Economy Down on the Farm 2
Yesterday, we heard Paul Kindinger, President and CEO of North American Equipment Dealers, tell us that fear was the primary challenge to our economy. Today he offers thoughts on what farmers should be thinking about as they go forward.
I’m a farmer, I need a new combine. Last year was a good year. Do Itry and get a loan for a combine right now or do I pull in my horns and wait?
(Kindinger) “That’s an excellent question David, if I’m a large farmer and I’m on a rotational depreciation schedule and I made a lot of money last year, chances are I’m gonna go do that. If I’m not in that situation, and with the bonus depreciation going away, I’m probably a little hesitant to do that and the main thing that sways me is waiting to see what happens to my input costs when it finally comes time to put a crop in the ground or take care of the orchards or whatever I have out there.
Paul thinks that if commodity prices stay good… good things for banks, manufacturers and farmers will follow.
