Reduced spending resulted in improved profitability for no-till farmers in 2016, according to the 9th Annual (2017) No-Till Farmer No-Till Practices Survey. No-Till Farmer is a sister publication of Ag Equipment Intelligence.
From cashflow to ordering and managing inventory, intelligently forecasting equipment sales are critical for dealers’ financial planning. Unlike dealerships catering to production farming that can use commodity pricing as a signpost for industry trends, for those specializing in rural lifestyle markets economic indicators are not so clear cut.
As 2016 came to a close, North American large ag equipment sales continued to decline, marking the 35th month of declines, says Mircea (Mig) Dobre, senior analyst with Baird Equity Research.
According to a Dec. 13 report in Agrimoney.com, MetLife thinks the official estimates for this year’s U.S. harvest may be too large and that there will be a global production “pullback,” that could result in the new year being a “turning point” for grain prices.
Typically, November is a seasonally slow month for North American large ag equipment sales, and that held true once again this year, according to the latest numbers released by the Assn. of Equipment Manufacturers.
USDA’s Economic Research Service is projecting 2016 net cash farm income will slip to $90.1 billion and net farm income to $66.9 billion, largely the result of declining animal and animal product receipts.
Comparing Deere & Co.’s outlook for 2017 issued on Nov. 23 to that of USDA’s issued earlier this year, you would have to conclude that the world’s largest manufacturer of farm equipment is a bit more optimistic about the year ahead than is the U.S. ag agency.
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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.