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Hay might be better option..i got pricing to bale spring barley crop..freight advantage will help but wont be flash...

I bale straw anyway so really on cost of cut and rake...will have a few more bales...could then sow rape for fat lamb agistment

Ant...
 

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Hay might be better option..i got pricing to bale spring barley crop..freight advantage will help but wont be flash...

I bale straw anyway so really on cost of cut and rake...will have a few more bales...could then sow rape for fat lamb agistment

Ant...
Would not be hard for the export hay to double barley on a gross margin this year.
 

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Would not be hard for the export hay to double barley on a gross margin this year.
Have you heard prices for export hay - as in have they lowered it or still same as last year, My old girl does some for pyrness hay - will have to ask - all oats but...

The collapse in barley/wheat price would be equivalant to dairy job now...but i doubt there will be loans at 2% available...

The sooner Gina Rinehart starts growing grain the better, then Barnaby will be all over it - just like the dairy job...

Ant...
 

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Cattle chart ant
Ok so they are falling back to 2013 levels by the looks but not as bad as 2011...i would assume that operating cost now might even be lower than 2013 - fuel cheaper and feed definitely cheaper...

I would think our charts will look the same in 12-24 months...and when it goes to $3.00 everyone will feel like they have had there throat cut...

Urea is cheaper than years gone by but seems MAP and DAP hasn't dropped that much it seems...and chemical is no less...so definitely margin pressure this year...ohh and with DD fuel is less of a player...

Ant
 

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Have you heard prices for export hay - as in have they lowered it or still same as last year, My old girl does some for pyrness hay - will have to ask - all oats but...

The collapse in barley/wheat price would be equivalant to dairy job now...but i doubt there will be loans at 2% available...

The sooner Gina Rinehart starts growing grain the better, then Barnaby will be all over it - just like the dairy job...

Ant...
No idea on price, will find out soon enough, if no good I can change to domestic market for $200t.

Do loans at 2% really mean much in big picture? The ones that it's a big saving to are in high risk boat and high debit load.
 

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If i could pay 2 instead of 4 i would....simple...

They dont have to have high debt or be risky to access....

I dont have any debt on farm....if i could buy next farm and have a portion or all at 2% i would.

Ant...
 

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If i could pay 2 instead of 4 i would....simple...

They dont have to have high debt or be risky to access....

I dont have any debt on farm....if i could buy next farm and have a portion or all at 2% i would.

Ant...
A lot more advantage to the higher risk bucket having interest rates at 2%, as they could be upto 9% at a bank.

Do we really want the government playing in the market of leading money?

Pick up any farm paper lots of cheap money, just buy new steel.
 

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Equipment finance is subsidized in the price...i use to sell JD and i know how this works down to the last detail as i use to calculate it...

2% on new equipment is still 4 or 6% ...the deduction in interest rate cost is added to wholesale cost of machine...

They still borrow from reserve or wholesale..at present 1.75%.

The niaevity out there amazes me.

Ant
 

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sorry to hijack the thread but...

Equipment finance is subsidized in the price...i use to sell JD and i know how this works down to the last detail as i use to calculate it...

2% on new equipment is still 4 or 6% ...the deduction in interest rate cost is added to wholesale cost of machine...
is this still the case? one would think dealers would decrease the price of the equipment if paid in cash or financed elsewhere, in my experience they dont.

They still borrow from reserve or wholesale..at present 1.75%.

The niaevity out there amazes me.
highly doubt any money flowing to farmers from financial institutions, term debt or equipment finance, is sourced anywhere near this rate, just saying.
 

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Trev, yes the corporate calculate the interest subsidy...its part of the software...and you can work it out yourself...JD actually offered you a 1% discount on price paid on equipment if you sourced finance else where...Then as a dealer you can also subsidize interest rate.

So as a dealer you can do many things, subsidise the corporate rate down even further and take it out of your margin or simply apply that cost to the whole sale price, you can subsidise second hand gear 9I use to do this especially on harvesters) in the odd case due to tax we would do it the other way and lower the equipment cost and raise the interest rate for tax purposes...then the dealer gets paid an in interest rate earning over the life of the loan...i did this for young farmers to help them get the equipment...the total price paid when finance ran its term was the same...

As for banks etc - most will access reserve or whole sale cash and then put there margin on which in Australia's case is generally 2.25%...so they borrow of reserve for 1.75% and sell to home owner for 4%...now when you get into commercial or ag the risk goes up so does the margin...especially for over draft...

