High prices

[730virgil]

so what happens to the tax money when they lose the house because they can't make the house payments?

 

[the tractor vet]

Well i never ever thought that tractor prices would go to new levels . The most i ever got out of and 806 that i had fixed up for myself and a person kept bugging me on price i threw a price on it that i just knew would run him off and he left as i chuckled , BUT he came back with his wife not 20 min. later and said she will right a check , ah no i don't know you and this sale has to be cash . In OLD bills , so he sent the wife to the bank and came back with cash . Never did i ever think i would sell and 806 diesel for 8750 . Now not far from me some guy has one asking over 19 grand. . Can't tell ya how many 706 gasser's i sold for 32-3450 , Now they are asking over 6 for them and i don't have a one to sell. and everyone i sold had a new clutch and T/A with a MCV rebuild along with a three year warranty.

 

[Bruce from Can.]

Whom ever foreclosed on the house becomes the new owners, and the tax liability becomes their responsibility. At least that is how it works in my municipality. And the municipality can sell the property to get their property tax money if the property owner rd default. Municipal property land sales through seizure of real estate almost never occur here.

 

[Geo-TH,In]

Some people work for money.

My momma said it takes money to make money.

Some people know how to make money work for them.

 

[jon f mn]

The price if older tractors is pushed up by the cost and poor reliability of anything new. The older 200hp tractors large enough for some work today are highly sought after.

 

[Geo-TH,In]

Supply and demand.
I hear there are too many Cubs in Al.
Cubs are a rare sighting in In.

 

[BarnyardEngineering]

(quoted from post at 15:37:56 02/05/23)But look at restaurant and retail parking lots they are full of customers buying things.

Eating at a restaurant is one of the few "affordable" diversions/means of enjoyment left. Still, you ask a restaurant owner, and they're hurting for business.

Boomers pass judgement on the "Millennials" (actually Zoomers) and their "avocado toast." If they didn't spend so much on "avocado toast" every day they could afford to buy a house or rent a decent apartment. The truth is housing is so off the charts these days that denying yourself a simple pleasure like a $5 slice of "avocado toast" isn't going to make a dent, so you may as well treat yourself to a simple pleasure.

BTW avocado toast is an allegory for anything that's a "simple pleasure" which can actually be a piece of bread that has been toasted and has avocado spread on it.

This post was edited by BarnyardEngineering on 02/06/2023 at 06:10 am.

 

[redforlife]

Interest rates were at such a low (near nothing), that it would take a sustantial increase on that to make any difference at all. A couple three 1/4 percent interest rate hikes is not going to make much difference, when it needs to go up 2 or 3 percent. And that only comes into effect for those who are financing what they buy.

But there is another side to that. The other side being the ones who are not using financing to buy thier things (paying with thier own cash). Even right now, a CD, savings account, etc., is not paying an interest rate worth while of having your money in there. Might as well keep that money invested into something else. If that money is invested in farm equipment, then there is an income tax break, as that can be chalked up as an operating expense. Probably do you more good depreciating something out on your income tax, than using the same money to draw interest in a CD at the bank. If the used equipment don't depreciate in value over time, then that would be kind of a plus in the end. The end result of that kind of doesn't make any difference, if the purpose of owning it is to help you out on income taxes.

Right now, most farmers have extra cash in thier pockets. We won't see any changes until that extra cash is no longer there. What will that take? I don't know. $4 corn for 3 years in row might make alot of changes. 10 or 15 percent interest rates would definately put a hurt on something.

Your not going to change the interest rate a 1/4 of a percent, and see the changes that you are wanting to see.

 

[Dennis(IA)]

About 65 miles west of Omaha 150 acres sold for $13,600, two weeks ago.

 

[ss55]

Don't forget the soybean checks from 3 years ago and all the ag property tax reductions in the free money being handed out that drives up inflation.

A lot of farmers around SEMN are reinvesting last years profits on anything they can find to buy. That inflates the price of farm inputs.

 

[ss55]

I thinking a return to normal prices like $3.50 corn and $7.00 soybeans for a few years would take much of the steam out of the over 30 years old hobby tractor market.

 

[BarnyardEngineering]

(quoted from post at 10:56:37 02/06/23) I thinking a return to normal prices like $3.50 corn and $7.00 soybeans for a few years would take much of the steam out of the over 30 years old hobby tractor market.

I've never understood this attitude. "The farmer must suffer." Just because they always have does not mean they always have to, or even should suffer.

$3.50 corn and $7.00 beans would kill a lot of farmers, even those that socked away the money from high commodity prices and didn't go out and spend it on new equipment.

Heck it wasn't but a few years ago there was a marked increase in farmer suicides because they saw no way out.

Can't you let the farmers have this win? To heck with your cheap hobby tractors.

Nope, just like a bucket of crabs. Every time one starts gets close to escaping the rest reach up and pull him back down. You wonder why the kids move off the farm.

This post was edited by BarnyardEngineering on 02/06/2023 at 10:34 am.

 

[NY 986]

If I had to guess a high percentage of collector money is non farm income. There are guys who sold their places for big money several years ago and have money to play with among the various types of collectors.

 

[ss55]

I'm just saying be realistic. Today's high commodity prices are a windfall rather than a new normal.

 

[Texasmark]

Do not agree on the poor reliability of new tractors part. I like my 3 new ones bought since 2009 and LOVE their economy....0.046 gal per HP being used. No way would my 3 60-70 vintage JDs meet that.....and my 2009 Branson 4wd (its quoted fuel efficiency) is happily connected to the implements I used with my JD 4230 2wd.