Items Tagged with 'farm income'



Are We Headed Back to the 2014 Used Equipment Glut?

According to Iron Solutions’ Director of Data Services and Software Development Cameron Hurnard, things aren’t quite as grim as they were 8 years ago. However, some of the same issues that caused the 2014 used equipment glut need to be monitored now and in the future.
Many dealers remember how used equipment began to sit on lots in 2013-14, driven by rising commodity prices, low input costs and a notable increase in the supply of new equipment. This spelled trouble for the used market, with some equipment sitting for over a year before it moved.
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Kim Schmidt
From the Desk of Kim Schmidt

Farm Equipment Price Increases Take Hold

When the U.S. announced tariffs on imported steel, there was a lot of speculation — and maybe even fear — about what it would mean for farm equipment prices. Now that the dust has settled a bit, we’re starting to get some answers.
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After Falling in 2016, U.S. Farm Net Income Expected to Begin Rising in 2017

USDA released its Agricultural Projections to 2025 this past week. If the current outlook holds, it could be good news for farm equipment dealers. According to the report, farm net income, which ultimately determines if farmers will invest in capital expenditures (equipment, buildings, etc.), will bottom out in 2016 and begin a gradual rise for the next decade. In all likelihood, it will not reach the levels seen in 2013 and 2014, but it will be an improvement vs. 2015 and 2016.
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Profitability Varies be Farm Size

According to the USDA Economic Research Service, profitability is strongly associated with farm size. Larger farms can often use their resources more productively than smaller farms, generating more dollar per unit of capital.
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Forecast & Trends

Not Everything's Downbeat Down on the Farm

Reading about projections for a significant falloff in net farm income and cash receipts in the year ahead might lead you to think that farmers are in desperate shape. But the fact is after coming off 4 or 5 really strong years, as a whole, U.S. farmers are sitting pretty nicely when it comes to strong assets and low debt levels.
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