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| High grain prices have created and supported these high prices. This time around guys with paid for land watched their 'good thing' turn into lottery winnings and why not use that money to make things easier. The only problem comes in when guys start thinking there is no way the high prices can go away and make long term purchases based on $7 corn. Right now we are right around the cost of production for a lot of us, so the money tap as slowed way down. So going forward we may have seen the last of guys bidding up a 90's magnum to low hour, late model tractor prices.
Being a small farmer almost all of the high grain prices went into paying off debts early, but larger farmers surely started piling up some cash and that will take a while to grind through. As was stated 'if a farmer has $1, he'll spend $2' will go on for a while longer. | |
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Used machinery prices in the next 3 years?
