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A surprising November equipment sales report

Despite a softening ag economy, US ag equipment sales have remained mostly positive.

Curt Blades, with the Association of Equipment Manufacturers, says overall equipment sales have been resilient, largely because farmers are in a replacement market.  “There were so many pieces of equipment that were bought 5 and 7 years ago when prices were high and it’s taken time for those to make their way through the system,” he says.  “Now we’re finding that some of those deferred purchases are finally getting to a point where a farmer needs to reinvest into their equipment.”

He tells Brownfield trade uncertainties remain a concern as farmers struggle with lower farm income.  “Just that uncertainty where that grain is going to go – knowing that so much of the grain that is grown in the Midwest is producing food and a whole lot of it is exported,” he says.

Blades says making E-15 available year-round and a reemergence of China into the ag market will add more stability into the farm economy and help to support strong sales into 2019.

AEM’s November US Ag Tractor and Combine report showed overall sales remained positive for the year.  Combines gained a little more than 9 percent year-over-year and US sales of 4-wheel-drive tractors jumped nearly 61 percent month-over-month.

AUDIO: Curt Blades, AEM