[HN Gopher] Wild bidding wars erupt at used-tractor auctions acr...
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       Wild bidding wars erupt at used-tractor auctions across the U.S.
        
       Author : SQL2219
       Score  : 117 points
       Date   : 2021-11-14 14:17 UTC (8 hours ago)
        
 (HTM) web link (www.bloomberg.com)
 (TXT) w3m dump (www.bloomberg.com)
        
       | mrfusion wrote:
       | We need an open source tractor. Who's with me!
       | 
       | It doesn't even have to be great. Just minimum viable product and
       | let iterations improve it.
       | 
       | Maybe a billionaire would fund kicking this off?
        
         | JohnJamesRambo wrote:
         | The old ones are about as open source as you can get haha.
         | 
         | I can see everything on my Mom and Dad's old Massey Ferguson
         | tractors and every single part is available online from a
         | plethora of vendors since there really aren't that many parts.
        
         | rascul wrote:
         | There was one on HN about a month ago.
         | 
         | https://news.ycombinator.com/item?id=28827785
        
         | carbocation wrote:
         | Check out https://opensourceecology.dozuki.com/c/LifeTrac
        
         | markvdb wrote:
         | Have a look at the plans for USSR tractors. Those were fairly
         | well-documented. An acquaintance of mine working at a kolchoz -
         | a USSR collective farm - told me whenever new rolling equipment
         | came in, they usually took it apart and rebuilt it from
         | scratch.
         | 
         | The Belarus (MTZ) tractor factory [0] still produces a popular
         | super maintainable model that hasn't changed much since the
         | 1970's.
         | 
         | [0] https://en.wikipedia.org/wiki/Belarus_(tractor)
        
         | rzzzt wrote:
         | Would three wheels be enough?
        
       | dzdt wrote:
       | There are two kinds of optimum strategies for farmers, and there
       | has been a long term shift from one to the other.
       | 
       | The older strategy is for a farm to be no bigger than a single
       | family can handle, and to be as self-sufficient as possible. Here
       | equipment is run as close to breaking down as it can be without
       | actually being broken down. A tractor would be used <30 days a
       | year (planting, fertilizing, weeding, harvest) and sit idle
       | otherwise. It doesn't make sense to pay for a super-expensive
       | machine to sit idle. The optimum is lowest cost to purchase,
       | lowest cost to repair, cheapest option that can get the job done.
       | A farmer builds a collection of nearly-broken down machines over
       | years to have backup options if one isn't working when needed.
       | 
       | The other optimum is to have the largest, most effective, most
       | efficient machines and use them enough to justify it. This makes
       | sense at the industrial farming scale or as a contracting
       | business where the equipment is owned by someone who does
       | contract jobs for many smaller farmers. For this case the tractor
       | needs to be running and making money as many days a year as it
       | can; any down time is money lost.
       | 
       | The shift over years has been that the second strategy produces
       | more crops with lower expenses than the first, and is taking over
       | to the extent it is almost impossible to run a small farm without
       | going bankrupt.
        
         | mschuster91 wrote:
         | > The shift over years has been that the second strategy
         | produces more crops with lower expenses than the first, and is
         | taking over to the extent it is almost impossible to run a
         | small farm without going bankrupt.
         | 
         | There is value in small-scale farming. If there is one thing
         | urban hipsters love to pay for, it's artisanal, high quality
         | organic food. There are farms where you can see pictures and
         | datasheets of all the animals living there and you can pre-
         | order certain cuts of the specific animal once it is
         | slaughtered and processed.
        
         | yalogin wrote:
         | In the US, isn't this the case for a long time now? I thought
         | the consolidation towards bigger and bigger farms is the trend
         | for a few decades now.
        
           | mistrial9 wrote:
           | yes, quite a bit of consolidation after the 1980s in the
           | farming sector. culture reference: Farm Aid
           | 
           | https://en.wikipedia.org/wiki/Farm_Aid
        
         | theptip wrote:
         | > The shift over years has been that the second strategy
         | produces more crops with lower expenses
         | 
         | I read an interesting book recently (Seeing like a State) that
         | makes the claim that large-scale monocrop industrial farming is
         | only actually "optimal" if you don't price in the heavy
         | subsidy, and if you ignore the non-revenue contributions of
         | small-hold agriculture (e.g. the land might provide fuel,
         | crafting materials, and otherwise support the farmers in a way
         | that doesn't show up on the balance sheet). Not to mention that
         | the larger farms tend to be extractive, in that they are using
         | up water from the water table and nutrients from the soil, and
         | so they will eventually degrade the land to the point where it
         | cannot be productive any more.
         | 
         | I did some digging and the farm subsidies in the US are truly
         | eye-watering, and particularly notable is that the biggest 10%
         | of farms take 90% of the subsidy, so we are not even
         | subsidizing "traditional working farmers" or anything like
         | that, just shipping hundreds of billions to huge ag corps.
         | 
         | I wouldn't claim to be an expert nor to be certain about those
         | economic claims though, and would be interested in others'
         | thoughts here, particularly other books you found useful on the
         | subject.
        
