With commodity prices staying low and farmers facing higher interest rates for the foreseeable future, there is reason to be cautious about equipment sales moving forward, especially after 2017’s mixed bag of results between Canada and the U.S. Some manufacturers, though, do see light at the end of the tunnel.
At play in the optimism, according to Curt Blades, Association of Equipment Manufacturers (AEM), is that farmers are looking to replace current units that they may have held onto for one or two years longer than expected.
John Deere predicts agricultural equipment in the U.S. and Canada are forecast to be up about 10 percent for 2018, led by higher demand for large equipment.
Although sales of smaller tractor units were the positive for 2018, manufacturers are looking to move all sizes, including the biggest 4WD tractors and high-capacity combines.
Curt Blades, Association of Equipment Manufacturers talked to Shaun Haney at the Commodity Classic about how their members feel about the 2018 year ahead for agriculture equipment sales.