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Dealers Forecast Revenue, Unit Sales Growth for 2021

It’s been a strange year for dealers to say the least. They’re facing the long term effects of a global pandemic and ongoing low commodity prices, as well as an election year in the U.S. In spite of all that, results from the Ag Equipment Intelligence 2021 Dealer Business Outlook & Trends survey show dealers not only beat last year’s estimates for sales in 2020, but they’re now predicting greater revenue growth in 2021 than they did for 2020.
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USDA Reports Farmland Values Remained Stable in 2020

The value of farmland is an important economic indicator for the agricultural business because it represents most farmers’ highest valued asset. Steady or rising farmland values along with low interest rates have been positive trends for farmers, particularly in light of lower commodity prices in the past several years. Stable farmland prices have remained the one positive during these years of major challenges for U.S. farmers.
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Rise in Early Orders Bullish for Ag Equipment Sales

In a note to investors, Stanley Elliott of Stifel said, “We wanted to highlight a survey from Ag Equipment Intelligence which suggests early order activity for North American ag equipment is pointing to a slight increase on a weighted average basis following 6 years of declines.
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Farmers’ 2020 Bottom Line Padded by Highest Federal Aid Ever

Overall, U.S. farmers are expected to end up in the black for 2020, largely due to government payments aimed at lessening the impact of the COVID-19 pandemic. According to USDA economists, net farm income (NFI) is forecast to increase $18.3 billion (up 21.7%) from 2019 to nearly $103 billion in the current cropping year.
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Why USDA is Forecasting Higher Farmer Profits in 2020

On Sept. 2, USDA’s Economic Research Service (ERS) released its updated Farm Sector Income and Finances report and projected that farm profits would improve in 2020 relative to 2019. According to the ag agency, the improving bottom line for farmers will result from slightly higher crop receipts, lower production expenses and a hefty increase in government assistance.
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Each monthly issue of Ag Equipment Intelligence is like getting one-on-one personal advice from the world's most trusted ag equipment industry experts. Advice that hasn't been watered down or distorted by outside influence, providing the latest and most insightful farm equipment analysis. AEI explores where the ag equipment industry is going — not just where it's been. No filler. No bias. No conflict of interest. You can access the PDF issue archive by clicking here.

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