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2016 Logan County Fall Farm Outlook Magazine
Lincoln Daily News
Oct. 27, 2016
17
The low grain prices appear to have less effect
on sales of small tractors. Charlie Glass of the
Farm Equipment Manufacturers Association
says, “Small tractors that are typically purchased
by lifestyle farmers and other smaller production
farmers continue their winning ways and those
dealers are experiencing a very good year.”
For the most part, sales of small tractors have
increased around the United States. AEM says,
“U.S. retail sales for 2WD tractors under 40HP
gained 16.8 percent in September (compared
to last year), with year-to-date sales up 11.7
percent.”
However, Glass predicts lower sales will
continue for other products. He says, “Dealers
in the major farming areas of the country
continue to see declining demand for their
products now and in the near future.”
The lower sales may be offset somewhat by
the increase in tractor sales. A second quarter
report by AGCO says, “Higher industry sales of
small tractors, due to more normal conditions in
the livestock sector and general economy, have
provided a partial offset to the decline in large
agricultural equipment.”
How low grain prices have affected
dealerships like Rohlfs Equipment
Like other dealerships around the country,
Rohlfs Implement in Hartsburg has felt the
affects of low grain prices on equipment sales.
Rohlfs Implement has been serving area since
1946 and carries the AGCO product line, which
includes the Kubota, Massey Ferguson, Versatile
and White brands.
Rohlfs Equipment has a fairly large inventory of
various equipment in stock including gleaners,
harvesters, combines, tractors, planters, and
sprayers.
Les Rohlfs of Rohlfs Implements Company
says “Ag sales are definitely down this year.
Especially new high dollar units such as
combines & tractors and late model used
equipment.”
Rohlfs said, “Low to medium priced items
are steady for both new and used equipment,”
adding that new compact tractor and mower
sales are up from last year.
Rohlfs said, “I expect Ag equipment sales to be
flat unless the grain markets improve.”
The data from equipment manufacturers show
similar concerns and expectations.
Despite many concerns, some analysts feel
more optimistic. In a February 2016 report,
Rabobank analysts Kenneth Zuckerberg and
Sterling Liddell said, “In 2017, the crop cycle is
anticipated to rise out of the trough and farmers
will begin to reestablish planting disciplines and
optimize yield, leading to a return of profitability
and equipment purchasing.”