Hope for Application Equipment Sales

The old saying goes that a “rising tide lifts all boats.” If this is indeed the case, then things may finally be starting to look up for the ag retail equipment marketplace.

It’s no secret that ag retail equipment has had a tough go of it the past few years. As commodity prices have fallen under key benchmarks for grower-customers (under $4 for corn and $9 for soybeans), they have collectively cut back on their equipment spending. Likewise, this has forced ag retailers to curb their spending habits as well.

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But the winds of agriculture may finally be turning in equipment’s favor. In the latest statistics available from the Association of Equipment Manufacturers (for March 2017), tractors sales were up 6% compared with sales from March 2016 and combine sales grew 11% during this same time frame. On the surface, this seems to indicate that growers have finally “caught up” with some of their financial issues and are once again buying new equipment.

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Given this fact, can ag retailer-oriented equipment such as self-propelled sprayers and fertilizer spreaders be far behind? Already there are hints of some movement on this front. Many manufacturers such as New Leader have introduced new models. More are coming once the summer trade show season rolls around, lead by such equipment makers as AGCO, GVM, and Case IH. All of these new units will be ready to help grower-customers in their quest to grow yields and profits for the 2018 season.

It should be fun to see some of these new models up-close-and personal. I think I speak for many in the marketplace when I say “I can hardly wait for summer to get here!”

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