Regardless of where you are in the world, the main focus of all farmers is to increase their yield and get more out of every acre or hectare. What's different is how that goal is accomplished in different areas of the world. There are a number of global planter and seeder technology trends dealers should keep an eye on that will make their way to North America.
Tomorrow the Assn. of Equipment Manufacturers will release June farm equipment sales figures, and if the current trends hold, they should be hefty as North American sales of large ag equipment continued to skyrocket through the first 5 months of 2013.
North American large ag equipment retail sales accelerated in June, driven by growth in row-crop tractor, 4WD tractor and combine sales which increased 27.5%, 8.4% and 18.1% year-over-year, respectively, according to data released by the Assn. of Equipment Manufacturers.
While sales were up, Lindsay notes increased rainfall across the Corn Belt diminished the favorable impact of drought conditions on irrigation equipment demand over the past 12 months. The concern has now switched to the impact of delayed plantings and crop yields on crop prices and farm incomes.
With the majors adding to their product lines and pressuring their dealers to remain “pure” in the equipment they carry, it’s becoming increasingly more difficult for shortliners to find the right dealers in the right markets, Rusty Fowler, the retiring president and CEO of Krone North America, told Ag Equipment Intelligence.
While industry wide sales of farm tractors and combines continue at a brisk pace, in its June monthly retail announcement on July 11, Deere and Co. reported it experienced “mixed” results in May.
Another important indicator for when a new business cycle for agriculture could be in the offing is rising interest rates. Low interest rates have been in effect for such an extended period of time, many consumers take for granted that they'll always be low. For many consumers today, extremely low borrowing rates have become the new norm.
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.
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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.