With the exception of Russia and New Zealand, worldwide sales of high horsepower farm tractors were on a downward trajectory as 2014 inches toward its close.
As commodity grain prices decline, University of Illinois’ ag economist Gary Schnitkey is advising farmers to reduce their capital expenditures sooner rather than later.
Source: Dealer Sentiments & Business Conditions Update, Nov. 2014
Dealers who handle AGCO-branded equipment expect flat sales in the year ahead making them the most optimistic for 2015, according to the most recent Ag Equipment Intelligence Dealers Sentiments & Business Conditions Update report.
Short-term financing for ongoing production needs appears to be further restraining medium-term borrowing for capital investments, like equipment and grain storage, according to the third-quarter edition of the Agricultural Finance Databook from the Federal Reserve Bank of Kansas City.
Deere & Co. will report its 4QFY14 earnings on Wednesday (Nov. 26), but most analysts don’t expect results much different than what most other ag equipment manufacturers have already reported.
The prospect of commercial production of cellulosic ethanol from corn stover — which is now a reality with the opening of the POET-DSM Advanced Biofuels plant in Emmetsburg, Iowa — has spurred ag engineers to develop new equipment to improve efficiency of the harvesting process and quality of the material delivered to processing plants.
Source: 2015 Farm Equipment Dealers Business Outlook & Trends
Nearly one-half of North American farm equipment dealers are expecting that full-year revenues from the sale of new equipment in 2014 will be down vs. 2013. This is about the same percentage of dealers who are projecting declining revenues in the year ahead.
Agriculture will take any good news where it can get it. Yesterday's World Agricultural Supply and Demand Estimates from USDA was less mundane than expected as it helped extend a small run up in corn futures when the ag agency actually trimmed the U.S. harvest
The CEO of India's second largest tractor manufacturer, TAFE (Tractor and Farm Equipment Ltd.), who is AGCO's largest shareholder, has reached an agreement with AGCO
Deere & Co. released its retail sales comment for September yesterday (October 13). Overall, the company out performed the industry in sales of the major equipment categories
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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