Most farm equipment dealers will tell you that at least part of the surge in new equipment sales during the past few years was fueled by generous depreciation rules. Despite this, the February 2013 issue of USDA's Amber Waves suggests that it will be the larger farm operations that will be most affected by the upcoming changes to the rules.
Bankers have been telling me the strangest thing: credit standards for business are easing. Not by a whole lot, but they are definitely coming down. I've heard it enough, though, that the trend is clear.
Hemisphere GPS today reported financial results for the fourth quarter and year ended December 31, 2012. All currency amounts are expressed in U.S. dollars.
When you hear someone say that it's a good time to be in agriculture, you can take their word for it without question. Ag will always be cyclical; there will always be blips here and there. But if you examine ag's long term trends, you would be hard pressed to find another industry with such solid fundamentals.
The outlook for equipment dealers catering to the livestock segment of U.S. agriculture will gradually improve as 2013 progresses with projected prices for cattle, hogs, broilers and milk continuing to rise and, in some cases, hit record highs.
Cervus Equipment Corp., John Deere's only publicly traded farm equipment dealer group, reported last week that its net profit for the year increased by $6.5 million, or 35.6%, to $24.6 million for the year ended 2012 from $18.1 million in 2011.
The farm equipment industry is changing rapidly on a number of levels. Recognizing the changes and being prepared to tackle them are paramount to succeeding as a farm equipment dealer. George Russell, an executive partner with Currie Management, presented the keynote speech 'The Changing Structure of the Farm Equipment Dealership' during the inaugural Dealership Minds Summit touching on how and why the industry is transforming the way it does business.
While each of the speakers at the Dealership Minds Summit provided food-for-thought, Boyd Hofmann's presentation reinforced that the best ideas in the world won't work without the right processes and systems and follow-up mechanisms. Hofmann is vice president and general sales manager of JayDee Ag Tech, 9-store John Deere dealer group based in Saskatchewan that is focused on the large producer business. Its structure includes 3 regional sales managers and 21 ag territory managers, along with a support staff of 5 that is dedicated to settlements and sales assistance.
Kubota Corp. (6326), the Japanese farm tractor maker seeking an overseas purchase of as much as $2 billion, said the weakening yen will push sales to a record in the next fiscal year and won't curb its acquisition appetite.
Dealers appear to be feeling good about their prospects these days, according to the most recent Dealer Sentiments & Business Conditions Outlook Update survey.
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.
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