           | toyg wrote:
           | _> particularly notable is that the biggest 10% of farms take
           | 90% of the subsidy_
           | 
           | This is the real problem.
           | 
           | I wish somebody would come up with a simple mechanism to stop
           | all subsidies to companies over a certain size. Yes, it will
           | be gamed, but it's still better than the outright crony-
           | capitalism we have today.
        
             | tastyfreeze wrote:
             | Just stop subsidies altogether. Subsidies distort the
             | market and encourage farmers to grow crops the market
             | doesnt actually want.
        
               | willvarfar wrote:
               | Subsidies can be about ensuring crops are produced in-
               | country instead of imported from cheaper countries. This
               | is not the same as saying there is no market for the
               | produce.
        
               | simonh wrote:
               | Who cares where it's produced? If farmers in a developing
               | country can get off aid and earn a living, good for them.
               | I do care how it's produced.
        
               | azinman2 wrote:
               | So many reasons why this is bad, but the most obvious
               | reason right now is the supply chain crisis. It's one
               | thing if you can't get a new car. It's another if you
               | can't get new food.
        
               | AussieWog93 wrote:
               | Relying on imports for food makes your country a sitting
               | duck in times of war. All the enemy needs to do is
               | blockade you and then you can be starved into submission.
        
               | PeterisP wrote:
               | There are two main aspects.
               | 
               | One is long-term food security - even if global trade is
               | mostly fine right now despite the current hiccups,
               | there's no telling how it's going to be in a decade or
               | two, and it's hard to ramp up production (due to lack of
               | skillset, machinery and infrastructure) if you suddenly
               | need it; so it makes all sense to pay some fraction of a
               | percent of your GDP to ensure long-term strategic
               | security of your food supply, especially if it looks like
               | global tensions will eventually rise due to climate
               | change.
               | 
               | The second aspect is that even in the current
               | circumstances we're seeing rapid urbanization and
               | depopulation of the countryside, which is generally seen
               | as a problem for many areas. In a "natural" regime
               | without rural subsidies this would happen even faster.
        
               | treeman79 wrote:
               | Tariffs are an option
        
               | cgio wrote:
               | If the demand is unelastic, stopping subsidies or
               | introducing tariffs will increase prices ending up with
               | the consumer and most probably hitting the poorest people
               | worse. From that perspective, billions shopped to mega
               | corps could be an ironically capitalist way to socialist
               | means. Better ways perhaps to achieve the same but don't
               | know if they would align with a capitalist worldview,
               | e.g. socialise the production, or cap profitability etc.
        
               | BoorishBears wrote:
               | We already provide food assistance to our poorest, we
               | could always redirect those subsidies directly to poor
               | families
        
               | etempleton wrote:
               | The problem is that the whole farming industry is proped
               | up on subsidies and if you ended it tomorrow almost every
               | small to medium farm would fold and get bought by a large
               | farm or sold to build a housing development.
        
               | AnthonyMouse wrote:
               | That isn't consistent with 10% of the farms taking 90% of
               | the subsidy.
               | 
               | The subsidy argument is a scam anyway. It's a commodity
               | market. The margins will be razor thin, the end. If you
               | subsidize production, prices go down. It will eat the
               | whole subsidy and leave the margins razor thin.
               | 
               | The only way the subsidy helps you is if you get more of
               | it than your competitors. Now who do you think that
               | applies to, the family farm or the huge corporation with
               | lots of lobbyists?
        
               | ars wrote:
               | If 10% of them grow 90% of the food then it's completely
               | consistent.
               | 
               | Your misunderstanding is that a subsidy is not aimed at
               | one US farm versus another, it's US farms versus foreign
               | farms.
               | 
               | The reason should be pretty obvious, without the
               | subsidies they would be no US farms. And then in time of
               | war there would be trouble.
               | 
               | There are a huge number of US industries that exist only
               | to make sure that US capacity will remain even in time of
               | war.
               | 
               | The same goal could be accomplished with tariffs, but
               | then the price of food would be higher.
        
