Facebook follower Jeff R. from South Carolina asks: “Pete, with the tariffs on steel and aluminum will new tractors go up in price? And will we see a rise in farmers buying more used equipment?”
Pete’s Reply: "Great question Jeff. Answer is YES to both your questions. Here’s a great piece by my good friend Tyne Morgan, host of U.S. Farm Report TV show on how equipment Mfg’s are already being affected by the steel and aluminum tariffs kicking in:
I think the past few months here of late Spring through July '18 have also proven that, despite the continuing tough ag economy, falling commodity prices and trade war/tariff woes, that farmers are indeed placing increased emphasis on finding and acquiring good condition used farm equipment, tractors in particular. If you follow my blogs/videos/social media posts you’ve been seeing a steady stream of strong auction sale price reports from around North America here Summer of '18:
I have seen a fall in values on average condition used farm equipment, that dip began to show up in mid June '18. But again, the good condition used iron has been holding value well.
Should be interesting rest of the year. Stay tuned.