It has been shown that U.S. sales of farm machinery closely correlate with the price of U.S. corn. With the two core components of demand for corn being exports and ethanol, equipment dealers and manufacturers closely scrutinize the trends in both these segments.
There's little doubt that ag equipment rollover programs have played a significant role in the last decade in increasing the sales volume of large farm machinery, particularly combines.
Cervus Equipment Corp. said its revenues rose by $26.8 million, or 11.5%, during the dealer group’s third quarter, ended September 30. Overall revenue for the period was $260.8 million vs. the same timeframe in 2012.
Farm machinery dealers are looking at another good year for overall sales, according to the Tractor and Machinery Assn.’s Richard Lewis in a November 3 report in The Land by Neil Lyon.
North American large ag equipment retail sales declined in September, with 4WD tractor sales down 25.7% year-over-year and combine sales down 26.6%, partially offset by row-crop tractor sales which increased 7.7% (+11.8% last month).
While questioning farm equipment dealers about indicators they're observing and actions they would take if and when confronted with agriculture's next big business cycle, Farm Equipment editors recently asked dealers for their views of the near-term prospects for the industry.
With the exception of combines, North American farm equipment dealers are reporting that the value of most used ag machinery continued to hold firm through Feb. and there’s little evidence of any significant shift toward lower pricing in the near term.
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In this episode of On the Record, brought to you by Associated Equipment Distributors, we take an initial look at the Dealer Business Outlook & Trends Report and what dealers are forecasting for 2025.