Prior to the emergence of global economic developments related to COVID-19, growth in farm lending continued to show signs of slowing. While the volume of operating loans in the first quarter of 2020 increased slightly from a year ago, overall demand for non-real estate loans declined.
According to a report from CEMA, the general business climate index for the ag equipment industry in Europe has experienced its sharpest drop since since the financial crisis of 2008-09
Based on the results of their first quarter 2020 survey of North American ag equipment dealers, analysts from investment banker Stifel say dealers are expressing less optimism about their prospects to improve sales compared to the fourth quarter of 2019.
In an environment marked by trade conflicts, the coronavirus outbreak and ongoing low commodity prices, North American agriculture has few assurances about what’s ahead. The one thing that the equipment distribution part the industry can count on is dealer consolidation.
According to a report from Purdue and CME Group, the Ag Economy Barometer plummeted in March, dipping 47 points (28%) from a month earlier to a reading of 121. The point drop was the largest one-month fall in the life of the index, which dates to October 2015.
U.S. agricultural exports are projected to total $139.5 billion in fiscal year 2020, while agricultural imports are expected at $132.5 billion, according to the Economic Research Service’s latest outlook for U.S. agricultural trade.
The Equipment Leasing and Finance Association’s (ELFA) Monthly Leasing and Finance Index (MLFI-25) showed their overall new business volume for February was $6.8 billion, up 15% year-over-year from new business volume in February 2019.
As U.S. farmers launch the 2020 planting season, they will confront the usual, and in some cases unusual challenges. Fuel prices won’t be one of them. According to the Energy Information Administration (EIA), oil market volatility is at an all-time high and prices are at a nearly 20 year low.
In recent years, farm real estate (land and structures) has typically accounted for about four-fifths of the total value of U.S. farm assets. Farmland values have stabilized since 2014, following a long trend of appreciation since the 1980s. However, there is regional variation in both farmland value levels and growth trends.
Illinois farmland values continue at stable levels according to a March 19 report issued by the Illinois Society of Professional Farm Managers and Rural Appraisers (ISPFMRA).
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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.