North American large ag equipment retail sales fell in March, with 4WD tractor sales down 6.4% year-over-year, combine sales down 23.9% and row-crop tractor sales down 9.5%, according to the latest figures released by the Assn. of Equipment Manufacturers.
Net sales for the fourth quarter of 2013 were $165.6 million compared to net sales of $149.4 million for the fourth quarter of 2012, an increase of 11%.
In addition to monitoring the department sales mix, the equipment sales mix, and the new and used equipment turnover, dealers and sales managers should also vigorously monitor their new and used equipment gross margin.
In January, USDA once again lowered its 2013-14 outlook for farm cash receipts. The ag agency is now expecting cash receipts to decline by 14% in the year ahead. This is down from a 13% drop USDA projected in December.
Derek Gregorek doesn't have the typical story of how he got into the dealership business. He didn't grow up on a family farm, and he didn't spend his summers in high school sweeping up the shop of a local dealership. After about 10 years working in the insurance industry, he spent the next 3 or 4 years as Mr. Mom, as he puts it.
Corn prices got at least a reprieve from its 40% decline from a year ago on the news that USDA lowered ending stocks to 13.9 billion bushels, a drop of 64 million bushels from previous estimates.
Few will argue with the fact that the very generous depreciation rules for farm machinery introduced in 2008 have played a significant role in the protracted run of strong sales years for ag equipment dealers and manufacturers.
Bigger farm sprayers with wider booms continue to generate sales across the U.S. and European farmscape, but farmers and engineers in the nutrient and chemical application business are increasingly taking a serious look at "what comes out of the sprayer" and how best to maximize the effectiveness of that output.
After monitoring the overall wholegoods sales mix as a percent of total dealership sales, the next wholegoods metric that should be continually measured, monitored and managed is the new and used wholegoods sales mix as a percent of total wholegood sales.
In this episode of On the Record, brought to you by Associated Equipment Distributors, we take a look at the FTC and USDA’s announcement that they are seeking public comment on farm equipment manufacturing and distribution practices.
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