borrow , borrow , there's more where that came from . " Thin air . That's where it's returning to .

[@MoreBoogersPlz]

If commentors really want these prices to correct, you honestly just don't need to buy for a long time. Companies have many levers to pull and the last thing they want to do is lower prices. They'll offer incentives, favorable financing terms (advertised as limited time offers), and layoffs before cutting prices. They are beholden to investors and margins matter more than any job. Make them lower prices and take our economy back. Remember, just because its affordable doesn't mean its worth buying. This is true for every sector.

[@SixOFord]

Capitalism at work. It's only worth what someone is willing to pay.

[@very5ick112]

prices are stable, up up and away

[@kdegraa]

In May 2021, when Australians were subject to harsh COVID lockdowns, the place was a prison. I was on a mission to buy a new tractor. After around a month I found one. It was my lucky day. Three years later it has been paid off. No more $1000 a month payment.

[@bubbaramsey9777]

I bought a new 110 hp tractor in 2020 for 72000$ and now the same tractor is $123000. Greed is running wild. Not buying any new equipment in the near future until these prices come back to normal.

[@woodsghost9088]

I think you misspelled "inflation." Have you seen the number of dollars cranked out? Compared to the number of goods being produced? Have you looked at your grocery bill from 2020? Compared to now?

[@pleasanthill924]

The dollar is loosing value…

[@dennisdennis5921]

​@@pleasanthill924 not only the dollar...

[@johnoconnell3842]

Same in Europe. 120hp tractors costing €70,000 now double. Has the price of milk doubled? No only the input costs

[@huntncover]

Welcome to the NWO . You will own nothing , and be happy - Forget about the " happy " part . Chaos will ensue .

[@robhartshorn6823]

I dont think its so much the tractor prices are too high but that consumers in the income level that buy tractors are paying half their income to taxes. Then you have high inflation, high fuel prices, high cost for insurance, high interest rates, and you say to yourself It would be nice to have the new tractor but I can live with what I have right now or buy an older used tractor. High interest rates are also doing exactly what they were supposed to do and that's slow down the economy. The economy slows and business owners have less money to invest so you have less income coming in, higher cost of business, higher taxes and higher interest rates. I have put off purchasing all kinds of things I was planning on purchasing this year and I'm not the only one.

[@josephgalicia7142]

I bought a off brand because Kubota and john Deere not in stock and 10,000 more for same 40 horse.totally impressed by the off brand

[@TheTruthSeeker756]

Off brand meaning SANY?

[@200130769]

What one you get?

[@corydebuhr4344]

In 1980 a hundred hp tractor was just over 20,000. Now 125,000 won't buy much. I'm glad I'm here older and about 8-10 years I'll be retired. Can't imagine a younger guy wanting to farm anymore. Everything has gotten so dam big. We are going to pay for in the future.

[@huntncover]

The future is here

[@Ggggaia-vi5xj]

Been wanting to start an hay operation but land and equipment costs are through the roof too expensive to consider it

[@Rdrake1413]

My cousin is a 3rd generation dairy farmer. Neither his grandfather, his dad, or him have ever bought new equipment. Everything on the farm is used. His tractors are all '70 to '80 model tractors. Used equipment around here is everywhere. It's much cheaper to buy used, and you don't have the added cost of DEF. The way the economy is now, there is no way I would go into debt to buy new equipment.

[@jimmyyounger618]

I wish I'd bought my new 60hp tractor the first time I thought about it, before the inflationary price movement. I'd made up my mind years earlier that I was going to get a tractor with a cab so I'd quit cooking in summer heat, but I procrastinated. I really regretted not having a cab last summer when I backed a brush hog over a yellow jacket nest. (Pro tip: In an open tractor, keep 'er rollin' when you're nearly a hundred yards away; they're still not done with you!) On the upside, I'm really enjoying the new tractor and I don't see them getting cheaper. Some incentives are already kicking in and Kubota's zero percent financing was a better deal than a 1K rebate.

[@frederickbooth7970]

Bumble bees are just as bad! Had 1 chase me for 1/4 mile! Was trying to do field spot spraying. Had to escape by going into the farmhouse. Was just barely able to outrun the blasted thing!

[@jimmyyounger618]

@@frederickbooth7970 You're not kidding! I was under the impression bumble bees were comparatively non-aggressive until I was weed eating around our back deck. Perhaps they can follow our scent trails? And after 4 stings they were bouncing off the sliding glass door after I'd already made it inside while I was still battling one that flew in or rode in on me. Bumble bee stings might also be the most persistently painful of all stings because I recall those stings like no others.