               | AnthonyMouse wrote:
               | > If 10% of them grow 90% of the food then it's
               | completely consistent.
               | 
               | The claim implied that the small farms get _more_ of the
               | subsidy, i.e. that they would be the ones wiped out
               | without it.
               | 
               | > The reason should be pretty obvious, without the
               | subsidies they would be no US farms.
               | 
               | Why would there be no US farms? Real estate in San
               | Francisco is much more expensive than it is in Mexico
               | City or the like, but farmland in Oklahoma is not
               | uncompetitive with farmland outside of the US.
               | 
               | If this was the real reason then the subsidies wouldn't
               | be suspiciously concentrated at the location of Iowa
               | caucuses.
        
               | klyrs wrote:
               | Lower food prices are good for the consumer. Exclusively
               | focusing on the supply side is a mistake.
        
               | AnthonyMouse wrote:
               | The consumer is the one paying the taxes that fund the
               | subsidies. That isn't helping them.
        
               | theptip wrote:
               | I get the general point you're making, but in a
               | progressive tax regime like the US, the poor (who benefit
               | most from lower food prices) are paying proportionately
               | less of their income as tax than the rich, so this is
               | helping them. Many US families paid no tax in 2020 due to
               | tax credits, so they won't pay for the subsidies.
               | 
               | I would definitely argue that there are simpler ways of
               | helping low-income families to afford food though, if
               | that is your goal... just lower their taxes further, or
               | give them negative tax / UBI if they are already paying
               | no taxes, rather than adding lots of complex gears to
               | distort the economy to try and affect the same outcome.
               | Or more food stamps if you don't like the idea of poor
               | people spending their tax rebate dollars on non-food
               | items that they prefer.
        
               | AnthonyMouse wrote:
               | > I get the general point you're making, but in a
               | progressive tax regime like the US, the poor (who benefit
               | most from lower food prices) are paying proportionately
               | less of their income as tax than the rich, so this is
               | helping them.
               | 
               | That's assuming that you would lower taxes uniformly
               | instead of e.g. lowering them for the lowest tax bracket,
               | which is in no way required.
        
             | hn_version_0023 wrote:
             | I'd say that this is _a_ real problem, but there's a larger
             | issue: _lying_ -- which includes not just outright
             | falsehoods, but _the spin applied to facts to make them
             | more widely palatable_.
             | 
             | When I look into nearly anything I find some distortion of
             | the truth in service of profits.
             | 
             | The problem is that we're entirely comfortable with lying,
             | and have done so much of it the truth of everything is
             | obscured by the spin. This I feel is at the heart of what
             | ails the USA and the world.
             | 
             | As a European friend told me once over beers: _"All you
             | Americans are always selling something, and doing it badly,
             | by lying until you get the sale"_
        
           | jml7c5 wrote:
           | >particularly notable is that the biggest 10% of farms take
           | 90% of the subsidy
           | 
           | How much crop production do the biggest 10% of farms
           | represent?
        
             | theptip wrote:
             | It's a good question, and I don't have the answer. Here's a
             | reasonable jumping-off point that I've started
             | investigating: https://www.cato.org/commentary/examining-
             | americas-farm-subs...
             | 
             | And here's a more detailed NBER paper digging into
             | distribution of subsidies:
             | https://www.nber.org/papers/w16693
             | 
             | My general impression so far is that the subsidies are not
             | being disbursed pro-rata to production rates, and larger
             | farms (having more legal resources) are much more able to
             | capture these subsidies; for example with exotic ownership
             | structures of lots of subsidiaries, to maximize the capture
             | of subsidies. These financial/legal engineering strategies
             | simply aren't available to smallholders. It's the same sort
             | of incentive structure that produces outcomes like the
             | biggest companies paying the lowest tax rates.
             | 
             | Also, correction, I believe I have mis-quoted the stats off
             | the top of my head -- the Cato article suggests it's more
             | like 80% of subsidies to the top 10%. The general point
             | still stands.
        
               | SilasX wrote:
               | >It's a good question, and I don't have the answer.
               | 
               | It's really the kind of thing you want to resolve
               | _before_ spreading a statistic like that.
        
