Association Equipment Manufacturers (AEM) Industry Factors Affecting Future Growth

November 18, 2008 11:05 AM

The AEM ag equipment industry outlook asks farm equipment manufacturers to rate anticipated changes in more than 18 factors that have emerged as significant influences on machinery sales. For the U.S., more than 60 percent anticipate an increase in planted acreage and an increase in grain exports in 2009.

For U.S financial factors, slightly more than 50 percent of respondents anticipate credit availability to remain about the same, with another 32 percent expecting a modest decline. Some 52 percent expect interest rates to remain the same, with 35 percent saying they will increase modestly.

Some 47 percent predict U.S. farm cash receipts will be modestly up, and 30 percent say they'll stay about the same. Net U.S. farm income is anticipated to be modestly up by 55 percent of respondents, while 24 percent predict a modest decline.

Replacement demand for equipment in the U.S. is expected to remain the same (44 percent of respondents) or increase modestly (47 percent).

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