On a recent post, I shared a link on how the “good times” in agriculture could be with us for some time. And while all indicators look good, the ag equipment sector is projecting a slight slowdown in sales over the next three years.
According to a blog post at Farm Industry News, a survey from the Association of Equipment Manufacturers says that while high commodity prices, low interest rates, and increased export demand have driven the current demand for farm equipment, “Higher steel prices and the state of the general economy are expected to temper that growth. Survey respondents predicted the U.S. agricultural machinery business to grow 4.9 percent in 2012, 2.9 percent in 2013, and 2.8 percent in 2014, compared to a projected 6.4 percent in 2011.”
“The general economy has stalled somewhat in recent months, and we are always aware of the potential for boom-and-bust cycles,” states Charlie O’Brien, AEM agriculture sector vice president. “Manufacturers are assessing the business landscape for any possible slowdowns in domestic demand as well as overseas.”
It’s a good read, and definitely something to watch as you make your long-term equipment purchase plans. And of course, any slowdown in the new equipment market will likely have a trickle-down effect on the used market.
So have you made any long-term equipment purchase plans?