           | shalmanese wrote:
           | > I did some digging and the farm subsidies in the US are
           | truly eye-watering, and particularly notable is that the
           | biggest 10% of farms take 90% of the subsidy
           | 
           | Well, yeah. The 90th percentile farm makes $7665 in farm
           | income per year [1] so how much subsidies could they possibly
           | absorb?
           | 
           | "Farms" in the US are overwhelmingly used as a tax avoidance
           | strategy. Only a numerical minority of farms are actually
           | designed to grow food.
           | 
           | [1] https://aei.ag/2019/02/25/what-is-median-farm-income/
        
         | akudha wrote:
         | Isn't this generally true in other industries too? Small cafes
         | can't compete with Starbucks, there are no mom and pop
         | pharmacies, small grocery stores can't compete with huge/ugly
         | chains...
         | 
         | At this rate, the entire planet will be ruled by a few dozen
         | mega corporations. This sucks, but I don't know what can be
         | done to mitigate the situation.
        
           | Beaver117 wrote:
           | Well, shoplifting and other petty theft has been increasing
        
           | otikik wrote:
           | > I don't know what can be done to mitigate the situation.
           | 
           | Something about the means of production, perhaps.
        
           | chillingeffect wrote:
           | (Most of) us don't have to work for them and (most of) us
           | don't have to buy from them. If we mindfully shop looking at
           | the big picture, we can support smaller operations.
        
             | akudha wrote:
             | When I lived in NY (upper east side) there were multiple
             | pharmacies within walking distance. Nearly every corner had
             | Starbucks (I used to give directions using Starbucks - not
             | making this up).
             | 
             | Number of small cafes or pharmacies within walking
             | distance? Big fat zero. This situation will happen first in
             | big cities, then proceed to smaller areas too (as long as
             | there is profit).
             | 
             | I was looking for an apartment. Guess what? Multiple
             | buildings in the area I looked at, owned by the same
             | company.
             | 
             | Consolidation is not new. But the scale at which it is
             | happening is, and it is terrifying.
             | 
             | Just 4 companies control 80% of American meat supply, for
             | example.
        
         | [deleted]
        
         | im3w1l wrote:
         | Why can't the family farmers share a pool of highly efficient
         | tractors?
        
           | AlotOfReading wrote:
           | Excepting unusual conditions, most nearby farmers needing the
           | same equipment will need it at similar times. You can get
           | around this by transporting machinery long distances as
           | migrant workers do to hit multiple harvests in various parts
           | of the country, but that gets expensive.
        
             | im3w1l wrote:
             | Well big ag was supposedly able to solve it right? Vertical
             | integration helps coordinate I suppose, but I don't see how
             | it should be impossible without.
        
           | foepys wrote:
           | In Germany you can rent equipment and operators for this
           | equipment. A lot of farmers do it for crops they don't
           | usually harvest but are required to to keep the land fertile
           | or to collect subsidies.
           | 
           | The problem with this model is that, as the sibling comment
           | already pointed out, harvest is done typically within one or
           | two weeks or even in two days, depending on the weather.
           | Harvesting too late can make the crop go bad. So renting the
           | equipment and getting it to the field can be a hassle. It's
           | still being done a lot but it's not risk free.
        
             | sjwalter wrote:
             | This situation has interesting second-order effects as
             | well. Most "custom harvesters" require farmers to schedule
             | their combine/truck well ahead of time, giving them little
             | leeway in which specific dates they can harvest their crop.
             | So instead of for instance letting the corn dry out in the
             | sun, they'll spray an assload of glyphosate on it to cause
             | it to dessicate to ensure it'll be at the right moisture
             | level right when their custom harvester shows up.
        
         | nanomonkey wrote:
         | There is a third option, often called "Market Gardener", where
         | a tractor is not used because it is a waste of space and
         | resources. Tractors require a lot of extra turn around space,
         | and area for the wheels to travel that can be utilized for
         | planting. Instead rows are built at 3 ft wide and perhaps 60 ft
         | long to utilize human scale planting and weeding techniques. In
         | this case the soil is not tilled, but instead allowed to build
         | up. Covers are used to suppress weeds when the row is not in
         | use. Rows are more easily rotated with cover crops or nitrogen
         | fixating plants to improve the soil nutrients. These are of
         | course smaller family farms 1-10 acres.
        
         | structural wrote:
         | This is absolutely true. A related trend is that many family-
         | owned farms are no longer operated by the family: they own the
         | land and lease the farming rights to an industrial-scale
         | operation. The difference in efficiency means that the large
         | operator can pay almost as much for the lease as the individual
         | farming family would realize in profit if they worked the land
         | themselves and still have a viable business.
        
