Data & Trends

Non-Real Estate Farm Loan Volumes by Purpose

Farm Lending Spikes in 3Q, Equipment Loan Volumes Increase

The Kansas City Fed reports the total volume of non-real estate farm loans in the third quarter was more than 30% higher than one year ago. Although this spike in farm lending was driven primarily by operating loans, lending volumes increased notably for the purpose of buying farm machinery.
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September 2018 Tractor & Combine Analysis

The limited cash available to farmers and ranchers in the U.S. will continue to put a dampener on the equipment markets in 2018 and 2019. The expanded depreciation programs that appeared in 2010 and reached its zenith in 2014 had the effect of pulling ahead purchases from future years. We are now enduring the results of that program.
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Improved 2018 Sales Sets the Tone for 2019 Outlook

After several difficult years, it looks as if U.S. and Canadian farm equipment dealers are back on firm footing. With that said, probably the best thing the industry can do moving forward is to not compare current conditions to the boom years of 2008-14, which were not typical, and acknowledge that the ag equipment business is actually returning to a more normal state.
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Impacts of Trade Tensions on Dealers

North American Dealers Expect Trade Tensions Will Hurt Business

Over the past several months, the U.S. has enacted tariffs on other nations and those countries have in turn retaliated with trade restrictions of their own. This prompted Ag Equipment Intelligence editors to add a question regarding these trade disputes as part of the 2019 Dealer Business Outlook & Trends survey.
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Dallas Fed: 3Q18 is 12th Consecutive Quarter for Declining Ag Loan Demand

According to the recent quarterly agricultural credit conditions survey, a net 7.2% of respondents reported demand for non-real estate farm loans decreased in the third quarter relative to the same time period last year. Specifically, 18.9% of respondents reported a decrease in loan demand and 11.7% said demand had increased during the quarter. Farm machinery loans were among the types of loans that saw the biggest decreases in volume for the third quarter, with a net 16.5% of bankers reporting decreases.
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September Ag Economy Barometer Chart

Survey Shows Ag Economy Expectations Worsening

The September survey results were released on Tuesday and found that lingering concerns with trade disputes, combined with record yields due to unusually favorable weather conditions this summer, led to significant declines in farmer sentiment.
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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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