Supply chain woes and chip challenges are crimping supply of new farm equipment. It’s also driving up the price of used machines as farmers turn to that market to acquire iron. The Farm Progress PANEL wondered just how farmers would acquire machines in the future.
The question asked: “How will you acquire your next major piece of equipment?”
The idea was to get a handle on why you might acquire and what tool you might use. Of course we want to think the extra responses we got like one who said they plan to “steal” their next machine. A sense of humor is great in agriculture. Perhaps the most telling was the one respondent who said “2 I hope” corresponding to the #2 choice which was “buy new.”
The lease market may not be very popular these days – at least for this group of respondents. Just 6% said they plan to lease their next new machine. There are advantages and disadvantages to that choice, and knowing what works best for your farm isn’t always easy. Earlier this week we featured an article with a Western banker who offered insight into that lease or buy question.
The second possible response to the question was if they would buy new. Just over one quarter shared they would buy new when they acquire that next machine. Even with a tight inventory market, that new equipment does garner solid attention.
Most respondents this time out – more than two-thirds – shared they would buy used machines. The used equipment market has been hot lately driving up the price of used equipment. Some farmers like older machines for service work, others like to avoid the latest emissions gear. And of course even with higher prices, used machines do carry a discount from new equipment.
No matter your approach to acquiring new equipment, a well-planned approach will serve you well. Impulse buys – which remain popular in farm country – may not be possible even with high corn prices. Dealerships don’t have a lot of new, or used, machines waiting for you to pick up.
Thanks to everyone who responded to these PANEL questions.
The Farm Progress PANEL is your chance to share your thoughts on key issues. To take part, start by signing up for our daily mobile text service Farm Progress NOW. To do that text FARM to 20505, and be sure to respond to the text that follows we have a double opt-in system to make sure you’re signed up.
Later in one of our daily update texts we’ll provide information about how to sign up for the PANEL. And thanks to the respondents for helping us out.
Note: The Farm Progress PANEL is an opt-in SMS-based group. If you are a part of the panel, you may text STOP to unsubscribe.
The Farm Progress PANEL finds that respondents acquiring a ‘new to them’ machine are mostly thinking ‘used.’
