In the U.S., 100+hp 2WD tractors, and 4WD tractors grew year-over-year. Both segments, along with self-propelled combines remain positive for the year. The biggest overall growth among tractors happened in 4WD units, growing more than 113 percent in September. In Canada, 4WD sales finished the month in a similar position, up more than 91 percent.

“With the technology in today’s equipment, it’s no surprise to see the 4WD segment continuing to grow as farmers look to increase their yields. This segment has been strong all year, as farmers are continuing to invest in productivity gains for their operations.”

said Curt Blades, senior vice president, industry sectors and product leadership at the Association of Equipment Manufacturers.

Overall unit sales of U.S. tractors are down 4.3 percent compared to sales in September 2022, with 100+hp 2WD units being the only other growth segment, while combine sales finished nearly flat, only selling 8 fewer units than the previous year. Canadian tractor sales fell nearly 14 percent, with combines declining more than 37 percent.

Year to date at the end of the third quarter of 2023, combine sales overall are positive, up more than 25 percent, while tractors altogether are down just over 8 percent in the U.S. Year-to-date Canadian tractor unit sales didn’t change pace much versus the previous month, now down just over 14 percent, while combines are up 16.5 percent.

Source: AEM

The post AEM Data Reveals Significant Growth in 4WD Ag Tractor Sales in U.S. and Canada appeared first on North America FarmQuip Magazine.

“This investment demonstrates Yanmar’s continuing commitment to the important Texas market. With this new regional distribution center, Yanmar America is committed to offering exceptional purchase and ownership experiences to our customers and we will continue to support our dealer partners to provide parts and service support.”

said Yanmar America president, Jeff Albright.

The regional distribution center was opened in cooperation with Yanmar Flagship Dealer “Tractor Bob’s” and will distribute Yanmar’s versatile, high-quality YM, YT and SA series tractors and the company’s Bull and Brahma series UTVs. The center, which will also ship a wide range of tractor attachments and spare parts, is expected to streamline dealer operations by reducing the need to maintain high levels of inventory on-site, while at the same time, significantly reducing lead times for delivery of products to customers.

Source: Yanmar

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The transfer of cab production from its Tractor and Cab assembly operations facility to the components plant in Ramos, Mexico is expected to be completed by 2024, impacting about 250 employees.

“The decision to move cab production ensures the company can balance workforce needs within the tight labor market, while also ensuring Waterloo can open up floor space to manufacture new products”

the company said in a statement.

An acute shortage of workers is boosting wage growth, increasing costs for U.S. manufacturers who are already dealing with inflationary pressures.

The post John Deere Moves Cab Production to Mexico Due to a Tight Labor Market in the U.S. appeared first on North America FarmQuip Magazine.

As Danny Munch, American Farm Bureau Federation Economist points out, this new ERP program is basically a revamped version of the old WHIP+ program and will provide six billion [dollars] in ad hoc disaster assistance for producers who experienced qualifying losses from severe weather events in 2020 and 2021. ERP includes losses from events like wildfires, hurricanes, flooding, freezes, derechos, and also drought under the D3 and D4 categories, as well as D2 after eight consecutive weeks. It also covers losses from related conditions that occurred concurrently to major disasters like smoke exposure during wildfires.

This is supposed to happen within the next few weeks. Producers will then have to return their completed and signed prefilled applications to their local FSA office and should expect to receive payments in June-July. Producers who did not have crop insurance or NAP coverage, did not receive an indemnity, or had an area-based policy, will not be sent a prefilled application.

Again, for those that qualify under phase one of ERP, they will be sent prefilled applications based on their existing FSA information. For those that don’t get a prefilled application, they unfortunately will have to wait for information on Phase Two of the program to be announced. Also, we have a few payment examples available on our Market Intel website for farmers to review and see how they might be able to benefit.

The post US Agricultural Department Releases New Recovery Program to Cover Natural Disaster Losses appeared first on North America FarmQuip Magazine.

