North American farm equipment dealers are still cautious when it comes to projecting sales growth for all of 2017. At the same time, some dealers are seeing signs that sales trends are improving.
Deere & Co., best known for its dominance in farm equipment industry, made a big and unexpected move on June 1 when it announced it would be expanding the reach of its Construction & Forestry division by acquiring the German construction equipment maker Wirtgen Group. Most industry analysts covering the heavy equipment market agree that the acquisition represented a major strategic acquisition that will strengthen the company’s equipment operations on several fronts.
A few weeks ago in this space (May 29 to be exact) dealers were asked via online survey if they were feeling pressure from their major line suppliers to order more new equipment than they wanted to order. More than 170 dealers took us up on our invitation to participate.
During the last few years, dealers have been extremely conservative with their revenue growth projections for the precision farming segment of their businesses. This is a direct reflection of their customers’ more prudent purchasing habits.
Source: Deere & Co. Annual 10-K filed in December for FY ending October 2016
There’s little doubt that there fewer farm equipment dealers than there were a decade ago, but, in the case of John Deere dealer locations, the change isn’t as significant as you might think. The biggest reduction in Deere dealers has come in the retail locations handling the company’s turf equipment.
North American farm machinery dealers continue to report listless but stable sales trends. Through the first quarter of 2017, dealers say equipment sales were still in negative territory year-over-year, but improved compared to the last quarter of 2016.
Like farm equipment dealerships, nearly every segment of agriculture in the U.S. is being transformed by a consolidation of its participants, from farmers to ag equipment makers and input producers.
Rocky Mountain Dealerships (RME) and Cervus Equipment (CERV), two of Canada’s largest farm equipment dealership groups, issued first quarter earnings reports in the past week showing improved sales levels.
It’s not a secret or surprising that farmers first look at reducing or totally eliminating purchases of equipment when they need to cut costs. This reality was further reinforced by a recent survey of more than 500 farmers by Farm Journal Media and posted on its AgWeb.com website on April 7.
At the 2026 Farm Progress Show, Franklin Peitz, Digital Product Marketing Lead with John Deere Operations Center reassures growers that they have the right to their own data.
Since 1980, A&I Products has become a leading manufacturer and wholesale distributor of aftermarket replacement parts for the agricultural, turf, and industrial equipment markets. A&I Products' experience and expertise has greatly contributed to the company's reputation as a top supplier of quality, reasonably priced parts. Founded with roots as a small machine shop and repair facility, the company made the transition by manufacturing new parts to replace those that were identified as commonly needing repair. Throughout the 1980s, the company quickly garnered a reputation for offering quality parts at a reasonable price.
Built on 90 years of expertise, Yetter Farm Equipment leads the agriculture industry in designing effective and innovative equipment for residue management, seedbed preparation, precision fertilizer placement, harvest attachments, strip-tillage, and more.
At Machinery Scope, we believe you deserve the best risk management solutions for your investments in heavy equipment. Since 2013, we have been proud to offer extended warranty, appraisals, and inspections. Machinery Scope is a family-owned business built on our experience in farming and equipment dealerships. We understand your business and provide a personalized and professional level of customer service. Machinery Scope has built a strong warranty product with our customers in mind, offering the same professional level of service from the time you get a quote, through the processing of a claim.