GE Capital: Ag Equipment Outlook Positive After Stronger Seeding Season

According to a survey by GE Capital, dealers, manufacturers and suppliers of agricultural equipment felt better about the seeding season, which has raised expectations for the 2015 harvest.

Almost 75% of survey respondents thought the seeding season in 2015 was better or the same as last year, while 25% felt it was worse. In addition, 62% of respondents think this year’s harvest will be the better or same as last year and 35% thinking it will be worse.

“Weather is a huge factor in harvesting confidence; this year once again we had a cold spring, and the lack of rain in Saskatchewan has a major impact on the overall harvest season,” said Howard Shiebler, president of CDF’s Canada business. “However, seeding was generally more successful than last year, so farmers are cautiously optimistic about harvesting season and may need to upgrade or service their equipment to be ready.”

The optimism about seeding and the harvest carried over to the equipment sector as well. Fifty percent of survey respondents felt that equipment inventory levels were higher compared to last year, while 28% felt levels were the same, and about 19% felt that levels were lower. Last year, the majority of survey respondents felt that their inventory levels were about the same (48%) or higher (38%) than the previous year.

“Last year we saw a late seeding, which made for a quicker harvest and more equipment demands, so many dealers added more inventory to be prepared for equipment upgrades,” said Shiebler. “Some dealers probably have equipment left from last year and will look to move that product first. However we expect the inventory levels to balance out by the end of the year.”

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Terry Mulreany
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