U.S. total farm tractor sales fell 21.1 percent for the month of March compared to 2021, while U.S. self-propelled combine sales for the month dropped 10.2 percent to 343 units sold. The 100+ horsepower 2WD segment was the lone growth sector in the U.S. market, up 7 percent, while mid-range tractors between 40 and 100 horsepower fell 14.1 percent, and the sub-40hp segment led losses, down 25.5 percent. 4WD tractors were nearly flat for the second month in a row, dipping down just 2 percent, or four fewer units sold for the month. Total farm tractor sales are now down 7.9 percent year-to-date, while combines are down 19.2 percent for the same.

In Canada, unit sales fell in all segments for a 5.1 percent decline in total farm tractor sales, led by 4WD units, down 43.3 percent, however, total 2WD unit sales were down in every segment, but down only 3.7 percent overall. Combine harvesters were down as well in Canada, falling 36.8 percent to 60 units sold. Year-to-date farm tractor unit sales are down a slight 0.7 percent in Canada, while harvesters are down 36.2 percent.

“This is a sales report we expected. Inventory levels are down more than 10 percent in both the U.S. and Canada, and this is the result of supply chain difficulties catching up with this segment of the manufacturing industry.”

said Curt Blades, senior vice president, industry sectors & product leadership at the Association of Equipment Manufacturers.

Source: AEM

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Growth in Crop Receipts Forecast for 2022

Crop cash receipts are forecast at $248.6 billion in 2022, an increase of $12.0 billion (5.1 percent) from the forecast for 2021 in nominal terms. Growth in receipts for corn, soybeans, wheat, and cotton are forecast to account for almost all of the net increase, while receipts are expected to fall for fruits and nuts.

Corn receipts are forecast to increase by $3.4 billion (4.8 percent) in 2022, resulting from higher quantities sold. Soybean receipts in 2022 are expected to increase $4.6 billion (8.9 percent), as forecasted growth in quantities sold should outweigh effects of lower prices. Cotton receipts are forecast to increase by $2.5 billion (33.8 percent), driven by growth in both prices and quantities sold. Expected growth in quantities sold should result in a gain in wheat receipts; they are forecast $1.2 billion (10.6 percent) higher in 2022.

Vegetable and melon cash receipts are expected to grow by $0.4 billion (2.5 percent) in 2022, as higher forecasted prices should outweigh a decline in quantities sold. This increase includes a rise of $0.2 billion (6.1 percent) in potato receipts. Cash receipts for fruits and nuts are expected to fall $1.2 billion (4.8 percent) in 2022, as the effects of falling prices should be larger than growth in quantities sold.

Animal/Animal Product Receipts Forecast to Increase in 2022

Total animal/animal product cash receipts are expected to increase $17.4 billion (8.9 percent in nominal terms) to $213.3 billion in 2022. Growth in receipts is forecast for milk, cattle and calves, and broilers, while hog receipts are expected to decline.

Milk receipts are expected to increase $9.3 billion (22.1 percent) in 2022, mostly due to expectations for strong price growth. Similarly, forecasted higher prices should drive an increase of $6.2 billion (8.5 percent) in receipts for cattle and calves. Lower prices are expected to result in a decline of $2.8 billion (10.3 percent) in hog cash receipts in 2022.

Broiler receipts are expected to increase $4.0 billion (12.3 percent) in 2022, mostly due to higher expected prices. Receipts for turkeys and chicken egg cash receipts are each forecast to increase 3 percent in 2022 relative to 2021 in nominal terms but fall when adjusted for inflation.

