In its Feb. 4 Ag Finance Databook and Feb. 15 Ag Credit Survey report, the Federal Reserve Bank of Kansas City characterized current credit conditions as “stabilized modestly but continuing to show signs of weakness … despite signs of stabilizing in the fourth quarter, bankers’ expectations were for loan demand to strengthen and loan repayment rates to weaken slightly in the first quarter of 2018.”

According to Ag Equipment Intelligence’s monthly Dealer Sentiments survey, since the start of 2017, farm equipment dealers’ year-over-year level of optimism has varied by as much as 42% from one month to the next compared to the prior year.

While farm equipment sales trends by region were mixed in May, overall dealers report seeing some improvement in the first quarter of 2017.

Nearly half (49%) of dealers who cater to the commercial and consumer-type equipment needs of hobby farmers, large property owners, turf, lawn and landscape contractors, as well as municipalities and parks maintenance customers expect solid revenue growth during 2017. This confident outlook comes on the heels of strong sales years in 2015 and 2016.

North American dealers surveyed reported that, on average, equipment sales were down 16%. Dealer commentary focused on the most pressing issues facing the industry.

With calendar year 2015 winding down, many in the farm equipment business have written off the possibility for any significant pick up in sales for this year and are looking at the possibilities for 2016.