Back

Farm Tractor Shortage Getting Worse by the Day (When Will It Ever End?)

Oct. 3 2021 Tractor Shortage By Team Tractor Ranch

Share

The tractor shortage is bad and getting worse.

There are no microchips available for tractors which means many factories are shutdown or limiting supplies.

And by the way --- another casualty is in the midst --- tractor batteries are now in low (or zero) supply in certain areas.

According to tractor expert Bryce Meehan, of Team Tractor Ranch, "We have seen available inventories for many tractor brands plummet to zero.  It's scary to think that soon we may have zero tractors and parts.  We are not months away --- we are weeks away."

Let's take a look at the chip shortage through the eyes of the auto industry, which sets the tone for all others.

Here's a great explanation... 

General Motors announced this week that it’s shutting down production of its main electric vehicle, the Chevy Bolt, through mid-October because of a shortage of batteries driven by the global shortage of semiconductor chips.



Marketplace has covered the chip shortage again and again and again.  But why exactly is there a chip shortage in the first place?

Shortages happen when the demand for something is higher than the supply.  When it comes to computer chips, there are problems on both sides of that equation.

First, in the pandemic, demand for chips went up.

“The consumption of chips has skyrocketed because more and more people are buying computers and various electronic devices as they’re stuck at home,” said Morris Cohen, who teaches operations and information management at The Wharton School.

Then, there’s a supply problem.  That’s because of natural disasters in at least three countries, according to Art Wheaton at Cornell University’s ILR School.

“So, one of the major chip suppliers in Japan had a fire.  Texas, for Intel, had a problem with the winter storms.  And in Taiwan, which is one of the largest producers in the world of these chips, they’re having a drought — and making computer chips requires lots of water, so they have been impacted,” Wheaton said.

Also, the companies that make chips haven’t been able to find enough workers.  Not to mention the shipping bottlenecks.

“A lot of them go through China as one of the major ports.  And they had a COVID outbreak, which stopped people from unloading and loading these container ships,” Wheaton said. “  And then when you get a backlog of those, it’s hard to unload them and get caught up, especially if you’re having a labor shortage.”

The bottom line is simple --- if you are in the market for a farm tractor and find one --- buy it now.  Also stock up on tractor batteries and other parts.  They will be in short or zero supply any time now.

If you need any further help or have any questions about the KIOTI CK Series, tractors, implements, or anything else equipment-related, please contact your dealer, local mechanic, or call us at 602-734-9944.  Please ask about our current new and used tractor supply.


If you are looking for old, vintage, classic, or new tractor parts, send us a part request.

Team Tractor Ranch - #1 Tractor Dealer in Arizona. We sell and service most major brands of tractors including Yanmar, Kubota, John Deere, TYM, Mahindra, Kioti, Case, New Holland, Massey Ferguson, Ford, Deutz, Case IH, Farmall, International Harvester, Branson Tractors, LS, Shibura, Claas Tractor, McCormick Tractors, Valtra, Solis, YTO, Montana, and Nortrac.