RIP

[SASKFARMER3]

That I could live with. So Case is working on price for 3 8120s with new engines but whatever.

[gregpet]

The new 8230's would have cost us about $80000/machine. That's the
price when jumping up to the new model.

[poorboy]

Have a look at the price of used combines at the Richie Bros sales in Saskatoon and Edmonton.

For farmers having lots of money the used combines are not holding their value. Dealers have to charge you more for a trade. New have gone up and used has remained flat or actually dropped in value. Bet dealer is quoting you the same margin for the dealer as last year.

Same number of acres to thresh as always. How many more new combines can they sell before there is no market for used combines, because everyone has all they need? Perhaps we are already there?

Just like the housing boom. How many new homes do we need in Canada when the population growth is stagnant.

About time that Deere, Case, etc. does away with the multiple deals anyway. Only favors sales to large farmers.

[Hopperbin]

Must agree with you poorboy. The buyers of the new machines with warrantee and ext. warrantee have not been paying up their share the last few years. Sask. you farm about 9000 acres is that correct? 200 thousand spread over 9000 acres works out to 22 dollars per acre. Your stepping up a model. You should not need 4 machines for that acreage. The 4th machine will cost you 260 thousand. Then you will have 4 machines depreciating instead of 3. I take it you have ext. warrantee so you are under warrantee for another year anyway which the dealer is using to pass onto the person that buys your trade. Suck it up, in the past we could trade up for less dollars per acre on the new machines. In my opinion I am with poor boy, the trades to new will only get worse. Your paying for a lot of more technology today. If the USA tax credits is true then used American machines will also be flooding our Canadian market.

[TOM4CWB]

Hopper,

US tax credits apply to US used machines as well as new.

Not likely good premium machines will flow north because there is no distortion pushing them north.

Agree 2009 Deere combines are great machines and our 2004 this fall was more fuel efficient and did just as good a job as the 09's.

Glad we got off the tread mill!

[fjlip]

Agtalk on US write offs...
http://talk.newagtalk.com/forums/thread-view.asp?tid=274441&posts=8#M2113472

[TOM4CWB]

What a huge 'bubble' is forming in farm equip. Machine Co's are dummping the liability on dealers.

When this pops... I would want to be well clear of the mess!

Unless they keep up the tax credits indefinately???

[Hopperbin]

Tom is Tax Credit and depresiation deduction the same animal? Or totally different, if different then farmers are paid entirely by the gov't to purchase equiptment. Tax credit must be just an earlier form of depreciation. That is tax credit should be deduction from the future depreciation. This is my view, not proven, so is a question.

[TOM4CWB]

Hopper,

Say you start with a machine with $100K purchase price.

A 50 percent writdown the first year would mean $50K off the taxable income of the buyer.

Tax credits usually pay in lieu of actual cash payable on taxable income.

If some folks have written down their undepreciated Capital Cost allowance to zero already... then only the difference amount would go against income that tax year re: depreciation.

A Tax Credit does not have this restriction... it just lowers the tax payable on that reporting year.

[farmaholic]

Quote:

These new super dealers just took away competion. Some just don't get that.

Interesting concept how it seems to work for everyone but primary producers.

[Hopperbin]

Not sure I agree with the taking away the competition. As a farmer and a buyer of used equiptment I am the one who decides to sign the check. Dealer gives me a price and a sometimes stale coffee. Yet I have the power to sign the check , no one forces me.

[fjlip]

If one year multiple deal traders pay more difference, us used buyers will get a cheaper deal!
Thanks guys for eating the depreciation and taking all the bugs out in the first few years!
I'd like to know how that pencils out?