The rapid growth of emerging markets worldwide is creating unprecedented demand for farm machinery, according to the Agrievolution Alliance, a global alliance of agriculture equipment manufacturing associations.
Corn prices got at least a reprieve from its 40% decline from a year ago on the news that USDA lowered ending stocks to 13.9 billion bushels, a drop of 64 million bushels from previous estimates.
Harvest machinery specialist Claas not only celebrated its 100th anniversary in 2013, it also posted another record set of financial results. Group sales were up 11% on the prior financial year ended September 30, hitting the equivalent of almost $5.2 billion at current exchange rates.
Source: Dealers Sentiments & Business Conditions Update, Dec. 2013
While we've come to expect dealers to report used equipment levels as "too high," for the fourth consecutive month, dealers are now also reporting their new equipment inventories as "too high."?
Few will argue with the fact that the very generous depreciation rules for farm machinery introduced in 2008 have played a significant role in the protracted run of strong sales years for ag equipment dealers and manufacturers.
It has been shown that U.S. sales of farm machinery closely correlate with the price of U.S. corn. With the two core components of demand for corn being exports and ethanol, equipment dealers and manufacturers closely scrutinize the trends in both these segments.
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.