Analysts Says Ag Equipment Sales Will Be Strong Into 2010

Farm Equipment magazine reported that with the current economic troubles, many financial analysts see farm equipment sales peaking during the first half of 2009. But, based on historic trends, a continuing strong demand for food and fuel and the aging of the American farm fleet, one analyst is projecting solid sales at least through the first half of 2010.

Despite the economic uncertainties prevailing in the U.S. economy, Barry Bannister, analyst for Stifel Nicolaus, says farm equipment sales will maintain momentum through the first half of 2010. In a report to investors, Bannister bases his analysis on historic trends for the Producer Price Index, which he says has not yet peaked, as well as the average age of the American farm fleet, which he says is “old” and will need to be updated soon.