           | [deleted]
        
         | foxhop wrote:
         | It's not impossible, you are thinking from the wrong paradigm.
         | The industry is already shifting if you pay attention to the
         | proper news sources. The chemical agriculture war on pests and
         | nature is coming to an end. These chemicals are making us sick,
         | these monoculture are collapsing the ecosystem globally.
         | 
         | The good news is nature abhors a vacuum and will heal if we let
         | it. The wu Wei. Small farms will rise, food is just too
         | important for the economy and with rapid inflation there is no
         | way around it. We are all going to have to become farmers or
         | know our farmers.
         | 
         | Ref: https://m.youtube.com/channel/UC1eySW_9TiI5wnvTnIIw2Nw
        
         | h2odragon wrote:
         | Well observed. My experiences include a lot of farms that
         | operated with big yards of scrap iron; were always repairing /
         | rebuilding something, and did contract construction work to
         | keep the machines running when they weren't using them for
         | their own concerns.
         | 
         | There's very few operations running that way anymore, the "odd
         | construction contract" market for them dried up before and
         | faster than the farming side of those operations. USDA Soil
         | Conservation flood control projects used to be a large source
         | of work there.
        
         | cmroanirgo wrote:
         | I live on my family farm. We have a 50yr old tractor and your
         | basic premise seems correct. All of my neighbors follow the
         | same route.
         | 
         | I would add that small farmers are typically _not_ mono
         | culture. We used to have various fruit varieties. One neighbor
         | is mixed veggies, another cattle and flowers.
         | 
         | Our farm has been forced out of fruit because of corporate mono
         | farms who inevitably cause gluts in the market due to over
         | supply. In my local experience, corporate farms are typically
         | 5-10 bigger as a _minimum_ than their surrounding neighbors.
         | 
         | When a small farmer loses _any_ percentage income, he must
         | quickly change income stream. Hence, our fruit trees are gone,
         | and we 're now raising sheep, and are forced to be double
         | income. Our tractor & other super reliable (but very clunky)
         | machines remain.
        
           | oopsyDoodl wrote:
           | I think it's great.
           | 
           | It's the story of humanity moving on from "I am my own
           | industrial island" to inclusive effort at scale to automate
           | away and normalize often dangerous logistical work (I am 41
           | and have limbless, digit less peers who had to work on family
           | farms as teens.)
           | 
           | Family farms are, to me, simply a legacy social and technical
           | effort.
           | 
           | The problem is old politics refusing to take reality
           | seriously. Americans who carry on about their legacy of
           | revolution, moving history forward, disruption!, exporting
           | that mentality to the world, are all sad their lives are
           | disrupted by others wanting the same agency.
           | 
           | Moral relativism worked for Americans while we bombed the
           | world, impeding other nations progress, but they caught up
           | anyway.
           | 
           | "There's a warning sign on the road ahead; a lot of people
           | saying we'd be better off dead. Don't feel like Satan; but I
           | am to them; so I try and forget it any way I can."
           | 
           | If you didn't sign a contract to be a family farmer for life,
           | oh well. America.
        
       | bunabhucan wrote:
       | https://archive.ph/8ZKDl
        
       | SQL2219 wrote:
       | Coupled with right to repair issues, farmers are really in a bad
       | spot.
        
         | ren_engineer wrote:
         | problem is that many of the corporate farms are owned by hedge
         | funds who are also invested in BigAg companies, so they don't
         | really care about right to repair. Hedge funds are also jacking
         | up land prices because they have access to near zero interest
         | loans for land
        
           | shmageggy wrote:
           | Got any links where we can read about this? Shit like this is
           | the root of all evil
        
             | noefingway wrote:
             | https://thecounter.org/who-really-owns-american-farmland
             | https://www.motherjones.com/food/2021/05/bill-melinda-
             | gates-...
             | 
             | where I farm our (60 miles from DC and Baltimore) not very
             | productive red clay is going for top dollar and not to
             | farmers. Not necessarily hedge funds, but high income
             | earners buying up property for investment.
        
               | etempleton wrote:
               | I am familiar with this area and soil type and I am
               | always shocked farming is viable at all. Most grass
               | doesn't even seem to grow well unless you put a heavy
               | layer of topsoil down.
        
           | loonster wrote:
           | Sounds very similar to McDonald's Ice Cream machines.
        
