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Farm equipment sales decline again, RMI survey says

An economist with Creighton University says the global economy is impacting farm machinery sales.

Ernie Goss says the latest Rural Mainstreet Index shows ag equipment sales slumped below growth neutral for the eighth time in the past nine months.

“Farmers are still looking out there and not buying equipment,” he said. “Their optimism is not strong because of higher interest rates. That is resulting in lower rural retail sales.”

But he tells Brownfield, “I think we are reaching a bottom there,” he said. “What’s going to turn this around is the Federal Reserve is probably going to reduce interest rates, but unfortunately that’s not going to come until June or July of this year.”

Goss says weaker grain prices are also having a negative impact on equipment purchases.