As commodity prices fall, one of the first places farmers cut costs is purchasing new equipment. A February report from Rabobank anticipates that commodity prices will stabilize to near break-even levels. By 2017, they say the crop cycle should swing upward, and that will lead to a return of equipment purchasing. Rabobank says growers have been reducing equipment purchases for two years. They anticipate seed companies will gain the most traction as farmers continue to try to cut costs while increasing yields year-over-year. Rabobank says successful equipment manufacturers should emphasize how their equipment will improve farmers’ efficiency and return on investment.
Source: NAFB News Service