[@frederickbooth7970]

@@jimmyyounger618 I think bumble bees are just as bad as yellow jackets/ hornets!

[@steventhury8366]

​@@jimmyyounger618Never had bumblebees attack me, but they can be intimidating little things. The paper wasps are mean and have a nasty sting.

[@jimmyyounger618]

@@steventhury8366 True! I have 2 locations I can count on them building their paper honeycombs, and it only took me several incidents to be mindful of their probable presence. The main breaker panel on the pole and a four-gang outlet box by a gate for a tank heater and fence charger. If I need to open either of those during the summer, it's the one time I'll go out in the heat dressed for a snowmobile ride and armed with wasp spray. 😄

[@doolittlegeorge]

Farmers are smart...always keep a Ford 9N around "for old times sake" back when a Farm Tractor new was $500.00 US Dollars. US Auto sales are still off to a strong start but the mix is clearly changing as well with Honda Civics, Toyota Corrollas, Ford Mavericks all the rage now. So much is being forced upon people to use credit to buy anything clearly this is an economy that should be the best ever but instead is the worst ever 😕😕😕😕😕😕 with layoffs, riots, War, looting, taxes, inflation, terrible wealth inequality being rubbed in peoples faces all the time, "bailouts", Treasury buybacks...at some point just like the early 1980s this bill comes due and that time might be happening right now, absolutely.

[@davehughesfarm7983]

hear hear

[@marlboroman71818]

If manufactures and dealers keep holding onto that 4-7% profit margin there wont be any customers to buy in this current economy

[@johnhelbig7110]

Hah! I was a Ford New Holland and Kubota dealer for 33+ years and we were very happy to achieve to achieve a 5% margin on new tractors. The last I was a dealer 4 years ago, Kubota dealers got a 20% discount from retail to calculate dealer cost on their invoice. Then inbound freight was added and the dealer still had to assemble the B & L series tractors. Plus we always threw in fluid in the rear tires and free delivery. During the winter months, we lost $1000 a day to unlock the doors to do a little business. This happened every year for about 4 months until April came.

[@lawrencemartin24]

Retired dealer here... Never ceases to amaze me at how ignorant some people are. 70% margin are you kidding???

[@marlboroman71818]

@@lawrencemartin24 What I meant to put is 4-7%. It is corrected now

[@marlboroman71818]

@@johnhelbig7110 What I meant to put is 4-7%. It is corrected now

[@marlboroman71818]

@@lawrencemartin24 With that said dealers make up plenty of profit with implement sales, extended warranty sales and parts and service.

[@osuoiler3605]

Good video, Mike! I appreciate you and Kenny taking the time to provide input. I haven't been in the market for a tractor since 2020, but it's good to hear what is going on. With the skyrocketing prices the last few years, I know it's hard for a dealer now, but as a consumer, I have to appreciate the market softening. Let's hope it gets back to a nice balance where both dealer and consumer can walk away feeling okay about a deal!

[@Texascudaguy]

Kubota and John Deere economy sixe tractors are all low quality stock. Overpriced and then need multiple ‘upgrades’ to use as a tractor.. still get more use out of my 70 year old $900 Moline than i do from $30k Kubota

[@wildbill23c]

Good for you, buy that old tractor, don't buy a new one...all the new ones are total garbage don't matter what color you buy. Lots of old tractors out there farming all the time in my area. You know which farmers have too much money and not enough brains when you see them out working in a brand new $100k+ tractor, and a different one every season.

[@AStanton1966]

You are correct, sir. I bought a new cabbed Kubota B3030 some years back. The tractor didn't come with a 12-volt accessory port and the wheels were so close to the frame that I couldn't run chains. I had to buy 1.5" OEM spacers!

