We’ll be releasing our June 2011 “Dealer Business Trends & Outlook” report to Ag Equipment Intelligence subscribers and dealers who participated in the survey in the next couple of days.

Overall, dealers remain positive and on average are projecting 6% sales growth for the full year. Many say they could do much better than that if they could get more new equipment. Others say their concern is growing about a build up of used equipment.

Overall, 68% of dealers report their new equipment inventory is “too low,” while only 32% say their new equipment inventory is “too high.”

On the other hand, when it comes to used equipment inventories, only 19% say it’s “too low,” 33% report it’s “too high” and 48% say it’s “about right.” That’s an increase of 7% compared with the previous month who say their used machinery backlog is “too high.”

As many dealers have feared, the most significant build up is coming with combines. One dealer comments that his combine inventory needs to be reduced by 15-20 units in the next three months.

Another offers, “I’m concerned with used harvester equipment inventory and a potential decline in values. I believe there will be a near-term ‘market correction’ on both used demand and corresponding values that will likely affect new combine/header sales for 2012.”

One dealer adds that he’s incentivizing his sales staff to not take trade-ins.

While it looks like 2011 could be another great year for new ag equipment sales, too often it’s used equipment sales that spell the real difference between profit and loss.