Expected Growth in Prices and Quantities Sold Raise 2022 Cash Receipts Forecast

To better understand the factors underlying the forecast change in annual receipts from 2021 to 2022, we separate the change into two distinct effects: a “price effect” where we project the change in cash receipts associated with holding the quantity sold constant at 2021 levels and allowing prices to change to forecast 2022 levels, and a “quantity effect” where prices are held constant from 2021 and quantities change to forecast 2022 levels. In 2022, both increasing prices and quantities sold are expected to have positive effects on cash receipts. Overall, crop and livestock sector cash receipts are forecast to increase $29.3 billion in 2022, with an estimated positive price effect of $14.3 billion, and a projected positive quantity effect of $14.0 billion. In addition, an upward shift of $1.1 billion is from forecasts for commodities whose price and quantity effects cannot be separately determined. As discussed above, we do find divergence in these effects by commodity group. Price effects on cash receipts for livestock commodities are positive, while quantity effects are slightly negative. Conversely, quantity effects on cash receipts for crops are positive, while price effects are negative.

Direct Government Farm Payments Forecast to Decrease in 2022

Direct Government farm program payments are those made by the Federal Government to farmers and ranchers with no intermediaries. Typically, most direct payments to farmers and ranchers are administered by the USDA under the Farm Bill or other authorities. Direct payments can also be from ad hoc and supplemental programs authorized by Congress. Government payments do not include Federal Crop Insurance Corporation (FCIC) indemnity payments (listed as a separate component of farm income) and USDA loans (listed as a liability in the farm sector’s balance sheet). After reaching a record high of $45.7 billion in 2020, direct Government farm program payments are forecast to decrease to $27.1 billion in 2021 and to decrease further to $11.7 billion in 2022. This overall decrease in 2021 and 2022 reflects lower anticipated payments from supplemental and ad hoc disaster assistance, mainly direct payments from COVID-19-related assistance programs.

Production Expenses Forecast to Increase in 2022

Farm sector production expenses—including expenses associated with operator dwellings—are forecast to increase by $20.1 billion (5.1 percent) to reach $411.6 billion in 2022. This follows a 9.4 percent increase in nominal expenses in 2021. If these forecasts are realized, 2022 production expenses would be the highest since 2015 yet still 11.1 percent below the 2014 peak in inflation-adjusted terms.

Nearly all expense categories are forecast to rise during the year, with the most significant increases in nominal terms for the following categories:

• Feed expenses, the largest single expense category, are forecast to increase in 2022 by $3.9 billion (6.1 percent) in nominal terms to $68.9 billion because of higher prices for feed commodities.

• Fertilizer-lime-soil conditioner expenses are forecast to increase by $3.4 billion (12.0 percent) in nominal terms to $31.9 billion.

Among the main expense categories, seed expenses are expected to remain unchanged, while the net rent to landlords is expected to decline by $1.2 billion (6.6 percent) to $17.6 billion, in nominal terms.

Source: USDA

The post Net Farm Income: Analysis and Expectations for 2022 appeared first on North America FarmQuip Magazine.

U.S. total farm tractor sales climbed a healthy 8.7 percent in November compared to 2020, while U.S. self-propelled combine sales saw a gain of 37.8 percent, the fourth month in a row of growth near or above 20 percent for harvesters. All segments except articulated 4WD units grew in the month, led by the 100+hp segment, up 30.9 percent. Articulated 4WD units fell 23 percent on the month but remain more than 17 percent positive year-to-date. Year-to-date farm tractor sales are up 11.3 percent and combine growth climbed to 25 percent.

For Canada, November was a mixed bag, with tractors climbing 1.3 percent in aggregate, while harvesters fell 56.8 percent, bringing combined tractor and combine sales down 0.7 percent, or 18 total units. Segment-by-segment, sales in Canada were like the U.S., with articulated 4WD sales falling 52.8 percent, while 100+hp 2WD units led gains at 20.2 percent. The only segment difference was sub-40hp units which fell 2.5 percent in Canada while growing 6.8 percent in the U.S. Still, both tractors and combines remain above 20 percent growth year-to-date in Canada, with tractors up 20.5 percent, and combines up 28.1 percent.

“Both tractors and combines continue to see year-to-date growth in the double-digits demonstrating that farmer demand and optimism remains strong. While supply chain issues are still causing some bumps, our members continue to do all they can to deliver the parts and products to the market,”

said Curt Blades, senior vice president, industry sectors & product leadership at the Association of Equipment Manufacturers.

