At the 38th annual Indiana/Illinois Farm Equipment Show underway at the Indiana State Fairgrounds, equipment ownership and financing strategies were explored during the Hoosier Ag Today free seminar on Tuesday. It is no secret that times are not good in the equipment business; but Stephen Filbert, with Macallister Machinery, says indications are we are at the bottom, “We are beginning to see used equipment prices begin to stabilize. That gives us an indication we are at or near the bottom.” What still remains unknown, he said, is how long we will be at this level before recovery sets in.He told the audience at the farm show seminar that it would likely be 2018 before there was significant recovery in the farm equipment sector.
Filbert said, even in tough times, there are strategies for meeting your equipment needs without boing broke, “Used equipment prices are still depressed, so there is an opportunity for those producers who need to add to their fleet.” He urged farmers to work with their dealer to discuss an option that was right for them, “We are not just out there to sell you something. This is a relationship business, and we want to work out a plan that keeps you farming for a long time.” He added, with manufacturers anxious to move inventory, there can be some good arrangements made.
Filbert said one simple strategy is extent your warranty, “With guys holding onto equipment longer than they have the past few years, if you can extend a warranty for a year or two, it can protect you against some costly major repairs.” During his presentation, he also outlined some creative financing options and cautioned farmers about some of the fine print in lease and rollover programs.
Gary Coleman, with Farm Credit Mid-America, who also participated in the Tuesday seminar, stressed that financing equipment over a longer period of time is another strategy that can work. He also urged farmers to talk with their lender before they make any equipment deals.
The free seminar series sponsored by Brodbeck Seeds and Farm Credit Mid-America will continue on Wednesday with a 2017 weather outlook from Hoosier Ag Today weather forecaster Ryan Martin, as well as an economic outlook with popular Purdue Ag Economist Dr. Chris Hurt. The program will begin at 11am.