         | toomuchtodo wrote:
         | Farmers need a coop that designs and builds farm equipment to
         | avoid legacy manufacturer rent seeking.
         | 
         | Edit: open source hardware design and fabrication should be a
         | part of 4-H programs, lots of overlap with maker/hacker spaces
         | imho
        
           | tomc1985 wrote:
           | Would it be possible to source designs from expired patents?
        
             | toomuchtodo wrote:
             | Can't see why not. I'd also imagine patenting new
             | technology and allowing open access would also be possible.
        
           | myself248 wrote:
           | I got tapped by 4H to judge a computers/electronics design
           | event a few years ago. My background is in hackerspaces and
           | OSHW, and the overlap with what the kids were building was
           | staggering.
           | 
           | It's been a while and I'm curious what they're up to lately.
        
           | daniel-cussen wrote:
           | Buy tractors from Belarus. They are nearly completely analog.
           | What few plastic parts there are haven't been minimized. And
           | if it's anything like it used to be in the Soviet Union, you
           | get instructions on how to make the replacement parts
           | yourself in the manual.
        
             | wwweston wrote:
             | Where can I learn more about the soviet culture around
             | industrial equipment that you're describing?
        
               | daniel-cussen wrote:
               | I talked to people who emigrated to Cuba for around a
               | decade. And it's not comfortable equipment, like it's
               | lacking all kinds of "features" that American equipment
               | has, and that are actually nice, but that never got
               | incorporated into the design. So I'm reading up about it
               | but remote controls were never a big thing, it was not
               | like in America where they were an obvious part of the
               | television, in the Bloc you had to manipulate the knobs
               | mounted on the device, and that meant getting up every
               | time. It was all about the basic bottom line
               | functionality.
               | 
               | So I hear that in Cuba the Soviet air conditioning is
               | basic and brutal, for better and for worse. Apparently
               | most Soviet electronics sacrifice efficiency (energy
               | efficiency, and light weight, and economizing materials)
               | for effectiveness. There is a reason for this: under
               | Socialism, capital goods were always short, but they had
               | to be available. Demanding an air conditioning was
               | basically done as a political favor, and the economics
               | weren't good. Therefore what the factory wanted, really
               | really wanted, was for the customer to take his air
               | conditioning or tractor and never come back. No planned
               | obsolescence, repeat customers were the bane of their
               | existence. So they made them last.
        
           | pessimizer wrote:
           | I'm pretty sure 4-H relies on corporate sponsors.
        
       | throwawaymanbot wrote:
       | If ever there was a rebuttal of a business model... share holders
       | should pay attention.
        
       | h2odragon wrote:
       | Old iron is better built, less "electronic", and far easier to
       | understand the designs and fabricate parts yourself. As well as
       | cheaper to purchase.
       | 
       | Folks I worked with in the 80s were using Michigan dirt moving
       | equipment from the 60s [1], and a quick look shows there's still
       | similar machines being traded [2].
       | 
       | The market for tractors is far bigger than specialized
       | construction equipment, but all the same factors apply. The
       | bigger units, say 75HP and up, counted as "construction
       | equipment" for us, certainly. Today's farms are bigger and
       | today's farmers have little need for smaller machines.
       | 
       | [1] https://www.constructionequipment.com/michigan-elevating-
       | scr...
       | 
       | [2] https://www.machinerytrader.com/listings/for-
       | sale/michigan/s...
        
         | jasode wrote:
         | _> Old iron is better built, less "electronic", and far easier
         | to understand the designs and fabricate parts yourself. As well
         | as cheaper to purchase._
         | 
         | I thought that big farms take advantage of newer tech on
         | tractors using GPS RTK for sub-inch accuracy and increased
         | productivity? Therefore, depending on the workload, the
         | decades-old "cheaper" tractor can turn out to be more costly
         | because the farm's yield isn't keeping up with competitors. It
         | seems like a tradeoff between old & new.
        
           | julianlam wrote:
           | I believe the argument is that these new tractors are not
           | repairable by yourself, leading to expensive repair and / or
           | replacement cost
        
             | jaclaz wrote:
             | At least on construction equipment (agricolture may be
             | different) the point is not only about costs (and
             | frequence) of repairs, but rather on machinery down time or
             | production loss.
             | 
             | I have managed in the past some high production sites (road
             | tunnels) with a specific sequence of operations and having
             | a jumbo or a wheel loader or an excavator down meant severe
             | delays not only in excavation, but on all the following
             | works (concrete pouring, impermeabilization) and on all the
             | "ancillary" works (ventilation, electric cabins moving,
             | etc.).
             | 
             | One of the machine at the excavation front broken for more
             | than a few hours would have meant literally days of delays,
             | complex scheduling modifications, etc., a total mess.
        
