BLUE GRASS, Ia. (KWQC)- Rob Ewoldt sat in the driver’s seat of his older combine mowing nearly 650 acres of corn and 500 of soybeans to wrap up his harvest season. The farmer of 20 years said he hadn’t purchased new equipment in quite a while, but rather upgraded and made repairs to combines he already owns.
“We can fix the equipment that we have and try to go one more year with that and then and if prices get better and yields come up higher than we’ll be able to buy some newer equipment.”
A new report from the Association of Equipment Manufacturers shows large farm equipment sales are down nearly 20 percent than what they were during October of 2015. Financial Analyst, Jim Victor, assesses trends in farm equipment sales and said this is a long-standing pattern.
“Farm equipment sales particularly, large farm equipment sales have been in decline for three years, that trend has been continuing.”
Due to low commodity prices, Victor said farmers are not making enough money to spend on new equipment. Ewoldt rents the land that he farms on, and said the cost of paying rent combined with the low commodity prices presents an ongoing challenge.
“Having to borrow money and not owning land it makes it very difficult right now to try to think about purchasing a $200,000 tractor.”
However, for those considering purchasing new equipment, Victor said the trend could be stabilizing soon.
“We are beginning to see some possible signs of bottoming but it’s still too early to tell.”
Until then, Ewoldt said he’ll continue to plan for the future and monitor the market.
“Our game plan is going to be we are going to look at all of our yield maps we are going to analyze our production from this year, we are going to find some fields may do better as soy beans than they do corn, and we are going to look at what we think is the most profitable crop to grow.”