USDA is reporting that 86% of corn acres were planted as of May 22. This compares with 75% the previous week and 90% a year ago. It just slipped past the 5-year average of 85%.
Amid ongoing weakness in commodity prices, Midwest and Mid-South farm income and quality farmland values continued to decline during the first quarter of 2016, according to the latest Agricultural Finance Monitor published by the Federal Reserve Bank of St. Louis (8th District) on May 12.
As of May 15, three-quarters of U.S. corn acres are in the ground and a little over one-third of soybeans, according to USDA’s most recent Crop Progress report.
For the three months ended March 31, 2016, AgJunction reported revenue of $15.5 million, a 28% increase from $12.1 million in the first quarter of 2015. Total revenue in the Americas for the first quarter was $7.5 million, up 49% year-over-year due largely to additional sales resulting from the acquisition of Novariant.
Can U.S. farmers be profitable in 2016? The answer to that question could have a major impact on equipment sales to farmers and ranchers this year. As commodity prices continue to rise, it does appear that the fall harvest could generate a livable income for most farmers.
Net income for the company during the first quarter ended March 31, 2016, increased $0.6 million to $124.4 million. Net interest income increased to $140.6 million for the quarter.
The survey was established in the 1980s to analyze the financial picture of equipment dealerships in the U.S. and Canada. The survey compiles data from independent dealers who provide detailed financial and operational information for their individual businesses, which is compiled in a template that creates average income statements and balance sheets, in addition to key financial performance indicators.
On Monday, USDA reported that as of May 8 64% of U.S. corn acres had been planted. This compares with 45% the week before and 69% a year ago on this date. Corn planting so far this year is well above the 50% 5-year average.
How will farm equipment dealers grow their businesses in the near future? Sell more equipment? Acquire more locations? Offer more types of product, like compact construction equipment or specialized machinery? Diversify into other types of businesses?
In this episode of On the Record, brought to you by Associated Equipment Distributors, we look at President Trump's tariff reduction on ag equipment, the latest dealer sales forecasts, and how high input costs are keeping farmer sentiment down.
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.