Declining Corn Production, Too Much Capacity Squeezing Ethanol Profits

While the expected fall off in corn production and rising prices during the current cropping year could help bolster the sagging bottom lines of growers, it’s adding to the anxiety levels of ethanol producers who are already looking at extremely tight operating margins.

Corn & Soybean Maturity Significantly Behind 5-Year Average for Mid-July
Only 17% of this year's corn crop is silking and only 22% of soybeans are blooming.
Zimbabwe to Buy U.S., Belarus Ag Equipment
Shipments of more than $100 million worth of ag equipment from Belarus and the U.S. are expected to start arriving in Zimbabwe this month as the South African state aims to improve agricultural efficiency and productivity.
What States are Leading in Hemp Production?
The de-scheduling of hemp from the Controlled Substances Act has set off a flurry of activity in agriculture that is reminiscent of that when the passage of the Renewable Fuel Standard was passed by Congress, which set mandatory levels of biofuels were to be used in automobile and diesel engine fuels.

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Mergers & Acquisitions

Java Farm Supply to Acquire Mabie Bros.
Founded in 1951, Java Farm Supply represents more than 20 different brands of new and used farm equipment from advanced agriculture machines and compact tractors to lawn and garden equipment. Its brands carried include Massey Ferguson, Fendt, Krone and Gehl.
Unverferth Announces Intent to Purchase Blu-Jet Products
Unverferth Manufacturing Co. Inc. has announced its intent to purchase the Blu-Jet equipment assets including the wide variety of fertilizer application and tillage products from Thurston Manufacturing Co., Thurston, Neb.
ASV Holdings Signs Definitive Merger Agreement with Yanmar Holdings
ASV Holdings (NASDAQ: ASV), a manufacturer of rubber-tracked compact track loaders (CTLs) and wheeled skid steer loaders (SSLs) in the compact construction equipment market, announced that it has entered into a definitive merger agreement with an affiliate of Yanmar Holdings.

Earnings Reports

Art’s Way Revenue Up 8.6% Year-Over-Year in 2Q19
Consolidated corporate sales for continuing operations for the three- and six-month periods ended May 31, 2019 were $5,747,000 and $9,871,000, respectively, compared to $5,294,000 and $10,660,000 during the same respective periods in fiscal 2018, a $453,000, or 8.6%, increase for the three months and a $789,000, or 7.4%, decrease for the six months.
Lindsay Corp. 3Q19 Revenue Drops 29%; Low Commodity Prices and Trade Disputes
Revenues for the third quarter of fiscal 2019 were $121.1 million, a decrease of $48.5 million, or 29%, compared to revenues of $169.6 million in the prior year third quarter.
Kubota’s 1Q19 Revenues Rise 12.2%; Farm & Industrial Segment Up 14.9%
For the 3 months ended March 31, 2019, revenue of Kubota Corp. and its subsidiaries increased by $483.6 million (12.2%) from the same period in the prior year to $4.46 billion.

Audio Edition

Ag Equipment Intelligence — June 2019

The Audio Edition of June 2019 newsletter is now available to our subscribers. This additional new format is another way for Ag Equipment Intelligence VIP members and subscribers to stay up-to-date on the latest news and trends from the worldwide farm equipment industry.

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Ethanol Exports Could Grow, But Little Impact on Equipment Sales

The latest episode of On the Record is now available! In this week's program we look at a recent CoBank report on the potential for ethanol production growth over the next decade. Also in this episode, Jack Zemlicka discusses the post-planting mindset of "selling solutions" in the Technology Corner, and we dig into some of the results of the 6th annual Strip-Till Practices study from Strip-Till Farmer, another drop in machinery loans in the Dallas Federal Reserve district and improved 2Q revenues for Art's Way.

3Q Economic Outlook Forecasts 3.9% Growth in Equipment & Software Investment
After two consecutive years of solid growth, equipment and software investment growth is likely to slow in 2019 to 3.9%, according to the Q3 update to the 2019 Equipment Leasing & Finance U.S. Economic Outlook released today by the Equipment Leasing & Finance Foundation.
USDA Reports Corn Acres Planted Up 3% Year-Over-Year; Soybean Acres Planted Down 10%
Following a famously difficult planting season in the U.S., the USDA June Acreage Report showed a surprising increase in corn acres planted year-over-year, up 3% compared to June 2018.
Farmer Sentiment Improves Following Rise in Crop Prices and USDA Aid
The Ag Economy Barometer rebounded in June to a reading of 126, 25 points higher than a month earlier. The barometer is based upon a nationwide monthly survey of 400 U.S. agricultural producers. Both of the barometer’s sub-indices, the Index of Current Conditions and the Index of Future Expectations, improved compared to a month earlier.
Bureau of Economic Analysis Third Estimate Shows GDP Holding at 3.1% in 1Q19
Real gross domestic product (GDP) increased at an annual rate of 3.1 percent in the first quarter of 2019 (table 1), according to the "third" estimate released by the Bureau of Economic Analysis. In the fourth quarter of 2018, real GDP increased 2.2%.

Declining Corn Production, Too Much Capacity Squeezing Ethanol Profits

Corn & Soybean Maturity Significantly Behind 5-Year Average for Mid-July

Zimbabwe to Buy U.S., Belarus Ag Equipment

What States are Leading in Hemp Production?

Mergers & Acquisitions

Java Farm Supply to Acquire Mabie Bros.

Unverferth Announces Intent to Purchase Blu-Jet Products

ASV Holdings Signs Definitive Merger Agreement with Yanmar Holdings

Earnings Reports

Art’s Way Revenue Up 8.6% Year-Over-Year in 2Q19

Lindsay Corp. 3Q19 Revenue Drops 29%; Low Commodity Prices and Trade Disputes

Kubota’s 1Q19 Revenues Rise 12.2%; Farm & Industrial Segment Up 14.9%

Audio Edition

Ag Equipment Intelligence — June 2019

Featured Video

Ethanol Exports Could Grow, But Little Impact on Equipment Sales

Data & Trends

3Q Economic Outlook Forecasts 3.9% Growth in Equipment & Software Investment

USDA Reports Corn Acres Planted Up 3% Year-Over-Year; Soybean Acres Planted Down 10%

Farmer Sentiment Improves Following Rise in Crop Prices and USDA Aid

Bureau of Economic Analysis Third Estimate Shows GDP Holding at 3.1% in 1Q19

Podcasts

[Podcast] On The Record: Could 2020 Be the Year the Ag Equipment Market Bounces Back?

[Podcast] On The Record: Is Titan Ready to Pick Up Acquisition Activity Again?

[Podcast] On The Record: Wet Weather, Low Commodity Prices & Trade Push Dealer Sentiment Lower

Featured Products

High Speed Compact Discs: U.S. Market Overview (PDF)

2019 Big Dealer Report (PDF)

2019 AEI Dealer Business Outlook and Trends (PDF) - Farm Equipment Forecast

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