Like other segments of the U.S. economy, farm equipment dealers have been impacted by supply chain disruptions caused by COVID.
During the MATE Show in Billings, Mont., C & B Operation’s Tim Schulz said these disruptions include everything from parts to new equipment.
“By and large, it probably has a bigger effect on new products landing,” Schulz told reporter Russell Nemetz at KTVQ. “Gators, tractors and haying equipment are certainly in short supply. We just got notification that we're going to be really short on balers this coming year. Retail is certainly taking priority. If folks are wanting to get equipment, you better go put a name on a purchase order and stroke a check, and you'll have a better chance of getting it. Even then, it's still out several months or longer.”
He says rising input costs are another direct result of the supply chain disruptions.
“Obviously, the cost of inputs of equipment, as well as availability is certainly a struggle for guys that are needing to update,” said Schulz. “Additionally, some of the other inputs like fertilizer and fuel are a couple of the topics that always come up in conversations that have certainly went through the roof and pricing. So, hard decisions are having to be made and they're trying to figure out what really makes sense.”
He says the shortage of new equipment has created a red-hot market for used farm equipment.
“It certainly has the same effect,” said Schulz. “The shortage of new trickles down into the used. It's also improved or increased, depending on how you want to look at it.”