In good order

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By Dwain Duxson.

In good order - I read somewhere this week that our Machinery fleet was in the best shape ever. So what they mean by this is that never before have Farmers been equipped with a fleet of newer Machinery.

We wrote about Peak Australia yesterday. Well, if the above is true, then we are at Peak Machinery right now. Of course, it’s been on the back of some good years and the instant asset write-off scheme. And it got me thinking: If that's the case, then that will fuel the second-hand market for, say, 5-10 years ahead.

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We are definitely heading down the other side of the peak right now, as many Farmers have told us they are not buying new anymore. So, this could provide an imbalance going forward. We have been saying for a while now that to fuel the used market, you need someone to buy new.

If this not-buying new situation is ongoing, then that will hurt the used market once we get through this 5-10 year period of used Gear coming onto the market from the peak. I have been talking to a couple of Contract Harvesters who have said they have always bought the biggest and best Headers but have decided that their next Header will be a mid-size one. Reason? Price, yes, but also, when they are Harvesting lesser Crops, they can't get enough capacity into the bigger Headers to do a good enough job. Does there come a point where Machinery outprices itself and is that time looming or now? Are you ditching buying new or do you think you will remain in the market for some new things? Reply to dwaind@farmtender.com.au

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