[@patrickcorbett8361]

Thanks Mike....I like to see these reports ,and I'm glad you post them ! pc

[@jambo_jackbelly]

I would say a big factor in the deal with the 30 and under horsepower tractors is the fact that you can buy food much cheaper than you can to grow it because of the price of tractors and it doesn’t make a lot of sense you don’t need a $20,000 tractor to mow your grass I mean that’s not a necessity You know you might plow your driveway six times do you really need to spend $5000 to plow your driveway a year do you need to spend $5000 to put out a garden a year? No, you can take that $5000 that you would make on a tractor payment and buy all the groceries you want so it doesn’t make economic sensefor the medium property owner small medium property owner to buy a tractor a new one anyway And then when it comes to excavation, and those type of of jobs will one you can’t really do a whole lot of excavation with a 30 hp tractor but the other thing is just rent a weekly do a weekly rental of an excavator and you’ll get it far cheaper than making a payment for for 84 months and also you’ll get a better job done so really if you’re smart you’ll just rent and maybe pay someone to plow your driveway and save thousands of dollars a year rather than just you know take the big plunge and buy a $20,00025 hp tractor

[@chrisreibold1634]

I priced a 1025r TLB a couple weeks ago. It was $29,500 after tax. Cash price was $1,500 less. A 2025r TLB was $33,400 after tax with cash price being $2,000 less. Needless to say I don't have a tractor yet. Last October I believe prices were 3-4k lower. Pittsburgh Pa area.

[@peteverrelli5797]

To darn expensive. Five years ago I bought a brand new Massy Ferguson GC1705 with front loader with QA, 60” belly mower and a canopy for $14,000 OTD. I don’t think you can touch one now for less than $20k

[@kirkhiggins3044]

It's about timing and deals. Just took advantage of Kubota Orange Days to get BX2380, loader, brush hog , tiller, box blade, and trailer at $0 down and. 0% for 84 months package deal. Hard to beat 0%

[@livewire2474]

Still in all you've got 30k into a 23 hp machine. Yes they are offering 0% and that's nice but for God sakes prices are rediculous!! I know because I took delivery of my new bx2680 2 weeks ago and it hurt me to sign papers on a 26k machine that's worth about 18. But I did it because I need a tractor 🤷🤷 terrible economic times we are in I pray for a change. Good luck with you're bx2380😉

[@jefferyedwards5003]

Lucky you...make the minimum payment and it will be yours in 2031!

[@livewire2474]

@@jefferyedwards5003 Right 😂😂😂 is what it is 🤷🤷

[@kirkhiggins3044]

I get that things are more expensive but that trend is never going the other way. It's either buy now or pay even more down the road. Or you can try to maintain older equipment. I'm not a mechanic so I choose 0% and a warranty. Everyone has to make their own choices.

[@chipmunk94]

Buy used. In 2021 I bought a 2017 Mahindra 1526 for $16500 with 123hrs. Tractor is built like a tank. Better everything than a JD or Kubota offered. Used 6ft brush hog, used 7ft disk and used pallet forks. Get off the new kick people. Be patient, buy used and pay cash.

[@douglassellers7528]

Great video. Let's hope interest doesn't go up to 1981 levels. If it does you will see some prices come way down. Those old tractors will do a lot of work. Just might not be as comfortable.

[@wildbill23c]

Rather hose old tractors don't look cool enough as a show off status symbol...just like everyone buying new cars....their old one was fine just gotta show off to their so called friends.

[@MrMarkaci]

Great info guys. Thanks for doing this.

[@jor4288]

Thank you, gentlemen. Very informative.

[@Flowing23]

Excellent excellent excellent information, thank you for doing this.

[@andrewgee241]

I think JD and Kubota are on the verge of raising prices to the point that buyers decide their reputation and dealer network just isn't worth the higher price. All the compact tractor brands sold in the USA are good so it gets hard to justify paying $10k more. The Korean built tractors are significantly lower in price which will lead to concerns about Korean brands disappearing fast

[@W1ldt1m]

“On the verge”? They hit that years ago. There’s a great LS dealer near me and he’s outselling both.

[@randysavage8963]

Great information thanks Mike

[@johndenver8574]

I was actually thinking on starting a used tractor dealership. Selling small to large used tractors, and zero turns. Used tractor prices are definitely down by alot in recent years.

[@mikeross2577]

S&H is my favorite dealer. Great service and parts.

[@johnhelbig7110]

These sales numbers are broken down to the sales within each county, and the county information is used by the manufacturers to grade the individual dealer on his sales of their brand versus all other brands reported sold in the same area. This was known as the dealer’s market share and some manufacturers tied our dealer incentives to the local market share we were able to achieve. Due to todays higher prices, a lot of purchasers seem to be turning to the second and third tier of tractor manufacturers and I’ve always wondered whether these other manufacturers even reported their sales. Mike, maybe your industry contacts could verify if all the current tractor marketers ( TYM, Bad Boy, RK, Bobcat plus the Indian tractors) are reporting their sales. Perhaps the size of the market is being under-reported.

