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| Seed doesn’t go up in price 5-8% every 3-6 months using the excuse of Covid or Tariff. They also produce a product that shows you can pay for their price increases with higher yields. So I would leave the seed guys out. Fertilizer is crap. Equipment guys pretend like you are getting some big discount because they have Jacked the prices up to high. Equipment decrease in value as soon you sign paperwork. If someone isn’t buying new there isn’t going to be any used equipment to buy. If equipment dealers like your self actually believed the price of new was fair you definitely would think your trade in value offers would have increased with every OEM price increase. The disparity in used vs new is so bad that many of us that are getting something different are parking the tractor that is getting replaced in a shed as spear cheap( because a dealer told you it wasn’t worth anything) horsepower. The reason for replacing something is usually because of the possibility of in season reliability. Parts availability is questionable at best and expensive. Try finding replacement Draper belts or sickle/cutter bars on 10-15 year old Drapers in season. 5% price increase on a tractor 15 years ago that COST $200,000 is a lot different then a 5% increase on the same basic tractor that now cost $600,000. All they have added is a couple screen and operator comforts. Tractors go up in price based on technology when everything that uses the technology has gotten more affordable. Example would be TV, computers, phones. Their cost is either the same as 20 years ago or is significantly lower in cost(TVs). All of these item have actually improved. Farm equipment has no competition in the market. | |
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DEERE CFO SAYS TECHNOLGY IS ANSWER
