Farmers Investing In Equipment

With corn and soybean prices more than 60% higher than in June, many farmers around the country are expected to invest in much-needed upgrades and machinery.

“The ag economy is strong right now compared to the general economy, and that breeds new investment,” said Brent Carpenter, an analyst with the Food and Agricultural Policy Research Institute at the University of Missouri. “Farmers are replacing and buying new and larger equipment, which is showing up not only in strong sales for larger tractors, combines and pickups but also grain bins and computers.”

The positive ag numbers have been noted by investors with Deere, seeing a stock surge that provided it a 52-week high of $79.66 in recent weeks.

Record low interest rates are also having an impact on equipment sales. “Those rates are just another incentive for farmers to be investing and making big purchases of fixed assets,” Carpenter said. ◆