New Zealand Tractor and Machinery Assn. (TAMA) president John Tulloch said sales of tractors are up 17% year-to-date at the end of September and could set a record by year-end.
The uncertainty that accompanied the current tariff disputes has produced a black cloud over future tractor and equipment sales. In spite of those concerns we continue to see some strength in the larger tractor categories and in combines this year.
The strength of the U.S. economy continues to provide support for the smaller tractor sales but the recent declines in the stock markets will have a sobering effect upon some future purchases.
Looking back, 2017 will most likely be viewed as the turning point in agricultural equipment sales for this cycle. While there will probably remain some weakness in the larger tractors and combines in 2018, there are definite signs of a bottom developing.
Our models track commodity prices, international currency exchange rates, total number of farms, total number of farms by gross production value. Here is our 2018 U.S. forecast and the rationale of how we arrived at those numbers.
2017 continues to appear to be a base-building period and, while large tractors are woefully below our original forecast, there is some evidence that they won’t go much lower in 2018.
Growth of farm equipment sales in October was the highest in nearly 7 years, according to the latest sales figures reported by the Assn. of Equipment Manufacturers.
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In this episode of On the Record, brought to you by Associated Equipment Distributors, Deere Director of Investor Relations Josh Beal told JP Morgan analysts that the OEM is confident it will be “producing to demand” in fiscal year 2025.