Wisconsin farmers could receive much less for their corn this year as a bountiful harvest and reduced demand for ethanol threaten to drive prices down to some of the lowest levels in more than three years.
In the face of volatile grain prices, uncertainty about depreciation rules, skepticism about a new farm bill and a lot of talk about farm equipment sales peaking, North American farm equipment dealers continue to see good potential for solid sales in 2014.
North American farm equipment dealers see solid sales through the end of this year, but are realistically expecting 2014 sales revenues next year to be about the same as 2013 or possibly somewhat lower.
Precision Farming Dealer is proud to sponsor its first-annual 'Award of Excellence' program to recognize North America's premier precision farming dealer. Dealers, manufacturers and others are invited to participate by nominating top precision farming dealers from across North America. There is no limit to the number of nominations that an individual can submit. We will not reveal to the dealers who nominated them for this award.
We received enough calls in the past week or so to know dealers and suppliers are gearing up for their annual exercise in forecasting and best estimates for planning for 2014.
North American farm equipment sales continued to rise in August, but the pace slowed somewhat compared to previous months, according to the latest figures from the Assn. of Equipment Manufacturers. Of more concern than the unit sales may be the building inventory of new machinery that has caught the attention of industry observers.
Despite posting hefty revenue gains through the second quarter and first half of its 2014 fiscal year, Titan Machinery cut its full-year outlook to $2.25-$2.45 billion from its earlier forecast of $2.35-$2.55 billion. Titan, whose biggest brand of ag and construction equipment is Case IH, has 109 locations in the U.S. and Eastern Europe.
Debt-to-asset and debt-to-equity ratios are traditional measures of the farm business sectors financial solvency. Based on forecasts of the value of farm business assets and debt, the sectors debt-to-asset ratio is expected to decline from an estimated 10.7 percent at the end of 2012 to 10.2 percent by the end of 2013.
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.