2016 is shaping up to be a difficult year but there are some bright spots shining through. U.S. farmers continue to exhibit some financial strength and that should allow them to take advantage of any future buying opportunities that might arise.
A sale to set the market is how the Nov. 29, 2016, absolute dealer auction for SEMA Equipment in Rochester, Minn., was being viewed by all in the farm equipment space — dealers, ag lenders, famers, auction firms. It’s easy for me to be on hand for this big sale as it was right where I lived for the past 27 years, in Rochester, Minn.
Could no-till push up annual wheat yields by as much as four times what they were a decade or so ago? When you juggle some math, that’s exactly what has happened in an area of eastern Montana.
Take a wild guess. Over the past 3 decades (1985-2015), the average sales of high horsepower tractors were right around 30,000 units per year. How many years during this period were sales above average? How many were below average? How many were about average?
November is off to quite an interesting start. I saw some very strong auction prices during the first 10 days of the month. These strong auction sale prices don’t surprise me — even in this stubborn down ag economic cycle we’re stuck in. Why am I not surprised? Because it’s the same thing I’ve been seeing now for 6 years in a row now going back to 2010.
Supply and demand is alive and well in the U.S. agricultural economy. Harvest of U.S. crops has begun and brings with it a great expectation of a record yields. Like a huge seesaw, high demand for a commodity elevates the prices customers are willing to pay for that product and when there is an excess worldwide inventory, prices fall to meet the slowing demand.
As Americans file into their polling locations today and cast their vote in what can only be described as a polarizing election, it’s important to remember that we’re not just electing the next president.
It wasn’t too awfully long ago when we surveyed farm equipment dealers about their biggest concerns, inevitably issues with their manufacturers would be ranked among their most concerning dilemmas. From dealer purity and succession planning to industry consolidation, many dealers were angry or fearful about their manufacturers tactics and plans to give their business to another dealer. They more readily made their feeling known a few years back.
In this episode of On the Record, brought to you by Associated Equipment Distributors, Jason Webster, commercial agronomist with PTI Farm, breaks the results of PTI Farm’s 2024 HIgh Speed Planting Corn Study.
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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