Passage of the Section 179 and Bonus Depreciation tax incentives in late December probably helped some, but not enough to meaningfully reduce new and used farm equipment inventories on dealers’ lots.
Nearly 40% of North American farm equipment dealers are reporting that used tractor inventories are still healthy, but few are expressing major concerns as pricing remain solid. Not so for combines.
In this issue of Farm Equipment, we present a look at the used farm equipment market from a variety of different angles - from dealers to equipment auctioneers. But the bigger story is where it's all heading.
We recently completed our monthly survey of N. American Ag equipment dealers and had several discussions with large ag dealers in the farm belt. While it's not surprising to hear that price realization on new equipment continues to be strong, what is surprising to dealers over the last few months has been the strength in used equipment values.
North American farm equipment dealers continue reporting that their new equipment inventories are "too low" and the used equipment portfolios remain "too high", according to the most recent dealer survey by Ag Equipment Intelligence and Cleveland Research Co.
Each of the major North American farm equipment makers — AGCO, Case IH, John Deere and New Holland — were invited to contribute to this special report on equipment rollovers and provide their perspective. Only AGCO chose to participate. Steve Gorsuch, director of national accounts for AGCO, provided the company’s responses. Here are his answers.
“We’re a small ag dealer in Vermont where 90-95% of our ag business is with dairy producers. We’re not enjoying all the spoils of our Midwestern counterparts and continue to operate in a very cyclical and volatile ag sector. Add to this the conservative nature of our region’s farmers and the continued climb of equipment prices, and it makes for a very challenging business climate.
In this episode of On the Record, brought to you by Associated Equipment Distributors, we take a look at CNH Industrial’s goals for growing its precision business by 2030.
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