             | jasode wrote:
             | _> the argument is that these new tractors are not
             | repairable by yourself, leading to expensive repair_
             | 
             | Correct, but the tradeoff calculation includes offsetting
             | the expensive repair costs _with potential increased
             | productivity_. Or likewise with the other option, the
             | "savings" from cheap low-tech tractors may be negated by
             | _lower productivity_.
        
               | PeterisP wrote:
               | Things will break. Costs isn't everything, time to fix
               | matters. An older tractor can usually be repaired on the
               | same day on-site, causing a few hours of downtime; a
               | newer tractor that will be returned from service in a
               | week causes a _huge_ loss of productivity.
        
               | zinekeller wrote:
               | That might be justifiable if the service network is
               | basically as fast as a DIY repair, however from what I
               | read it is still treated to be a week-long turnover which
               | might be fine for a low-stake consumer device but a
               | downtime here means that net productivity will be lower
               | than having less efficient but easily repairable
               | machines.
        
           | ThemalSpan wrote:
           | You can retrofit gps control systems onto older machines.
        
             | jasode wrote:
             | _> You can retrofit gps control systems onto older
             | machines._
             | 
             | The highest precision accuracy of RTK devices has vendor-
             | proprietary encrypted signals. E.g: https://www.google.com/
             | search?q=rtk+signal+encrypted+gps+%22...
             | 
             | So it seems like retrofitting for "precision ag" also
             | depends on what commercial "RTK network" is offered in the
             | farmer's local area. I think regular GPS is only ~10 ft
             | accuracy so not sure of farmers are retrofitting tractor
             | steering for that lower resolution.
        
               | myself248 wrote:
               | Yeah but you don't need commercial services to get down
               | to the inch anymore. Running your own base station has
               | gotten cheap and easy; witness Sparkfun selling their RTK
               | Express kit like hotcakes.
               | 
               | Integrating it into the vehicle is a fun second ROS
               | project for someone who already built a toy robot car.
               | There's a substantial population of highschoolers
               | building the necessary skills, the trick is just to
               | connect them to the jobs.
        
               | mcculley wrote:
               | >I think regular GPS is only ~10 ft accuracy
               | 
               | This has not been true for quite a while. The equipment
               | used on surveying, farming, and construction equipment is
               | much more accurate thanks to the availability of multiple
               | GNSSs (e.g., GPS, GLONASS, Galileo, BeiDou) and
               | terrestrial base stations to remove error (WAAS, DGPS).
               | 
               | See:
               | https://www.gps.gov/systems/gps/performance/accuracy/
        
               | snovv_crash wrote:
               | New 'dual-band' GPS systems have 30cm / 1ft accuracy
               | without any basestation requirements. The chips cost $250
               | instead of $10, and they require different antennas, but
               | 1ft is at a point where dropping further IMO has limited
               | gains.
        
               | rdtwo wrote:
               | If you add a serveyed ground station you should be able
               | to do way better than that
        
           | bryanrasmussen wrote:
           | well that sounds like marketing, which sometimes marketing
           | can be correct, and sometimes it can be a bunch of BS. I
           | don't know which is the case here but my hunch would be that
           | if it were correct then old iron wouldn't be worth more than
           | new to the people who would be best suited to know if it were
           | BS or not.
           | 
           | There at any rate seems to be a discrepancy between what is
           | supposed to be the case, and what people who should know seem
           | to believe is the case.
        
             | jasode wrote:
             | _> sometimes marketing can be correct, and sometimes it can
             | be a bunch of BS. I don't know which is the case here but
             | my hunch would be that if it were correct then old iron
             | wouldn't be worth more than new to the people who would be
             | best suited to know if it were BS or not._
             | 
             | I don't know if the auctions bidding wars are driven up by
             | homeowners managing their small homestead farm or by bigger
             | commercial operations. Homeowners don't need to compete so
             | buying 30-year old tractors is an easier decision.
             | 
             | I agree that using old tech can be an _counterintuitive_
             | cost-saving strategy -- like FedEx deliberately using a
             | fleet of very old planes that are gas guzzlers instead of
             | buying the latest jets that are more fuel-efficient. Maybe
             | some big commercial farms deliberately buy used low-tech
             | tractors. When I drive around, all the big operations seem
             | to use the newest tractors. They seem to always trade up
             | instead of down. But maybe the latest John Deere  "lock in"
             | and repair costs will make them reverse that buying
             | pattern.
        
