2015 Agricultural Market Read: Mixed
January 26, 2015 As one of the first trade show events of the new year, the annual Illinois Fertilizer & Chemical Association (IFCA) meeting is usually a good gauge of how the upcoming agricultural season will play out for market participates. Based upon this, 2015 could be the most varied year, segment-wise, the industry has seen since the early 2000s.
For months now, I’ve heard from my industry friends that 2015 could be a difficult year for in the field equipment such as self-propelled sprayers – and nothing I heard at IFCA contradicted this view. “It’s been very, very slow compared with last year and the year before,” said one manufacturer representative. “I’ve heard some companies are announcing layoffs, with more likely to come.”
In contrast to this, those companies involved in the building and upgrading of ag retail facilities are continuing to experience interest in their areas. “We still have strong demand for new structures and the materials that go into them from retailers,” said Steven Anderson of Stueve Construction Co. “So 2015 is looking to be at least as strong a year for us as 2014 was.”
Loading ...For crop input suppliers, the news is a bit more mixed. Some segments such as liquid fertilizer and crop protection products are seeing increased demand. Others such as potash and phosphates are relatively flat at the moment.
Meanwhile, high tech and precision ag-oriented equipment seems equally mixed. In some segments such as unmanned aerial vehicles (UAVs), there is plenty of market interest, but little actual sales taking place as everyone waits for federal guidelines to be put in place. Apps, on the other hand, are expanding at an incredible rate, particularly those tied to equipment control and data analysis.
This picture will undoubtedly become clearer once more of the winter trade shows are held (and grower-customers make their final decisions on crop mix/crop input use). But for now, it certainly looks as if 2015 will be a very interesting year for agriculture, no matter which way it ultimately plays out.
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