Important Takeaways:

• Farmers ‘Prepare For A New Normal In 2025,’ As Prices On New And Used Equipment Become Overinflated
• This rapid supply increase forced the erosion of the scarcity premium placed on equipment during 2020 to 2022 and is responsible for the correction of the market we see today.
• Casey Seymour for Successful Farming dives into what’s going on in a vital sector that’s not getting enough attention for such a notable problem. Seymour discusses what this so-called “new normal” will look like in 2025 and factors that will trigger this “reset.”
• Seymour wrote:
  • The state of the used market is top of mind for anyone involved in the farm equipment business. Dealers’ lots are as full now as they were pre-COVID. Based on the data I have collected, that equipment has seen a 40% to 60% price increase over the last six years, and in the same period, interest rates have increased a staggering 188%. The reset is happening, but what will the new normal look like?
  • As you drive from town to town, it’s easy to see that supply has caught up with demand. The manufacturer doesn’t matter; dealer lots are full and, in many cases, teeming with model-hour equipment. The cost of holding the equipment is also at record highs. Typical large ag equipment carries a price tag of $400,000 to $500,000. With floor plan interest rates at 7%, dealerships are paying $28,000 to $35,000 in interest per year per machine.
  • More dealerships than ever are motivated to sell equipment. This has generated liquidation auctions not seen since 2014 to 2020. I spoke with several auction companies and heard the same account each time: The dealers need to get machines off their books, and they plan to use every means possible. Some reports have dealers taking machines straight from the farm to the auction block.
  • The price of late-model equipment is also a problem. In 2020, a new Class 8 combine cost $450,000. Today, the same spend would get a used Class 8, with 500 hours. Finding buyers for a used $450,000 combine is growing more complicated, not because the money isn’t there but trading a low interest rate for a higher one isn’t attractive.
• AUTHOR COMMENTARY
  • Economies around the world are staring down the barrel of everything bubble that was created post-2008, and then has been hyper-inflating since 2020, and with rates where they’ve been at it’s pushed nearly all sectors to the breaking point.
  • 2025 is going to be a watershed year, or I should say a bloodshed year, in my opinion, because a lot of signs seem to indicate this whole gravy train will be allowed to fail next year, because central banks will allow it to; which will be used to usher in this “great reset,” and enforce all these insidious agendas we know these globalists have been working to shove on everyone. The chaos that’s coming in 2025 and after will be a wild ride, and that’s putting it extremely mildly, and a collapse in the farming markets is just one aspect of it.
  • A mass consolidation of power and wealth is taking place and it’s all coming to a head, where central banks are closing in on their lifetime wish of finally becoming the buyers and lenders of last resort. No more middlemen, just them, in a land of consolidated power and wealth, of the haves and have-nots.

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