Flicker Of Market Optimism Has Producers Reassessing Equipment Plans

A modest rebound in prices and improving cash-flow expectations are prompting some farmers to reconsider equipment investments as harvest gets underway. Retail values for John Deere 8R tractors have risen 2.5% to 5% in the past 60 days, but high new-equipment prices are pushing many producers toward precision technology and retrofits that extend the capabilities of older machinery. Farmers are also operating fewer machines for longer hours, increasing the importance of keeping existing equipment productive.

The shift creates opportunities for farm equipment dealers, used equipment dealers, precision agriculture and technology providers, equipment parts and repair businesses, agricultural lenders and other agribusinesses. Sellers can help these advertisers reach farmers who may have more money to invest but are still carefully weighing whether to buy, upgrade, finance or repair equipment.