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Slow ag equipment market reflects tighter ag economy 

An ag economist says the continued slowdown in ag equipment purchases could be part of a larger trend in the ag economy.

David Widmar, with Agricultural Economic Insights, says 2021 to 2023 were some of the strongest years in ag equipment purchasing, but that’s changed.

“We have this expansion of capital production,” he says. “When the farm economy gets lean, producers trim that back and they switch to more repairs, and they offset purchases and hold onto that equipment longer. Some of that the decline is expected within that cyclical nature.”

He tells Brownfield it may not be a long-term trend. 

“There’s a lot of equipment inventory out there and we also see less volume of equipment being sold and shipped,” he says. “There’s definitely a contraction, but it’s hard to say how much of this is a structural shift. I don’t think we’ve crossed that threshold yet.”

Widmar says the ongoing uncertainty in the ag economy makes it difficult for farmers to make large capital investments.

AUDIO: David Widmar, Agricultural Economic Insights