Machinery companies (Corporate not dealer) like JD credit have access to this...difference being to the bank is JD will make its company profits by selling the equipment - there fore the finance can be sold at cost price - as long as it moves the iron...Banks only have the money to sell - so they need a margin.

So when you see 1% or 0% finance (very common at lower end products like cars or lawnmowers as the amount of money is smaller) it is subsidized down from whatever they are purchasing it at..

There are Finance companies who act as third parties so if you see someone like lely or Kuhn with 2% interest on a rake, they are getting from a company charging 4 or 5 and paying the cost of the subsidy and adding onto wholesale...so its not just CNH or JD able to do it anymore...

Ant...
 

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Equipment finance is subsidized in the price...i use to sell JD and i know how this works down to the last detail as i use to calculate it...

2% on new equipment is still 4 or 6% ...the deduction in interest rate cost is added to wholesale cost of machine...

They still borrow from reserve or wholesale..at present 1.75%.

The niaevity out there amazes me.

Ant
Not always with all manufactures, comes down to there program at time. When I bought last new machine it was a true 2.82%.

How long ago did you used to sell JD?
 

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12 years ago, but all my friends still in the game, nothing has changed...

It can very easily be 2.82% as a true rate as you can get it whole sale for 1.75%, so if the extra 1% covers there admin and borrowing costs etc that's achievable for sure.

The assistance to dairy farmers is just wholesale money, doesn't cost anyone all they are doing is by passing the banks margin.

The payment ability situation is the same if you borrow at 2% and it goes up 25 basis you pay 2.25%...if you borrow from CBA at 5% and it goes up 25 basis then you pay 5.25%. So if it went from 2 to 9%...AUS would be broke over night...then you don't have to worry about it!!

Ant...
 

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So what happens when you ask for a quote on machine then shop for finance off that quote?
JD give 1% off purchase price...i think case have something similar cant remember....we did have clients do it...depends on what rate they have going at the dealer...i done hundres of quotes where i would have the two purchase prices and the jd finace repayments...they would then take to there own finance facility..bank or whoever...and get a repayment schedule of them and compare like for like...the tomato growing boys with bucket loads of gear could often equal JD or a touch better with a more flexible payment system...

Alot of dealers dont offer it and put it in there back pocket...

But most times CNH or JD would beat the banks even when you pay 1% more...the reason they did this is they could control the sale price better...and control the sale at the dealer level...so salesman not waiting on bank stuffing around...

I had mates who worked for case...there were slight diffferences in the finance but much the same really...

Harvey norman use this very same system...if you pay cash they take the cost of interest subsidy off...there pretty open about it in the shop...old Gerry would have you believe hes doing you a big favour...

Ant...
 

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JD give 1% off purchase price...i think case have something similar cant remember....we did have clients do it...depends on what rate they have going at the dealer...i done hundres of quotes where i would have the two purchase prices and the jd finace repayments...they would then take to there own finance facility..bank or whoever...and get a repayment schedule of them and compare like for like...the tomato growing boys with bucket loads of gear could often equal JD or a touch better with a more flexible payment system...

Alot of dealers dont offer it and put it in there back pocket...

But most times CNH or JD would beat the banks even when you pay 1% more...the reason they did this is they could control the sale price better...and control the sale at the dealer level...so salesman not waiting on bank stuffing around...

I had mates who worked for case...there were slight diffferences in the finance but much the same really...

Harvey norman use this very same system...if you pay cash they take the cost of interest subsidy off...there pretty open about it in the shop...old Gerry would have you believe hes doing you a big favour...

Ant...
Seems a bit has changed from the good old days your remember, and I know exactly what you mean.

Go get your self a few quotes on new steel and see what you find out.
 

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Seems a bit has changed from the good old days your remember, and I know exactly what you mean.

Go get your self a few quotes on new steel and see what you find out.
Where is he off? I haven't bought a new piece of iron since 14 but there is two prices

I could do 2.9 with John Deere but had nearly a 2% price cut for paying cash

I can't remember how my Case IH purchase went anymore, just remember the CNH Capital was 8.9% witch I did go with for a short time

I had bought a Vermeer disc mower and a power rake around the same time as an MXU tractor, 0% interest? What's the catch right? There was a boat load off of the purchase price

Maybe I am missing something here?
 
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