The full reports can be found in the Market Data section of the AEM website under Ag Tractor and Combine Reports.

Source: AEM

The post US Tractor and Combine Sales Continue Growth; Canada Slows Slightly appeared first on North America FarmQuip Magazine.

“We would like to thank Leif for his many years of dedication, positive business results, and personal commitment. The Americas Region has definitely contributed to the growth of Claas,”

said Christian Radons, member of the Group Executive Board for Claas KgaA.

“Succession planning has been a priority of mine for quite some time. We have made significant progress in people and structure at our operations in the Americas. I think we have come up with a winning combination of talent to continue the growth for Claas in the region. This is the right time to pass on the leadership to Eric Raby,”

explained Leif Magnusson.

Raby joined Claas of America in 2015 and has been the President and GM – Sales for Claas of America during that time. In addition to his responsibilities at Claas of America, Eric will assume leadership of Claas sales companies in Brazil and Argentina as well as importer markets throughout Latin America.

“There are certainly big shoes to fill in this new role, but Leif has equipped me and the entire team with the confidence and drive to continue the positive trajectory that has been established for Claas in North and South America under his watch,”

said Eric Raby.

The post Leadership Succession at Claas in the Americas appeared first on North America FarmQuip Magazine.

U.S. total farm tractor sales fell 0.8% in July compared to 2020, while U.S. self-propelled combine sales jumped 19.2% to 657 units sold. The sub-40hp reduced its decline, down only 4.4%, while the mid-size 41-100 hp segment was nearly flat, down 0.4% or only 26 units.

All other segments were positive, with the articulated 4WD segment leading the way for the third straight month by climbing a healthy 79.4% to 287 units sold. The 100+hp 2WD segment also grew 37.8%. Year-to-date farm tractor sales remain up 13.7% and combine up 12.6%.

For Canada, July monthly tractor and combine sales were positive across all segments, including in the sub-40hp segment up 0.2% or 3 units, with the biggest growth in four-wheel-drive units nearly doubling, up 93.8% to 62 units sold, while total farm tractor sales were up 14.8% and self-propelled combines up 59.8%.

“The story of these row-crop and articulated four-wheel-drive sales is a reflection of farmer optimism throughout North America. We’re glad to see the smaller units start to return to pace, but these big units selling are often six-figure investments for farmers, and farmers don’t make these sorts of investments without serious consideration of future market conditions,”

said Curt Blades, Senior Vice President of Ag Services at the Association of Equipment Manufacturers.

Source: AEM

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U.S. total farm tractor sales climbed 9.9 percent in August compared to 2020, while U.S. self-propelled combine sales jumped 19.8 percent, the second month in a row of growth near 20 percent for harvesters. The sub-40hp returned to positive, growing 8.7 percent, while the mid-size 41-100 hp segment was up 5.4 percent. Heavy-duty units saw significant growth, with the articulated 4WD segment leading the way for the fourth straight month by climbing a healthy 40.4 percent to 306 units sold. The 100+hp 2WD segment also grew 37.8 percent, the exact same as last month. Year-to-date farm tractor sales remain up 13.3 percent and combine up 13.8 percent.

For Canada, August monthly tractor and combine sales were a mixed bag. The sub-40hp segment was up 5.8 percent while the biggest growth sector was in articulated four-wheel-drive units growing significantly, up 77.8 percent to 16 units sold. Total farm tractor sales were up 1.9 percent and self-propelled combines were up 28.7 percent.

“We are pleasantly surprised by the return to growth for small units in both the U.S. and Canada and by a healthy rate. In addition to the continued growth of the big row-crop units, I think the interesting story is harvesters, up nearly 20 to 30 percent in their respective markets. Farmers investing in more of these big machines is another indicator of that farmer optimism we’ve been seeing.”

said Curt Blades, senior vice president of agriculture services at the Association of Equipment Manufacturers.

Source: AEM

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