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Canuck_2
Senior Contributor

New machinery $$$$

Guess you should order all your new machinery yesterday as prices are expected to rise quickly.

 

https://www.farm-equipment.com/articles/15258-watch-list-for-farm-equipment-steel-tariffs

 

The March 2, 2018 Wall Street Journal (WSJ) article by Bob Tita reported on President Donald Trump’s pledge Thursday to impose stiff tariffs on steel and aluminum imports. Trump’s pledge to put 25% tariffs on foreign steel that is to be enacted next week, will likely push up domestic metal prices – already on a tear – higher, reports Tita.

Farm Equipment had heard from manufacturers at last month’s National Farm Machinery Show that steel was rising rapidly, and that other industries, like piepline projects, were already devouring plenty of steel. One component manufacturer shared that his purchasing agent received an email about high concerns of steel pricing, even before Trump’s announcement.
 

Of course you might be able to buy imported machinery cheaper than USA

 

“With equipment dealers’ holding very limited implement inventory, higher steel costs are likely to make their way through the distribution network quicker than some end users would expect. It’s hard to think of a worse time to drive up the cost of equipment purchases for farmers and ranchers, but manufacturers will likely be forced to pass cost increases on very quickly. 

“Depending on how the tariffs are implemented, this action could encourage overseas’ interests to replace raw materials imports into the U.S. with finished parts or skip that step and push finished products into our markets, avoiding the tariffs altogether. This would leave U.S. manufacturers at a price disadvantage while rolling out the welcome mat for overseas manufacturers to flood our markets with finished goods, untouched by tariffs. 

15 Replies
BA Deere
Honored Advisor

Re: New machinery $$$$

Steel prices rising 25% should NOT result in a machine`s cost going up 25%.  The reason machinery is so high priced is that electronic crap, the actual iron is a small cost.  That`s not to say the companies won`t try to rip us off, like when corn was $7 the movie theaters tripled the price of their popcorn. 

 

But I`ve bought new JOHN DEERE tillage parts like cultivator shanks (just a bent piece of steel) and it had "made in Mexico" stamped on it....well sucks to be them!

GreaTOne_65
Senior Contributor

Re: New machinery $$$$

Oh, come on, BA. You are not going to believe that, or talk yourself into that folly, really?? All Trump did was give JD another excuse to jack up the price of already overpriced merchandise!! This is not going to end well for farmers, BELIEVE ME!! LOL!!

cmilligan1958g
Senior Contributor

Re: New machinery $$$$

The scrap iron price for old GTO's and fuel-guzzling motor homes, should go up, soon.  Cheer up!

elcheapo
Veteran Advisor

Re: New machinery $$$$

Yeah....alot of high tech electronics in bearings and
Cultivator parts.....
BA pop your head out

Our cost will rise due to Tweety
And what we get for our labors will fall
Due to Tweety,......

No....I'm not supposed to use that kind of
Language I'm thinking .

BA Deere
Honored Advisor

Re: New machinery $$$$

You must be a real peach to have as a neighbor Elcheapo.   Since you shun your local community and buy where everything is cheapest...Does the local volunteer fire department know this?  If God forbid you ever have a fire, they might just say "Call the Chinese fire department!   You didn`t support out businesses so why should we put out your fire...you ol` cheapskate!".

BA Deere
Honored Advisor

Re: New machinery $$$$

The stuff I farm with just went up 25%!   😉

elcheapo
Veteran Advisor

Re: New machinery $$$$

Your an #$&

And I think everyone knows it

What pray tell does trying to save money
Have to do with putting out a fire on my
Property ???

Forgive me, I didn't know it was a sin to try
To save money in this economy.

And as wanting cheap med supplies and
Not support local...
I spend $385 for lantus every month and a half,
Then another $30 for the same time period
For needles, plus another $70 a month for
Medications
..plus Insurance premium....and you think
I sould spend $198 for test strips when I
Can get it for around $35 at Amazon !!!!

Oh fire department...yes I've run. A hose, and
Was with ems....and also used to responded
With food and drinks at bigger fire when
My body wouldn't let me do the other.
My local lodge donates to the area fire department s,
And a local fire department has a dance each
Year, I buy more than 2 tickets .

I know what they think of me.....

I will not answer for you, but I have a pretty
Good idea

Oh yes, the fire department s are on the tax rolls
Here, so I support them

Anything else you want to blame on me ????
BA Deere
Honored Advisor

Re: New machinery $$$$

Because people on the local volunteer fire department also work at the factory and supply store...but you apparently by pass them in favor of the cheapest products from overseas.  ...well????  Maybe the Chinese fire department can put out your fire.

schnurrbart
Veteran Advisor

Re: New machinery $$$$

At least he can afford one and doesn’t to drive a bus!!