Should Minnesota Farmers Buy New Equipment Now?

Car prices have been a lot higher over the last few years. This fact has caused some people to hold on to their vehicle longer because prices have gone up so much. 

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The increased pricing extends to farm equipment as well. But farmers who need to buy new equipment could be getting a break. The cost of falling crop prices has left dealers of farm equipment with an inventory that is not selling. 

According to a report from The Morning Brew, who shared an article from Reuters that says that in Illinois, Farm Equipment Dealers are taking certain measures to sell what they have and maybe even help farmers. 

In Illinois, some equipment is being auctioned off at reduced prices, or offering discounts to make it more affordable for farmers to either upgrade their equipment or get what they need to do their jobs more efficiently.  

New orders from these dealers have been suspended for the time being as we are in a time that is seeing corn and soy prices fall to a three-year low.  

Reuters interviewed ten equipment dealers in the Mid-West as well as some farmers and some industry analysts and they all say that interest rates have made it very difficult for farmers to buy new equipment, which in turn is impacting profits of those in the farm equipment business.  

A Wisconsin dealer told the media outlet that their inventory has risen 35% since the end of 2023. Polaris, CNH, and ACGO are among the companies that have seen new orders from dealers halted.  

Again, this could be a benefit to farmers, but like many things in life, this is a double-edged sword. If dealers are not selling like they did, how does that affect the jobs they provide? 

And for the manufacturers, how does not having new orders impact the employees they have on their payroll.  

Farming has always been one of our country’s hardest industries to make a living, and it seems that it continues, at least for now.