All the talk at coffee row today.
The Saskatoon agricultural equipment manufacturer has faced 'significant losses' and cannot meet its obligations, court documents show.
I was just thinking the same thing this afternoon, Bourgault could be close too and certainly the seed twins. Its funny how we were told only a couple months ago all was well..... My bet is AGCO picks up the ruins or Kubota. AGCO wouldn't even have to pick up that many new dealers in Western Canada, plus they could easily sell the hay tools through their dealers as well.Most unfortunate. I was thinking that I would look seriously at a Morris tank next time around, they have a very simple and accurate sectional control system. Hopefully someone picks up the pieces and runs with it.
But in all seriousness this won't be the last company to have this happen, one could easily substitute Bourgault or any number of companies that have rapidly expanded into a downturn in AG into that article. Wild times ahead folks...
Some of this has been done already.
A lot of land will sit idle before farmers stop buying iron. Most guys are stuck between a rock and hard place. These bigger farms are leaseing every piece of iron and there imported work force has zero skill set to grease or fix a thing. There’s a lot of 2-3yr old equipment on lots that’s never seen grease or service without dealer doing it. A guy should probably be buying Ritchie shares as a hedge.Bourgault laid off a number of employees a year or so ago, now this. It’s only a matter of time before all the manufacturers are in trouble. Keep building these soon to be million dollar drills and see how many they sell.
Hate to say it but I like what’s happening. The only way there is going to be a correction is when is farmers put our size 12s down and say no more to this ridiculous high priced deprecating iron.
Its time more than just the farmers start suffering.