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.
In its May/June presentation for investors, Deere & Co. outlined the steps it is taking to reach its goal of doubling its net sales to $50 billion by 2018.
USDA's issued its Prospective Plantings report last Thursday and it got the attention of most industry observers as it projected the most acreage planted to corn in 75 years. At the same time, it forecast that soybean and wheat acres would slip below 2011 plantings.
While total 2012-13 U.S. crop receipts are forecast to slip by 4%, total planted acreage is expected to be up by 3.6% for the year, according to the USDA.
Changing farming practices, including the trend toward concentrated production on specialized operations, along with others such as wider use of irrigation and growing adoption of precision agriculture technologies, have allowed the farm sector to increase total output by nearly 50% over the past three decades, even as resources used in farming declined.
Used equipment inventories, especially combines, continue to be somewhat concerning to dealers, according to the UBS survey, but overall they still see the situation as “manageable.”
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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.