The results of Ag Equipment Intelligence’s latest dealer survey show that North American farm equipment dealers continue to see a softening in ag equipment sales. Here’s a summary of the Aug. 2014 “Dealer Sentiments & Business Conditions Update” report that was released to subscribers last week:
Industry Sales Down 4% Year-Over-Year in July
Dealers reported sales were down 4% on average in July, inline with the 4% sales declines reported last month. AGCO dealers and “Other” dealers were the two brands to buck the trend, both reporting mid-single-digit growth for the month on average.
Order Intake Down 9% Year-Over-year in July
Orders for the month were reported down 9% year-over-year compared to down 8% during the previous month, the largest monthly decline in the history of our survey (April 2011). “Other” dealers were the only brand to report growth on average for the month.
2014 Dealer Outlook Remains at Down 6% Year-Over-Year
For 2014, dealers are expecting a 6% decline in sales vs. 2013. Deere & Co. is forecasting the North America ag equipment industry to be down 5-10% in units in 2014, AGCO expects down 5%, and CNH Industrial is forecasting tractor sales flat to up 5% and combine sales down 20-25%.
New and Used Inventories Both Slightly Higher vs. Previous Month
A net 17% of dealers reported new inventories were “too high” in July vs. a net 16% last month. For used inventories, a net 39% of dealers reported levels “too high” compared to a net 37% last month, with the increase driven by mostly by large high horsepower tractors.