While manufacturers and industry analysts have noted in recent months that the farm equipment industry has entered a replacement cycle, equipment sales alone don’t tell the full story of a farm equipment dealership’s health and profitability. Expenses, inventory management, marketing and other aspects of the business all factor into a dealership’s success.
And, as ag equipment sales start to bounce back from 4 years of depressed sales, it will be important to make sure other aspects of the business don’t fall to the side in the face of returning sales. The Tax Cuts & Jobs Act will bring some relief to farm equipment dealers’ mounting expenses, but diligence and closely scrutinizing all expenses to make sure they are justified will remain important for dealerships to keep profitability top of mind.
