kstate90 - 10/6/2008 23:25

Here are some links to stock prices for the 3 top Ag companies.

Deere & Company
http://finance.yahoo.com/q/bc?s=DE&t=6m&l=on&z=m&q=l&c=

CNH

http://finance.yahoo.com/q/bc?s=CNH&t=6m&l=on&z=m&q=l&c=

Agco

http://finance.yahoo.com/q/bc?s=AG&t=6m&l=on&z=m&q=l&c=

All three companies have major stock price declines while sales have been at record levels.  If the downward spiral in grain prices continue how much of the equipment that is sold through 2009 and into 2010 will actually be sold?  I know there are always people who are going to buy new paint. Every year they make the new purchase, but what about the producer that maybe doesn't have the 200+ corn or the 60+ soybeans and is feeling a little squeezed.  When do they make that call and say maybe I better not.  What I remember of the 1970's and 1980's was that in the 70's you couldn't buy used or new. The demand was incredible.  Somewhat like the last 12-24 months.  In the 1980's they were having fire sales to sell off the excess new tractors.  I realize that the machinery companies of the 70's used a build and they will buy it mentality that led to overproduction of equipment.  I assume dealers have been buying some equipment that they didn't have sold to have it on the lot due to availibility issues.  The days of anything sells you better buy it today because I got two more guys looking at it are gone.  Machinery will still sell, but the glory days are gone for now.