As the Federal Reserve backs away from its policy of quantitative easing that it has employed during the last several years in an attempt to jumpstart the U.S. economy, it's expected to push up interest rates for borrowing.
While the unpredictability of commodity prices in the past year have given some cause for concern, the fact remains U.S. agricultural fundamentals continue to support the long-term health of the industry.
North American large ag equipment retail sales fell in February, with 4WD tractor sales down 14.1% year-over-year, combine sales down 15.2% and row-crop tractors down 6.4%, according to the the latest figures released by the Assn. of Equipment Manufacturers on March 11.
Cervus Equipment, John Deere’s biggest ag equipment dealer group in Western Canada, saw a 23% jump in revenues for 2013, but margin pressures pushed net profits down by 1.3% for the year.
If Western Canadian farmers can get their crops to market, 2013 will have been a record year for much of the country’s agricultural sector, and ag machinery dealers didn’t have much to complain about either.
While Rocky Mountain Dealerships posted a 4% gain in overall sales for 2013, its fourth quarter numbers took a hit as the dealer group focused on reducing equipment inventories and its construction equipment segment continued to falter.
USDA’s initial forecast for 2014 net farm income is $34.7 billion lower than current expectations for 2013, but is $8 billion higher than the average of the previous 10 years.
North American large ag equipment retail sales saw mixed results in January, with 4WD tractor sales down 6.9% year-over-year, combine sales up 32.7% and row-crop tractor sales increasing 12%, according to the Assn. of Equipment Manufacturers.
VDMA, the German Agricultural Machinery Assn., is reporting that German sales of farm equipment rose by 9% in 2013, to a new record of 8.36 billion euros ($11.4 billion).
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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.