[@cabwaldo]

Our TYM dealer has exploded with growth so much that people have to park on the side of the road just to go and look/make a deal. Granted, their lot is very small.

[@MonroeTractorGuy.16]

This data is from the reported sales from OEMs and from EDA data of units sold under contract, which get reported to county court house for recourse loans. I remeber learning that there were some other points of data, but nearly all of the sold units are counted.

[@mauser8515]

I love my 47hp 1967 Ford 3000. Ive got an old Brush hog, old box blade, old disks, old cultivator all for under $6000. Itll last me forever.

[@ban80]

The prices have skyrocketed, so sales went down. It's pretty simple . Inflation is outrunning what people earn.

[@dave-uf8ir]

Excellent mike cheers 🥂 😊

[@user-jx3sf9vc1x]

4:08 I went to the Kubota dealer, cash in hand. They only had the BX’s with Backhoes. I want to use a tiller so asked for the 25hp model. That added $7000. Needless to say I’m looking elsewhere. $37,000 for a toy tractor.

[@AZFarmFun-hp1cu]

Cash in hand doesn’t make a difference. I paid cash, and I paid the same exact amount as if I had financed. The only difference is I don’t have to buy insurance.

[@frederickbooth7970]

Those BX`s are indeed toys! My nephew had one that he used in his landscaping business. The 1st time he went to do some serious brush cutting & ground clearing the PTO went out. My old 8N`s have just as much HP & have cleared small trees using its loader which is a metric size since it was a loader made in Canada.

[@Johnthelittlebuilder]

Must be the dealer just got a new bx2680 with loader, third function, pallet forks, tiller, grapple, snow pusher and blower for $30k and that’s Canadian

[@coaltrain18000]

I have a TYM 494…50hp with cab, AC/heat, radio, 3rd function, no def with a motor made by Cummins for $32,000 otd delivered to my door. Same tractor with green or orange paint is 50k plus. I have over 350hrs with zero issues.

[@donaldbronikowski2859]

I got lucky and got a deal on a New Holland tl 90 cab tractor, which is 90 HP. Has loader also. Now looking for a round baler. If anyone knows of one reasonably priced in South central Texas area I would appreciate any leads. Also does anyone know where the hydraulic screen filter is located on a tl90 ?

[@stewartwaters1778]

New Holland is losing dealers on Georgia. Four dealers left.

[@haroldgilbert6707]

?

[@CumminsCat]

John Deere runs strong in South Ga.

[@stevemeister65]

The business side of this is pretty interesting. I am curious if commodity prices have any bearing on tractor demand or not. For example, for the pure ag buyer (larger tractors), are sales and inventories sensitive to corn and bean prices (as an example)?

[@wademills1616]

They are dropping because of price and honestly they are junk. Unreliable pieces of manure. Plus interest rates are killing us small businesses. I was in the market for a compact tractor. And the models I was considering went through the roof. They cost as much now or more than when they were new.

[@MidwestFarmToys]

I think enough people here have already said what I was going to say. F these prices. 500 grand is more than I will gross in 20 years how the flip am I going to buy a single tractor. Farming is a game for multi millionaires now

[@KapperOutdoors2.0]

Yep, everything is expensive! Hopefully we'll at least level off without a negative crash. Thanks, happy Friday!

[@KPVFarmer]

Price is increasing disproportionately to any increase in income for family farms. The cost of ANY new equipment is making purchasing unreasonable when looking at a farm’s budget. Most farms need off farm jobs to sustain them. That’s not a sustainable business model. Lots of traditional family farms are being squeezed out.

[@clarkansas6590]

Good job

[@johnireland6301]

Here in Illinois corn and soybean prices are much lower, fuel is much higher and interest rates are higher as well. I am surprised sales of larger tractors are selling as well as they are.

[@tommybounds3220]

Thank you for the video.

[@DAVIDZ-vk4yv]

i also have many many neighbors who are NOT upgrading and the reason i hear from all of them is WHY buy new when our prices we receive do NOT justify it

[@user-wc8lu7qd2m]

Is it because no one has any money anymore? Is it because the government was buy 60hp fully loaded JD to mow a strip of grass and now have 500 tractors per county but only 2 employees?

