Machinery and land prices....down?

[Herc]

Redhead dumped the X9s from the Monette Kamsack deal.

And yet they got $150k more than what the original buyer paid for them X9’s…..

[bucket]

Not sure , but definitely seems to be endless money involved from somewhere
Funny how the ex CWB worshippers like chuck cry about their family farm neighbours “big trucks, machinery and boats” and yet say nothing about these mega farms swallowing up everything in sight .
Being so petty must be a tiresome job .
Monnette way over 300,000 ac now , contributes zero to any local community economy they farm around , but any free market family farm is the problem in their eyes …. and the fed governments agenda .
Yet that who is and has been responsible for the vast majority of wealth creation to most rural communities in western canada outside of oil for over 50 years .
It’s hard to understand the constant attacks on the family farms from so many angles when one sees what’s actually going on

If you are less than 5000 acres , you are considered a dinosaur , by almost everyone.

Except your neighbour that enjoys having a coffee and farms the same amount . Knows that each other can count on help with a phone call. And know where you are.

You will see an accelerated consolidation far greater than the 70 and 80s in the next 5 years.

[furrowtickler]

If you are less than 5000 acres , you are considered a dinosaur , by almost everyone.

Except your neighbour that enjoys having a coffee and farms the same amount . Knows that each other can count on help with a phone call. And know where you are.

You will see an accelerated consolidation far greater than the 70 and 80s in the next 5 years.

Unfortunately and fortunately you are very right
Actually in my area now if you are under 10,000 ac you’re literally a no body in the “ag scene” , but that’s ok for most of us .
The trick going forward will be to hang on to what we have now .

[seldomseen]

None of this makes sense to me.
I was shopping for a combine last winter at the local Redhead dealership.
One year old 9250’s were out of my budget at 725,000. They did have a 2018 9240 on tracks for 525,000 so I looked at it but decided it did not suit my needs. Sales man left my house and said on the way out he would find me a combine in my price range and left. Never heard from him since that day.
Auction day comes and Redhead has some combines in it.
The one year old 9250’s bring about 480.000 and the very same 9240 on tracks they tried to sell me they get 285,000.

[furrowtickler]

None of this makes sense to me.
I was shopping for a combine last winter at the local Redhead dealership.
One year old 9250’s were out of my budget at 725,000. They did have a 2018 9240 on tracks for 525,000 so I looked at it but decided it did not suit my needs. Sales man left my house and said on the way out he would find me a combine in my price range and left. Never heard from him since that day.
Auction day comes and Redhead has some combines in it.
The one year old 9250’s bring about 480.000 and the very same 9240 on tracks they tried to sell me they get 285,000.

Yup , dealers refuse to give the farmer looking at one piece of equipment any remote kinda of deal … they are all the same now .
They could care less , only about multiple deals now .
Yet they will take a bath at auctions, your right it makes zero sense what’s going on the past 3 years at least

[Crestliner]

None of this makes sense to me.
I was shopping for a combine last winter at the local Redhead dealership.
One year old 9250’s were out of my budget at 725,000. They did have a 2018 9240 on tracks for 525,000 so I looked at it but decided it did not suit my needs. Sales man left my house and said on the way out he would find me a combine in my price range and left. Never heard from him since that day.
Auction day comes and Redhead has some combines in it.
The one year old 9250’s bring about 480.000 and the very same 9240 on tracks they tried to sell me they get 285,000.

It's very simple to make sense of it, the term is "whatever the market will bear". When the free Covid money came timed with a grain price run up hit, a lot of "found money" showed up, people wanted to buy that which had been deferred for years and were willing to pay crazy amounts to get it. For some they spent way more than the windfall and piled on the debt. Human nature.

I have seen the cheapest guys build their dream bin yard and grain dryer system and pay way more than they would have 10 years ago.

For some the big drought, the big debt build up, and net grain receipts won't carry the new cost structure and there will be a reset.

I'd say a $525K combine carried for a year and dumped for $285K....the reset is well underway.

