Sponsored Content: SCHEELS

DELAYS IN MANUFACTURING OF NEW EQUIPMENT INCREASES DEMAND FOR USED

ccording to the Association of Equipment Manufacturers report, 166,512 new tractors were sold from January through June 2021, a 16.7% increase from the same months last year. Sales of new combines increased 11% to 2,276 over the same period. The heightened interest in new agricultural equipment has placed added strain on a supply chain that is currently dealing with other challenges. The high demand for farm equipment and issues in the supply chain have made it hard for dealers across the nation to keep their lots stocked. Orders for new equipment from several companies are taking months to fill, causing the demand for used equipment to drastically increase. Due to this increase in demand, Steffes Group continues to find new highs in low-houred, wellmaintained equipment sold at auction.

Manufacturers are seeing shortages of key elements

Manufacturers are scrambling to keep up with the increase in demand due to disruptions along their supply chains that have left them with shortages of everything from steel to plastics, tires, semiconductors, labor, and transportation. Almost every piece of new farm equipment has become increasingly computerized in recent years, so semiconductors have become an essential part of their systems. The shortage of semiconductors may impact all aspects of agriculture for the next two years and beyond. This shortage is forcing farmers to plan ahead, as new equipment orders are taking months to fill. To increase the production of farm equipment to adequately meet demand, equipment companies also need a sufficient supply of workers. Companies across the country are struggling to find skilled and unskilled labor including mechanics, diesel mechanics, welders, and some factory line workers, adding to the delay in the manufacturing of requested machines. The final struggle that equipment companies currently face is transportation. Not only of materials to the factories, but transportation of completed machines to dealerships. But transportation, whether by ocean freight, air freight, or trucking, is something equipment companies have to compete for within the industry and outside of it. When combined with the enhanced demand, these issues create a complex situation where equipment manufacturers struggle to get enough implements to dealerships to sell to the increased number of buyers, forcing buyers to look at the alternative – purchasing used equipment.

Used equipment finds new highs

After years of less than favorable commodity prices beginning in the fall of 2014, and corresponding high inventories of farm equipment on dealers’ lots, commodity prices took off in the fall of 2020 and haven’t stopped. Combined with low interest rates, farmers across the United States are flush with cash with the help of the Coronavirus Food Assistance Program (CFAP) and are searching for farm machinery in preparation for this year’s harvest. However, the supply and demand of wellmaintained used equipment is beginning to reflect the new equipment business, making farmers turn to auctions to fill their equipment needs. On one recent Steffes Auction, a 2013 Case-IH Steiger 600 Quadtrac sold for an incredible $307,000, the highest price seen in over eight years. The effects of the manufacturing delays extend beyond the agriculture market. From trucks to trailers, construction equipment, and vehicles, month to year-long waits are not uncommon. In late May, a 2020 Ford F250 with 28,171 miles sold for $66,500 on a Steffes Auction, simply because they are nearly impossible to find sitting on dealership lots. These shortages are predicted to last a minimum of 18 to 24 months. If you want to take advantage of the increased demand we are seeing for used equipment, contact any of our sales representatives to discuss your options of selling with Steffes today.

Paul Ellefson

Customer and Farmer

Levi Otis

Co-Founder

TRIED AND TRUE

A Q&A Testimonial with QR Posts Co-Founder Levi Otis and customer Paul Ellefson

As QR Posts continues to gain a lot of traction with its innovative technologies, features, and benefits, we wanted to take an inside look at just how easy the signup process is, how you can get started, as well as a Q&A testimonial. We sat down with QR Posts Co-Founder Levi Otis and customer and farmer Paul Ellefson.

Q: How did you discover QR Posts?

Paul: I knew (Levi) already, and he told me about (QR Posts), and I honestly thought it was a great idea. As a landowner, it's always frustrating to me to be posting your land constantly, rather than having someone else help regulate it.

Q: Can hunters sign up for time slots?

Levi: In development, there is the ability to change your farm to have multiple hunters book per day. Currently, it is firstcome-first-serve, and you can book access ahead of time. Another feature request we've had is if someone checks out early, it opens up for someone else to hunt later that evening.

Q: Before QR Posts, How did you keep track of communication with hunters?

Paul: Often we would have a family that likes to hunt, and it would get in the way with out-of-state hunters; it's just kind of a mess. Another issue is hunters parking where you're trying to work–so QR Posts is really handy.

Q: Does one have the ability to set directions and guidelines for hunters when they sign up?

Levi: Yes–no one knows Paul's field better than he does. Anything he wants [hunters] to follow, he can put in there.

Q: What were some of the biggest headaches you had to deal with before using QR Posts?

Paul: We usually identify or refer to the land by whom we bought it from (e.g. Steve's field), whereas out-of-state hunters aren't familiar with names, and are more likely to use street names (e.g. 40th ave sw). Most of our streets aren't actually marked, so I may not know what specific location the hunter is referring to.

Q: What benefit of QR Posts are you most enjoying?

Paul: I can stay organized, and not have to worry about anything when I'm busy. They can just scan the sign and it's all done.

Q: Can hunters see when land is off-limits for the season, due to something like harvest?

Levi: We're working on the mapping feature now, where you can see the land before you even drive out there. Currently, We do have the ability to set restrictions and specifications for each plot of posted land (e.g. you can hunt waterfowl here, but no deer). These specifications can be updated or changed at any time.

Q: Can I view who is on my posted land at any time?

Levi: Yes–as a landowner you can view who is on which land at any point in time. Another feature we are working on is the ability to rate hunters, and attach notes.

Q: If some of our readers are considering signing up for QR Posts, what would you like them to know?

Paul: I'd recommend getting the permanent sign option (Qr Posts also offers a temporary sign option). You just fill out the form, put up the signs, and you're good to go.

HOW IT WORKS

QR Posts makes it easy for you to manage who is accessing your land

Enter some basic details about the land you are posting. Customize and print your posted signs, then post your land.

Each posted sign has a QR code, when someone wants to access your land they scan the code with their phone. They are brought to your personal request form, and they fill out their information.

You are sent a notification to approve or decline. You can also let us handle it and automate this process.

If you set up payments, they will pay with a credit card once approved.

That's it! If you require payment, we deposit the funds in your account on a daily basis.

To get started, visit qrposts.com