[@captainsnack59]

Please straighten the picture in the background. It is activating my OCD. Great video by the way!

[@LostCaper]

Jan I bought a kubota L2502 which is a 25 hp for $40,000. No cab.

[@dennisdennis5921]

Same in the e.u.. if the farmers don't make enough , they can not buy. And then the rise in prices since covid is abnormal, while our products are still priced like 15 years ago.

[@hugh261]

When consumers reward the greed of sellers they wind up with more debt than they can pay.

[@DewJohnson1]

parts for my Mahindra 3016 that is 11 yrs old have gone out of sight, I scramble to find cheap parts online, my dealer is out of the question, prices marked up very high. Probably wont buy another new tractor just for this reason, I am all about under 40 hp. Small sawmill, farm ops.

[@Wade-ub4cj]

What about ….not being able to fix your own tractor laws. Does this have an effect on sales?

[@winkdinkerson7190]

Not unlike the automotive industry, Ag manufacturers saw an opportunity to gauge the consumer through the Covid debacle by limiting supply during hot demand, that provided them an opportunity to increase tractor pricing 5 plus percent Y-O-Y in 21,22, and 23. This coupled with excessive Government spending, rising costs of money due to inflation have collectively created the situation we’re in 2024. Solid supply, softening demand, completely outrageous product pricing, high single digit inflation, increased loan usury costs that has lead to slow dealer proxy sales. The Ag industry like automotive industry needs to be speed bagged in the balls by the market, by not buying their overpriced shit. We’ll see if pricing doesn’t plummet over time.

[@richardbritton5280]

ty interesting

[@garyhoward3123]

Long live Allis Chalmers.

[@Fljeff7]

As interest goes up so do the payments or the term gets longer. As the economy falls so will all sales

[@markgrehlinger7117]

MIKE, please help me understand why new compact tractors are climbing in price, while the same compact high quality tractors in used are dropping. When new go up in price, why don't the used automatically follow? Typically these used compact tractors are in very good shape, with low hours. In fact I don't know why anyone would buy a new one when they could buy a high-quality used for 35 - 40 percent less. Example: I struggled to sell a 1025R used & immaculate for$16000,with several implements. To duplicate that in a 2024 you would probably be at $25,000, in my humble opinion smart money buys quality used over new all day long. Your thoughts?

[@jimmyyounger618]

For one, you can't get zero percent financing on a used tractor. I was leaning toward used for the savings, but when I worked the numbers it wasn't more for new, plus the warranty and a tractor tailored to what I wanted vs. what was available. Even if you have the capitol to do an all cash deal, you're still taking that money away from it's earning ability. It made sense for me to take the zero percent financing and leave my money in investment allocations. If rates hold at the current 5% for the most conservative allocations with a compounding return year over year during the term of the loan, (7 years in my case), new makes sense.

[@terryelson5396]

It's not really 0% interest. There is a cash price and a finance price. Typically $3-$5k more. That is the consumer buying down the loan to 0% to make you feel like you got a deal.

[@andrewgee241]

The prices for used tractors follow true market supply and demand. The new market is manipulated by things like the availability of financing, insurance, manufacturer incentives, and dealer exclusivity in an area. The guest in the video said at the end that new prices should be coming down but JD and Kubota just refuse to lower prices.

[@wildbill23c]

I bought a new tractor because I didn't want to buy someone else's problems that they created by skipping maintenance, or abusing the equipment. I know exactly what has been done with my tractor since day 1...can't say that for any used tractor no matter how shiny it is....just like used cars, most times they're traded in because somebody either got tired of fixing it, or it was wrecked/totaled, or they are the type of people who think they need a new car every year so they can show off to their so called friends. I don't care to buy someone else's problem tractor, equipment, or vehicle.

[@jimmyyounger618]