Cash is King as it always is and has been.

[fcr]

Nutrein said years ago that it was focusing on large farms because under 10000 ac will not be sustainable.We have great local independant input dealers who gladly take our 500,000 plus every year, and they appreciate the business.

[furrowtickler]

Nutrein said years ago that it was focusing on large farms because under 10000 ac will not be sustainable.We have great local independant input dealers who gladly take our 500,000 plus every year, and they appreciate the business.

Exactly, same situation in many areas
Unfortunately, Nutrien and other big guys buying out all independent dealers now .

[jazz]

They must have told their Chinese backers a good story to keep them sucked in

Less than 10% of Canadas landmass is privately held and most of that is in Sask and Alberta.

Monette is roughly the same size as Bill Gates. What do they know.

Stuff the peasants into crumbling 15m cities, own everything outside.

The local dealership is packed full of X9s getting greenlighted for someone. No greenlights for anyone else for an entire year. Looking like the shop space is reserved for a select set of customers now.

[furrowtickler]

Less than 10% of Canadas landmass is privately held and most of that is in Sask and Alberta.

Monette is roughly the same size as Bill Gates. What do they know.

Stuff the peasants into crumbling 15m cities, own everything outside.

The local dealership is packed full of X9s getting greenlighted for someone. No greenlights for anyone else for an entire year. Looking like the shop space is reserved for a select set of customers now.

A few years ago that was a wild conspiracy theory, it’s unfolding before our eyes now

[ajl]

None of this makes sense to me.
I was shopping for a combine last winter at the local Redhead dealership.
One year old 9250’s were out of my budget at 725,000. They did have a 2018 9240 on tracks for 525,000 so I looked at it but decided it did not suit my needs. Sales man left my house and said on the way out he would find me a combine in my price range and left. Never heard from him since that day.
Auction day comes and Redhead has some combines in it.
The one year old 9250’s bring about 480.000 and the very same 9240 on tracks they tried to sell me they get 285,000.

Bought a combine yet? Seems that under $500K for a one year old 9250 is somewhat reasonable. As an STO, I had my eye on the MF 9790 in that sale that went for $20K which I though was fairly reasonable. Bid on an older MF this spring locally that went much higher than that. Run an 8570 now. One of the things I like about this area is that small farms are quite common. I used to be a Nutrien customer and the local was fairly good to me but switched to getting my supplies from a couple independents this spring as nutrien is woke. Fairly good service at both so they still put some effort into the little guy around here.

[jamesb]

Less than 10% of Canadas landmass is privately held and most of that is in Sask and Alberta.

Monette is roughly the same size as Bill Gates. What do they know.

Stuff the peasants into crumbling 15m cities, own everything outside.

The local dealership is packed full of X9s getting greenlighted for someone. No greenlights for anyone else for an entire year. Looking like the shop space is reserved for a select set of customers now.

We have been on the list to get our two green lighted since last fall. They called a few days ago and we finally got them in. Most of these shops are seriously short staffed.
Lots of thoughts on this tread. For me I look over the fence and don't try to figure out how some of these guys do it. It not going to be a surprise when some leave the industry. All it is going to take is the creditor to call the loan or decline the next big deal. I dunno, the banks are still pretty bullish on and I have never found it easier to access credit. Things will turn quick when they get cold feet. Kinda like musical chairs IMO. For me, I am not seeing any sign of softening anytime soon. This spring we were offered a half right next to the home quarter that the neighbor's have had for 100 years. It was a no brainer to buy it but it was the highest we ever paid. I think there is gonna be a huge amount of land come to the market by people on the way out and wanting to cash in, in our area at least. If I didn't have both sons farming I never would have kept expanding. Every time one of these land deals comes up they are getting tired of me asking how serious they are about farming. For me I would feel easier if we could get another rain. We haven't been bad this year for most of our land but crop is slipping pretty badly the last 10 days. The drive up to Ag in Motion showed me lots are way worse and I don't have a whole lot to complain about compared to many.