The limited cash available to farmers and ranchers in the U.S. will continue to put a dampener on the equipment markets in 2018 and 2019. The expanded depreciation programs that appeared in 2010 and reached its zenith in 2014 had the effect of pulling ahead purchases from future years. We are now enduring the results of that program.
China’s need for agricultural imports remains significant since they are faced with providing food for nearly one-third of the world’s population. The past decade has produced a growing middle class in China that has demonstrated an increased demand for not only basic foods, but also for high quality products that are only available from other parts of the world.
The strength of the U.S. economy continues to provide support for the smaller tractor sales but the recent declines in the stock markets will have a sobering effect upon some future purchases.
Looking back, 2017 will most likely be viewed as the turning point in agricultural equipment sales for this cycle. While there will probably remain some weakness in the larger tractors and combines in 2018, there are definite signs of a bottom developing.
Farm equipment sales history is replete with hills and valleys and we certainly are in a valley now. Traditionally, the range between the hilltop and the valley floor is about 20% in terms of unit sales.
Farm equipment sales history is replete with hills and valleys and we certainly are in a valley now. Traditionally, the range between the hilltop and the valley floor is about 20% in terms of unit sales.
In this episode of On the Record, brought to you by Associated Equipment Distributors, we take a look at Titan International’s 2024 results, and the tire manufacturers outlook for this year.
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