@@terryelson5396 When the price across dealerships is nearly the same whether paid in cash or financed, but a 0% buyer incentive pops up to adjust for market conditions, is that not a real discount? It's a substantial discount when Kubota is only offering a $1,000 rebate in lieu of 0% financing. You can reasonably assert the consumer has paid down the rate in the purchase price, but I challenge buyers to enter a dealership whether it's tractors, trucks or cars and discover a substantial price difference for cash vs. financing. A family member who owned a car dealership talked about buyers being focused on negotiating the price, but paying almost no attention to loan rates. Buyers typically focus on the dollar amount of their monthly payment. They could easily close sales with shoppers by quoting the lowest sticker price, but the dealer banked up to 2.5% of the loan rate. Part of that game of handing the buyer off to the manager for approval of a negotiated price includes inquiry into payment method and navigating finance. As the manager, this family member would dismiss negotiated offers if they were not financing, which in terms of dealer profit might be equal to their product markup. Paying cash wasn't favorable to a dealership whose business model includes selling financing, and did not improve the buyer's position during price negotiation. The math when investing the retained 40K over 7 years vs. financing is eye opening despite our weird inverse rate to term issue where shorter term CDs are paying more than longer term deposits because of uncertainty about the Feds future moves. Since there's no 7 year CD term, we can assume the lowest rate for 10 years with the option to close the position and assume a penalty. (Personally, I'd do a longer term ladder across multiple term CDs up to the 10 yr. CD.) At 4.4%, that retained 40K earns 1,760/yr. X 7 yrs. for a total of $12,320. Even if there was a 3-5K discount for a cash purchase, it would be foolish to skip the 0% interest offer. Even at 4.4%, conservatively investing that 40K over the term of the tractor loan is equal to a 30.8% discount on the price of the tractor. Does this 30.8% discount by investing instead of paying cash make me feel like I got a better deal than any possible discount for paying cash? Yep!

[@joeydebity5823]

Can't afford to buy one. The prices have got so high. Even with some companies offering good rates, they are still unaffordable for small farms.

[@ellobo1326]

Corporate greed. Overpriced, poorly built machines. The emissions crap is insult to injury. Same with pickup trucks. The consumer gets spanked !

[@redrustyhill2]

Correcti: NEW tractor sales are plummeting. Used tractor sales on pre-def machines is through the roof.

[@chuckm482]

Under 40HP Segment: 2019, 2020 is equaling out each other. 2021 (covid) brought fantastic sales and inventory reductions. Everybody wanted to do something around the house and land ... makes sense right? Sales took advantage of this and increased pricing along with increased expenses because everybody up the line from manufacturing to parts suppliers whether USA, China, or wherever had price increases including hitting us all hard with supply and demand (demand more) pricing. Now the Dealers panic and keep pressing the order key. 2022 sales are still pretty darn high. Than the backorders keep adding up, Dealers don't care about inventory management and , again, panic and keep pressing those non-reversable order keys. Now sales go back to about normal with owners of new tractors being satisfied from the previous few years. 2023 is still growth when compared to the norm of 2019/2020. Now we look at 2024 comparing it to 2020 and see we are in as good a position. 40HP to 100HP: Read above = ditto! Dealers have plenty of inventory, A TYM Dealer near me is building a huge parts distribution warehouse. This TYM Dealer is not panicing, they are adapting recognizing the next phaze is to satisfy the fantastic parts sales growth coming up. I don't get the sort of panic and negative mode. CM

[@jonathanjohnson9542]

Tractor prices increase 20 to 30 percent but quality of those units is not going up that fast. Paying more for shitty emmisions systems that no one wants and are a nightmare for the tractor itself.

[@turdferguson12]

Too dang expensive. I just bought an MX5400 and it cost me north of $50k. Ridiculous!

[@TXsnowman812]

Low hr magnums still bring a premium

[@markdavidson7510]

can you comment: looking at the graphs it looks like the small and midsize equipment is basically pre covid levels for sales and inventory? (that what it appears) thanks

[@TractorMike]

Yeah, they're pretty close. Sales under 40 hp are down 10% from 2019, 40-100 is down a shade over 4% from then, so it's not all that much different. It feels worse because we're down 17% in the under 40 range from last year and 8% in the 40-100 hp range from 2023. When you look out the door and see all the inventory and floor traffic is a lot lower than last year, it feels foreboding. Something we didn't mention, though, it's usually slow before a presidential election. Doesn't matter who runs or who wins, the uncertainty slows everything down. That, and the fact that 2020-2022 may have pulled some demand forward is likely what's going on in the market.

[@Will-tm5bj]

Was quoted in 2020 1025r with grapple and a backhoe for 21000. That same set up is pushing 32000 now. I'm glad sales suck, maybe we can get some decent prices. Probably not, they'll just fire a bunch of workers to make up the difference because this is America

[@Tiger-fv3nl]

I'm waiting on prices to drop because I need 2 more lol

[@rodneycarpenter3253]

If you do the scheduled maintenance on your tractor they will last for many years of great service.

