AG Equip Industry Doing Well

A farm equipment sales index, compiled by Creighton University, rapidly expanded to a reading of 75.9 this month, from 63.5 in February. (Any reading above 50.0 indicates market expansion.) The figure, which was higher than the reading at the peak of the 2007-2008 farm commodities boom, reflected overall farm profitability.

“Farm implement producers and dealers are experiencing a banner year as farmers spend their higher incomes,” said Creighton economist Ernie Goss.

The comments follow forecasts from equipment groups of modest, if any, improvement in U.S. sales this year — at least, in volume terms — after a strong 2010.

Deere & Co. has predicted a 5% rise in tractor industry sales in North America this year, with rival AGCO, forecasting a “flat” market. And industry data for February, shows a mixed market, with sales of utility tractors growing by 15%, and combines by 34%, while large tractors saw an increase of only 1% and deals on row-crop tractors fell 9%, according to Deere.

The Creighton report is based on responses from bank chief executives in 10 U.S. states. Goss will be speaking at next week’s Spring Management Clinic in Tampa. It’s not too late to register for this informative meeting. Register online at FarmEquip.org/Spring_Clinic. ◆