Farm Equipment Forecast - KAIT Jonesboro, AR - Region 8 News, weather, sports

Farm Equipment Forecast

By Keith Boles - bio | email feedback

JONESBORO, AR (KAIT) --With the 2009 farming season over and the 2010 cycle about to begin, agricultural machinery manufacturers say sales could be down in 2010

But maybe not here in Region 8. The green and red dealers say 2010 may actually not be too bad.

Certainly every farmer has to stretch his dollars as far as they can go and not all will purchase new equipment. But the demand is there if not the supply.

Ronnie Bellomy the General Manager from Kirk Equipment in Paragould showed me around his snowy lot 3/4 full of new and used John Deere Equipment. He thinks the report is in error. Bellomy says he has orders waiting to be filled.

"Talk about this report about tractor sales being down. They haven't cut back production, It's a manufacturers nightmare to have all these orders and can't get them out. "

The report recently issued by the Association of Equipment Manufacturers says overall sales of 100-Horsepower and over,  4 wheel and 2 wheel drive tractors could be down 10 %.

At Town and Country International in Jonesboro General Manager Gaylor Orndorff says it's looking good for Case IH as well.

"Pre-sales and activity that we had this year is starting off much better than 2009 did."

Neither Bellomy nor Orndorff  necessarily agree with this report.

Bellomy, "Row crop tractors are also a big seller here in our area and that number tends to be up this year it looks like."

Orndorff says farmers may purchase tractors or combines simply because they may have more to spend than previously expected with the bad weather.

"That being a factor, they had good yields and it turned out to be a good year for them."

Jason Henderson works for the Federal Reserve Bank in Kansas City he says his bankers are looking for a good year.

"You could see an up-tick in equipment sales going forward with stronger profitability potential in 2010."

Bellomy says that if anything is going to be more flat lined in sales it's probably going to be these consumer orientated machines rather than the big farm tractors.

"You're 40 t0 60 horsepower tractors is where we're seeing some lower levels because it's more consumer driven."

Orndoff, "The economy has a big bearing on that because you're looking at weekend farmers, that type of application. That market has been down for several years."

How overall sales will go this year still remains to be seen. But dealers are hopeful.

Orndoff,  "If mother nature will cooperate I can see this being a much better year than 2009 was."

More than likely there will be farmers who change crops this year.

That switch will call for new or different equipment and perhaps trading off of machines that are no longer needed. 2010 could be an interesting year.

©2010 KAIT
A
ll rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Powered by Frankly