Farmers Are Stretching Equipment Budgets

An article on Farm Progress

Weighed down by geopolitical tensions, new equipment sales remain low, while original manufacturers continue to cut back output to meet slackened demand. Bottom line is, well the bottom line: Most farmers have good reason to stick to window-shopping.

Even with $44.3 billion in direct government payments — nearly $14 billion more than last year — net farm income is expected to fall by $1.2 billion, according to USDA’s Economic Research Service.

“The June data reflects a market that is still navigating significant economic headwinds,” said Curt Blades, senior vice president at the Association of Equipment Dealers. Referencing the organization’s latest industry report, Blades noted an 18% drop in tractor sales and a slight 3.9% increase in combine sales.

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