In today's newscast we look at what a record harvest could mean for equipment sales, news of the first gallons of commercial-scale cellulosic ethanol being produced, Art's Way's second quarter results and dealers report sales growth in 5 out of 11 regions.
If you were to only look at the unit sales numbers that the Assn. of Equipment Manufacturers makes available each month, you might that think that business for farm equipment dealers is looking pretty dismal at the moment. But as I've pointed out many times in the past, things almost always look bad when you compare them to the best years you've ever had.
If current crop progress and conditions hold, many industry observers are forecasting production of corn and soybeans will at least match last year's record harvest.
While market prices of corn and soybeans are lower at present than they have been in the past few years, they still produce the best return on a per acre basis than almost any of the other commodity crops, though rice and peanuts have been looking pretty good for the past year or two.
Farmers planted 84.8 million acres of soybeans, which was nearly 11 percent more than last year's 76.5 million acres. Among the states that planted record amounts of the crop were Michigan, Minnesota, Nebraska, New York, North Dakota, Ohio, Pennsylvania, South Dakota and Wisconsin.
In today's newscast we look at whether recent severe weather in Iowa and Nebraska will have any negative impact on crop yields and equipment sales, declining sales for irrigation companies, rising new and used equipment inventories and changes to crop insurance subsidies.
Besides commodity prices and the weather, the topic of land values has probably garnered the most attention from the ag community in recent years (though in recent months "Big Data" seems to be catching up). Of course, anyone who was around in the early 1980s has an instant knee-jerk reaction to almost any news of a slowdown or dropoff in farmland values.
Jay O'Neil, an instructor and specialist at the university's International Grains Program, says what happens with El Niño will affect worldwide crop production.
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.
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