         | fy20 wrote:
         | In my (post-Soviet) country it's still quite common to see
         | Kamaz construction equipment (actual construction, e.g. light-
         | weight cranes) from the 80s and 90s being used.
         | 
         | It's not that new equipment is not affordable (if something
         | needs a 100t Liebherr crane, it'll come), but all the emissions
         | equipment on new vehicles is a lot more expensive to maintain,
         | so it's simpler and cheaper to keep old vehicles running.
        
         | universa1 wrote:
         | Hmm, early 90s "we" already had about 180hp... Nowadays more
         | like 300 to 400 for a tractor, and more for caterpillar like
         | stuff... With the electronics obviously being a double edged
         | sword... You kinda need them to efficiently use those big
         | machines...
         | 
         | The smaller stuff is still around, but from my experience
         | mostly for "hobby" farmers in Germany :-)
        
         | LgWoodenBadger wrote:
         | From the heavy equipment operators I watch, a lot of them have
         | an extreme dislike for DEF and the regen cycles that all modern
         | diesels over 25hp (iirc) require.
        
           | dboreham wrote:
           | Yes "emissions" engines have a reputation for unreliability
           | and costly maintenance.
        
       | SQL2219 wrote:
       | Lamborghini still makes tractors https://www.lamborghini-
       | tractors.com/it-it/
        
       | ilamont wrote:
       | If right-to-repair and ease of maintenance are such huge issues
       | for farmers, why doesn't some up-and-coming manufacturer fill
       | this niche?
        
         | structural wrote:
         | They do! They make parts for old tractors (really, old tractor
         | chassis once everything else has been replaced a few times).
         | 
         | As far as why doesn't a new tractor manufacturer start up, they
         | have to compete with a few things: first, the market for old
         | tractors and parts (if they are repairable basically forever
         | and the amount of land used by agriculture isn't changing, this
         | is not a growth market). Worse, it's much more difficult to
         | design a small engine for sale that is both reliable and will
         | pass current environmental regulations. This is a major barrier
         | to entry that didn't exist decades ago.
         | 
         | So if you're a startup in the ag space, it makes eminently more
         | sense to make small parts for someone else's platform, which is
         | why you see companies doing things like deploying GPS, cameras,
         | lidar, datalogging systems. There, the market opportunity is
         | "all tractors could benefit from this", the competition is
         | initially "other small companies", the exit strategy is "get
         | purchased by a large manufacturer who would rather buy than
         | develop the tech themselves", and the regulatory environment is
         | much more friendly.
        
           | R0b0t1 wrote:
           | Does farm equipment need to pass environmental regulations? I
           | didn't think it did. If it does I doubt there will ever be a
           | startup in this area.
        
             | mschuster91 wrote:
             | Most farm equipment will be driven on roads, so yes, it
             | will have to comply with emission regulations.
        
               | R0b0t1 wrote:
               | That's neither necessary or sufficient -- farm equipment
               | is given passes for most car requirements and I know does
               | not strictly meet existing EPA regs, but I am unsure if
               | it has absolutely no regs or not.
        
         | Osiris wrote:
         | 1. Capital requirements 2. Patents
        
           | [deleted]
        
       | giantg2 wrote:
       | There will be a lot of demand for less electronic cars too. Once
       | the mandatory intoxication and automatic braking takes effect in
       | 2026, demand for older cars will go up.
        
       | errcorrectcode wrote:
       | Belarus has problems right now, but US farmers on the side of R2R
       | have been buying old John Deere tractors as in the article and
       | modern ones from more repairable vendors like Minsk Tractor
       | Works.
        
       | michaelcampbell wrote:
       | If I'm reading the graph right, this is about the same prices as
       | 2008-2013?
       | 
       | So although the prices have been lower between then and now, it's
       | suddenly a crisis when prices are what they were 7-12 years ago?
        
       | [deleted]
        
       | gremloni wrote:
       | Mahindra tractors from India are used all over the Midwest. I can
       | see why- they're solid but can still be fixed by a farmer.
        
         | tomc1985 wrote:
         | Interesting... I remember encountering Mahindra vehicles in
         | South America and wondered why I they didn't seem to be in the
         | 'States at all
        
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