North American farm equipment dealers see solid sales through the end of this year, but are realistically expecting 2014 sales revenues next year to be about the same as 2013 or possibly somewhat lower.
According to the results of the most recent Dealer Sentiments & Business Conditions Update survey, farm equipment retailers reported that year-over-year sales grew by 3% on average in August. This is in line with what the dealers reported in July. Case IH dealers saw the highest growth at 12%, while John Deere was the weakest with sales down 7%.
For the rest of this year, dealers are forecasting 3% sales growth. For 2014, early dealer indication is that sales will be flat to down, depending on geography.
In Farm Equipments 2014 Dealer Business Outlook Trends report, which appears in the magazines October/November issue, dealers in the Pacific region reporting the most optimistic outlook for next year. On a weighted basis, here's how dealers in the 10 agricultural regions plus the entire U.S. and Canada view their prospects for increasing revenue in 2014:
Pacific 2.75
Delta States 1.69
Canada 1.66
Mountain 0.75
U.S (all) 0.65
Southern Plains 0.50
Northern Plains 0.45
Corn Belt 0.41
Lake States 0.33
Appalachia 0.06
Northeast 0.21