How will farm equipment dealers grow their businesses in the near future? Sell more equipment? Acquire more locations? Offer more types of product, like compact construction equipment or specialized machinery? Diversify into other types of businesses?
Topping the list of the top stories in April was news of Deere's acquisition of sprayer manufacturer Hagie and in-depth look at the acquisition in On The Record.
I can’t say I’m a big fan of this time of the year. While farmers are anxious to get in the fields and dealers are busy helping them get ready, I’m reading all of the speculation that industry pundits tend to toss around just before planting season. Most of it doesn’t say much.
The single biggest challenge preventing specialty ag equipment manufacturers from expanding their operations and market reach is the lack of adequate distribution channels. Or more plainly stated, they can’t find dealers to sell their products. Or maybe it’s the kind of dealers they want — and need — to sell and service their equipment.
Farm Equipment Executive Editor and Ag Equipment Intelligence Editor/Publisher Dave Kanicki will join a panel of experts to discuss their 2016 outlook for the agriculture and farm equipment industries during the Jefferies Commodity Expert Panels on April 4 in New York City.
When commodity prices fall, farm equipment purchasing is the first area in which farmers reduce spending. In their February report, Rabobank analysts Kenneth Zuckerberg and Sterling Liddell anticipate that commodity prices will stabilize over the next 5 years to near break-even levels.
Like most of you, I’m a bit tired of all the less-than-positive news surrounding agriculture these days. While we’re obliged to report on what’s happening — good or bad — that’s impacting farm equipment sales, we can still dig around for a bit of good news wherever we can find it.
After what looked like some progress at the end of last year, dealers in the February Dealer Sentiments & Business Conditions Update survey reported that both new and used farm equipment inventories sitting on their lots remains “too high.”
When Deere & Co. announced its first-quarter 2016 earnings last Friday (Feb. 19), it reported that its worldwide equipment sales declined 15% compared to the same period of 2015. The company also said that it expects fiscal year 2016 sales to be down 10% year-over-year vs. down 7% in its previous forecast. For the U.S. and Canada, the company says it anticipates retail sales to be down 15-20%, with large ag retail sales down by as much as 25-30%.
“Looking out into 2016, it’s easy to focus on the sheer amount of used equipment available,” says Greg Peterson, also known as Machinery Pete. “In addition to the used inventory on dealers’ lots, I’m also seeing a big increase in the number of machinery auctions.”
Built on 90 years of expertise, Yetter Farm Equipment leads the agriculture industry in designing effective and innovative equipment for residue management, seedbed preparation, precision fertilizer placement, harvest attachments, strip-tillage, and more.
Montag is the industry’s innovative leader for precise, accurate metering of fertilizer, seed and other nutrients. The Montag system has become the standard for deep banding of fertilizer. Montag is also pioneering the technology for cover crop seed application. The new Cover Crop+ is able to meter the smallest seed, and can be mounted to tillage implements, combines, plus Hagie sprayers and detasselers.
At Machinery Scope, we believe you deserve the best risk management solutions for your investments in heavy equipment. Since 2013, we have been proud to offer extended warranty, appraisals, and inspections. Machinery Scope is a family-owned business built on our experience in farming and equipment dealerships. We understand your business and provide a personalized and professional level of customer service. Machinery Scope has built a strong warranty product with our customers in mind, offering the same professional level of service from the time you get a quote, through the processing of a claim.