[@neilkratzer3182]

The tractors from the 70's and 80's are going up

[@amossnowdaharleyman9179]

Price up, quality down. Duh.

[@AllodialTitle]

Classic tractor prices are on the rise, is it related to new sales slowing.

[@jjclarkson3261]

PRICE! $40k-$50k for a basic mid-sized tractor is nutz

[@user-qh1dk3fh5q]

They cost waaaaay to bloody much!

[@30farms70]

The prices are crazy. Priced an 8R last month $640,000. Insane. About to retire.

[@CumminsCat]

What’s wrong with used?

[@downhomebiggie1299]

Have a '92 John Deere 29 hp. she's not a beauty queen by any means but it's a solid tractor, ran hard but I can't kill it-- I've tried. It's more than paid for itself 50x over. No way would I buy new. Super easy to work on.

[@jerryking7276]

They to high we don’t need all the computer junk . All we need is cab heat ac bucket Basic tractor it not that hard but they think it is . Thanks Mike

[@trmac1446]

So if tractor prices will not decrease, what exactly will the dealerships and manufacturers do with the tractors? At some point business has to minimize loss.

[@MidwestFarmToys]

Well. You know the answer. Mass layoffs, mass closures.

[@trmac1446]

@@MidwestFarmToys With all due respect, that doesn't answer my question. If the tractors already sitting at the dealerships don't sell, what happens to that inventory? Prices must come down to move that inventory, correct? To minimize loss? What else can the dealerships and manufacturers do?

[@MidwestFarmToys]

@@trmac1446 lol well yeah but you already knew that answer, you just said it. The only other thing I can think of that they might do is transfer them to a different dealership who has demand for the thing

[@csharkin]

I have two JD’s and the price of parts is just plain stupid. Not sure about other manufacturers but enough is enough.

[@wesleygilbert7581]

Kabota will tell you $22,375.10 for a sub-compact tractor with a 60" mid mount mower, front loader, and a box blade. The day they want to deliver they raised the price to almost $26,000. Another dealer wants to play other games with incentives. It's dishonest! Why would you do business with a dishonest POS. Bobcat did $20,410 OTD with 60 months 0% $223 months. Honest, strait up, good service so far.

[@zzirSnipzz1]

Second hand tractors without all the emission stuff are more popular even more so when you can retrofit them witb gps steering,bew tractors are too expensive

[@DavidWright-xr9fp]

The cost is all about about reducing food production

[@MidwestFarmToys]

Most people need to go back to gardening and small farms will pop back up. Not to produce billions of bushels like mega farms do now? But just to feed your family and locality

[@MrBillmechanic]

who needs them? they're just an expensive high maintenance, complicated toy, designed to break down soon and that can be easily replaced by smaller cheaper lower maintenance machines, like a billy goat brush cutter, a stump grinder, and smaller machinery.

[@TomNorton-wz1rx]

Just to expensive

[@peterscheuer9118]

Mellinial farmer payments must be huge with all that green equipment. Wait for that to get sold...

[@jeffpiatt3879]

The US dollar now loses half of it's value every FIVE years. The DOW has "doubled" in five years but that is because the dollar has halved. Tractors are expensive because the dollar's value is in the tank. INFLATION! 2.6T annual deficits. Printed money.

[@rawhd7565]

Just Got Massey Ferguson 2605H We Will see 2 tire wheel drive Little over 20K With a Five Warranty will see👍

[@maryjackson3438]

Reliability is out the window, for all time high prices.

[@ponga782]

There is too much electronic garbage on tractors! That power shuttle shift is pure trash! Make a tractor that is full on manual! Then you will have a great tractor! They are way too expensive!

[@frederickbooth7970]

Same is true for the work trucks too! That`s if you can actually find a truck made for real work anymore.

[@6by6by6]

It’s nothing more than over reacting to the Covid period.. it’s the same across the manufacturing sector.. then add higher finance costs and you get what we see now..

[@NVMDSTEvil]

Why would someone buy a new tractor? They are too unreliable.

[@BeingMe23]

Sigh this happens every time interest rates go up.

[@markkallstrom5672]

CASE 7100 SERIES some of best tractors EVER MADE , we have two 7120s & 1 7130 Kallstrom Sweet Corn

[@nealrcn]

You do remember what happens when the Fed increases the interest rate. It is forecasted to slow sales.

[@TORAH-613]

THAT WAS A GOOD SALES PITCH