Corn, soybean and wheat production has increased 50% since 1990 while farm diesel use remained essentially unchanged due to advances in equipment and powertrain technology.
According to the Economic Research Service of USDA May 2018 Oil Crops Outlook report, in the 2018-19 marketing year (Sept.–Aug.), total U.S. exports of soybeans (whole, meal and oil) are expected to increase by over 8% provided normal trade relations with other countries.
North American large ag equipment sales were relatively flat year-over-year in March. Row-crop tractor sales saw growth in both the U.S. and Canada, while 4WD and combine sales saw declines, according to the latest numbers released by the Assn. of Equipment Manufacturers.
If China enacts their announced tariffs on U.S. ag products, farm equipment dealers and manufacturers will feel it just as acutely. Already jittery about making capital investments, putting the proposed tariffs into effect, farmers could easily decide to put off replacing that tractor for another year.
USDA increased its estimates of corn and soybean yields and wheat production in its Nov. 8 World Agricultural Supply and Demand Estimates report, which most analysts agree was another bearish sign for farm machinery sales in the year ahead.
USDA raised its estimates of corn and wheat ending stocks, but cut its soybean forecast with its September 12 World Agricultural Supply Demand Estimates report.
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In this episode of On the Record, brought to you by Associated Equipment Distributors, we take an initial look at the Dealer Business Outlook & Trends Report and what dealers are forecasting for 2025.