News
Farm equipment sales drop for 18th straight month
An ag economist says farm equipment sales continue to struggle.
Ernie Goss with Creighton University says the farm equipment index has fallen below growth neutral for an 18th straight month in the latest Rural Mainstreet Index. “That’s a real concern, particularly for Iowa where you’ve got an equipment sector that’s got very important linkages forward to the farm and backward to the metal producers.”
The index is a monthly survey of ag bankers in 10 states including Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, and South Dakota.
Goss tells Brownfield the lack of demand has led to an increasing number of job layoffs in the industry. “We’ve seen it now for several months. There’s a squeeze on some of the manufacturers and also the retailers out there that sell to the farmer.”
He says high input costs, tighter credit conditions, and weaker grain prices are having a negative impact on farm equipment purchases.
AUDIO: Creighton University economist Ernie Goss
Add Comment