In current dollars ” ignoring the effects of inflation,” U.S. net farm income is forecast to exceed $122 billion in 2012 and net cash income is expected to exceed $139 billion, both record nominal values.
Higher commodity prices and solid volume growth in most GROWMARK business units produced record sales for the cooperative for the 2012 fiscal year, ending today.
Last year was marred by extensive flooding in the Central Plains region and thus affected farmers in the area and across the province. But 2012 has shown much promise in the farming community, including in farm equipment sales. Gilles Chabot of Chabot Implements said so far this year has been very good for farm equipment sales.
While U.S. and Canadian retail sales of farm tractors starting the second half of 2012 are showing surprisingly resilient, moderating trends in other countries are offsetting improvements in some overseas markets.
While opinions vary on the impact the drought will have on farm equipment sales for the rest of this year and next, most analysts agree the lower yields will result in higher commodity prices. This combined with the wider use of crop insurance is likely to blunt a major falloff in ag machinery sales in 2013.
During the three month period ended June 30, 2012, revenue increased by $49.6 million ($12.8 million for our agricultural equipment segment and $36.7 million for our commercial and industrial equipment segment) to $196.7 million from $147.1 million, an increase of 34%.
Dealer sentiments about equipment sales for the rest of the year look to be taking a "cautious"? turn and, in all likelihood, reflect the mood of their customers in the wake of the worst drought in the Midwest in more than three decades.
While the drought throughout the Midwest grain-producing region of the U.S. has industry observers speculating about its impact on farm machinery sales for all of 2012, North American retail sales have more than held its own through June and the first six months of the year.
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.
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