New Pollution Technology Includes Higher Costs
High commodity prices mean farmers have the capital to invest in new equipment. John Deere stock is up 70 percent from its 2010 low and AgCo stock has nearly doubled. But Energy and Environment Daily is reporting that some farmers are being steered toward the used equipment market by EPA's Tier 4 air pollution standard. The agency forced all new, off-road diesel engines to produce fewer nitrous oxides. This is added cost to the tractors; just as consumers balked at low flush toilets and now energy efficient light bulbs, apparently some farmers have decided not to add the risk of the new air pollution technology to their portfolio.