The ag equipment market began a downward trend a year ago. Dealers say that 2024 might be their roughest year since COVID in 2020.
The “Dealer Business Outlook and Trends Report” shows a combination of recovering inventories, high interest rates, and a general economic downturn that has dealers preparing to weather a storm in 2024. The new survey showed a significant drop in optimism in dealers’ new and used whole goods revenue forecasts, while parts and service revenue forecasts hit record highs. The dealers aren’t facing the kind of equipment shortages that dampened their optimism in the previous report, but price increases remain a factor despite falling from 2022 peaks.
There is some degree of optimism remaining based on healthy farm financials and solid commodity prices. However, the question of how much cash farmers will bring into the new year remains in question. Revenue projections are negative as demand declines.
