Ag Equipment Fundamentals Still Not Well Understood

Despite robust U.S. tractor sales in recent years, overall tractor sales remain far from their 2004 and 2005 peak. Nonetheless, in terms of dollars, ag equipment shipments remain strong and healthy. 

In a May 11 note to investors, Ann Duignan, machinery analyst for JP Morgan, says, “ag fundamentals are not well understood” by many observers of the industry.

She points out U.S. sales of high horsepower tractors last peaked in 2004 and 2005, when crop…

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