Used Farm Equipment Values More Vulnerable Than Farmland

U.S. agriculture could dodge the long-feared collapse in farm real estate prices this commodity cycle, suggest economists, but some cautioned another bubble may burst: the value of used farm equipment.

“Land values haven’t seen near the pullback that everyone predicted,” observed Bruce Sherrick, director of the TIAA-CREF Center for Farmland Research at the University of Illinois, during conversation at a recent Farm Foundation meeting.

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Resources for Members

Every other year, our Association has purchased the complete ASABE Standards and Engineering Practices Data and made that $549 resource available to our manufacturing members at no cost.

The 2016 edition is now available and will be sent to any regular member company requesting a copy, while supplies last.

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Dealer News

Stotz Equipment has reached an agreement to purchase the assets of Christiansen Implement. – CLAAS of America will open a third Canada West Harvest Centre location – Atlanta Kubota recently hosted a grand opening of its new facility in Marietta, Ga. – Matsqui Ag Repair, located in Abbotsford, B.C., has joined JCB’s dealer network as Matsqui JCB

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Association Expands Benefits for 2017

In response to economic challenges facing many members of the Farm Equipment Manufacturers Association, its board of directors has decided to expand benefits.

“The Association recognizes that during this economic downturn, the services it offers members become even more crucial,” said Vernon Schmidt, executive vice president. “We will double down on our efforts to serve as advocates for the shortline industry, and we will continue to look at opportunities to bring greater value to our members.”

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Farmers Feel Squeeze From Lenders

With the farm slump moving into its third year, banks have become more cautious about approving loans to farmers, requiring some growers to offer more collateral and sometimes denying financing outright to others who need it for seeds, crop chemicals or rent.

Farmers typically take out loans in the first three months of the year before spring planting begins. But this year, growers, including some who have been turned away by their primary lenders, have been searching for financing as late as April.

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Glyphosate is Unlikly Carcinogen

The pesticide glyphosate, sold by Monsanto in Roundup weed killer, is unlikely to cause cancer in people, according to a new safety review by United Nations health, agriculture and food experts.

The U.N.’s Food and Agriculture Organization (FAO) and World Health Organization (WHO) said glyphosate is “unlikely to pose a carcinogenic risk to humans” exposed to it through food.

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Association Commits to Serving, Supporting Members

This issue of Shortliner is a collection of current news stories that reinforce what we have long known: These are challenging days for many in the agriculture industry.

In the context of these circumstances, the Association has doubled down on its commitment to serve members and bring value to their membership.

This single priority will frame the conversation when the Association’s Board of Directors gathers in two weeks for its summer meeting. This is one of three meetings a year in which the full board convenes. It also is the meeting in which the board approves the budget for the 2017 fiscal year and affirms our priorities for the coming year.

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In Memoriam

Terry Schruth, retired president of Pepin Farm Implements, died May 19. He was 88.

Schruth was president of the family business from the mid-1960s until 1991. The harrow manufacturer is today under the ownership of the family’s fifth generation.

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EDA Releases Survey Results

The Equipment Dealers Association (EDA) in May released its 2016 Dealer-S Manufacturer Relations Survey Report. In this year’s survey, equipment dealers were asked to rate up to seven manufacturer lines they carry based on 12 criteria related to operations and support.

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S3 Appoints General Manager

S3 Enterprises recently welcomed Al Marques as General Manager for S3 Manufacturing and S3 Blowers in Swift Current, Saskatchewan.

CEO Richelle Titemore said Marques has a unique background in metallurgy and air flow technology that is a “strong complement to these two S3 business units in particular.”

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Deere Releases Q2 Numbers

As of April 30, sales of equipment in Deere’s agriculture and turf division were down by 5 percent for the first half of the fiscal year. Comparing quarters, sales were roughly the same. A news release from Deere says that the six-month decline is largely the result of lower shipment volumes.

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