It’s time to play offense and defense. The new reality of the farm equipment landscape means you can no longer take a lackadaisical approach to purchasing new or used equipment.
“You have to be much more proactive, as in the relationship with your dealer,” says Greg Peterson, founder of Machinery Pete. “You need to tell them what you are thinking for the coming three, six, 12 and 24 months in terms of your machinery needs. It wouldn’t hurt to let your dealer know your three-year plan.”
Many shifting factors are at play, creating the tightest machinery market ever, Peterson says.
“High farmer demand and low used inventories mean you can’t sit back and see how things shake out, or you’ll be behind the eight ball,” he says. “Since last fall, dicey parts availability has spooked folks, and the supply chain is still in shambles. These factors, plus your local dealers not having backup machines around, have worked together to foster aggressive auction bids.”
LONGER LEAD TIMES
Every step in the machinery production and sales process takes longer now than in years past. To match this new reality, machinery companies are adjusting their timelines.
For example, Great Plains is basically done selling 2023.
“We’re planning for the spring and fall of 2024,” says James Shurts, president of the company’s ag division. “I would say higher precision equipment is going to have longer lead times.”
For farmers who frequently buy or trade equipment, this proactive approach will be more seamless, Peterson says. It will be trickier for farmers who tend to buy used.
“To continually have success buying nice used tractors, combines, planters, etc., other farmers need to be trading in their equipment on a regular basis,” Peterson says. “In the past, used buyers always had access to a supply of used iron in good condition.”
That’s no longer the case. “My Machinery Pete warning the past year to farmers is if you don’t like paying the cur-rent triple premiums to acquire good used farm equipment, you really won’t like paying the premium when the farm income cycle shifts and used inventory is still historically tight.”
Sara Schafer uses her Missouri farm roots to cover crop management, business topics, farmland and more.
