Brenda O’Farrell
The Advocate
New farm equipment sales are expected to slow in 2024, according to the latest analysis by Farm Credit Canada.
The predicted dip in sales is due to a combination of higher interest rates, elevated equipment prices and a drop in commodity prices, the FCC says.
Challenges in the livestock sector are fuelling the cautious purchasing decisions expected for 2024 due to drought in western Canada and what is being described as “tighter revenues” in the hog and dairy sectors in eastern Canada.
Strong equipment sales in 2023 were recorded, reflecting the resolution of supply-chain issues and record-high crop receipts in 2022 and the first half of 2023, the FCC reported.
The drop in demand for equipment will be seen most in the category of lower horsepower tractors.
Cutline:
Chart outlines the percentage growth and decline in sales of the different categories of farm equipment over recorded and expected in 2022-2024.