Prices being paid for farmland across Illinois have seen a softening of from 2.0 percent to 4.1 percent according to the Midyear Land Values Snapshot Survey done by the Illinois Society of Professional Farm Managers and Rural Appraisers.
Last week, Deere & Co. reported its second-quarter net sales and revenues were down by 9% to $9.9 billion and net sales and revenue, and net income fell to $981. Overall, worldwide equipment sales fell by 10% to $9.2 billion.
Source: Dealer Sentiments & Business Conditions Update, April 2014
For the second month in a row, North American farm equipment dealers are reporting that manufacturers have become more aggressive with incentives to increase machinery sales.
Nearly 90% of dealers polled for Ag Equipment Intelligence's '2014 Dealer Business Outlook & Trends' survey say they expect prices for new equipment next year to rise between 1% and 6%. Only 2.8% of dealers say they don't expect increases for the price of new equipment in 2014.
For farm equipment dealers, planning for agriculture's business cycles must involve close contact with customers. In addition to observing economic indicators over a period of time, it's essential for dealers to put the data into context with history and customer input, says Graham Drake, president and CEO of Cervus Equipment Co.
This may be off our beaten path of focusing on farm machinery trends, but Ag Equipment Intelligence editors came across this bit of information on rising food prices vs. rising fuel prices and thought we would pass it along.
Since much of what we're reading these days is about the drought of 2012 and its impact on commodity prices and ultimately its effect on food prices, I am reminded of the risk-reward tradeoff I learned about back in my college days. It makes me wonder why no one pays much attention to the risk? side of the equation. According to the risk-return tradeoff, you must spend money to make money. Or more correctly, it says reinvested money can render higher profits only if it is subject to the possibility of being lost.?
According to a June report in the Wall Street Journal, Ethanol demand is topping out. The amount used in gasoline is near federal mandates, and gasoline consumption is declining. After 15 straight years of growth, ethanol production this year will fall slightly and will be roughly flat next year, according to the U.S. Energy Information Administration's May forecast.?
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.
Montag is the industry’s innovative leader for precise, accurate metering of fertilizer, seed and other nutrients. The Montag system has become the standard for deep banding of fertilizer. Montag is also pioneering the technology for cover crop seed application. The new Cover Crop+ is able to meter the smallest seed, and can be mounted to tillage implements, combines, plus Hagie sprayers and detasselers.
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