Re: falling old equipment values

Posted by Paul in Mich on April 14, 2004 at 08:48:03 from (68.188.227.110):

In Reply to: falling old equipment values posted by Jonathan on April 13, 2004 at 10:35:30:

Jonathan, You raise a lot of questions, and certainly there are a lot of issues concerning farming in the 21st century. I wouldn't, however, look for a food crisis as long as we have fallow land in govt. programs. Also, global land that has either been mis-used, or recently developed are beginning to produce at rates that make it highy competitive for U.S. farmers. Brazil, for example is now growing crops at an exponential rate, and getting 2 and 3 crops yearly on the same ground. The Ukraine is still some of the most fertile land in Europe, and with the right managment can grow much more than it has in the last 75 years. World famine has much less to do with growing capabilities as it does with political instability, and infrastructure. It does some of these countries little good to raise good crops if they are rotten before they get to market. Farm equipment is a supply and demand commodity whether it is new or used. It also depends on who is buying and who is selling, and where to some extent. Land values do continue to increase, and I doubt that anyone has the answer to the suburbanites spreading to our farm areas. One big problem is that if a farmer sells off just one building lot on road frontage, it requires a zoning change which in turn changes the tax structure. If he has a half mile of road frontage and sells off 2 acres, in many cases his tax on the rest of the frontage is assessed on residental value and not farm value. This increases the need to sell off the rest of the frontage as farming in many cases wont produce on the same land enough revenue to pay the taxes. In addition, many farmers look at this as their retirement. They can sell off frontage and earn enough to retire in comfort, and who can blame them. If the developer a half mile away can make money on his land, then why not the farmer. But the enevitable end is put into motion by selling that first lot. What makes selling off frontage so attractive in the first place is the cost of farming relative to $2.30 per bushen corn. Diesel fuel prices have increased 15% in just the last year, but not grain prices except for soy beans if anyone has them to sell. We have a hard time selling any of our grain on the global market because the Europeans refuse to buy our bio-engineered (Round-up ready) crops, and have spent gazillions of dollars in propoganda trying to convince even the starving nations that our bio-engineered food will kill them and make them glow in the dark, and have birth defects. Starving African nations won't even accept our grain as a no cost huminatarian gesture because the Europeans have so poisoned their minds. When the U.N. decides to do something about it, then maybe we can sell our farm products on the global market. While we do have a lot of unresolved issues, we, (Americans and Canadians) are still the most efficient and prolific ag. producers on earth, and we keep getting better. Farming is a challenge, and not everyine has the stomach for it because of these challenges, but all is not bleak. For everyone who loses, someone comes out a winner. Its that way in every business endeaver. If you think that used equipment prices are low, then you can get some real bargains if you are in the buying market. If you are selling, someone else may get the bargain if you think you are selling too cheap.

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