TORONTO – Canada’s farm machinery manufacturers are looking forward to another year of strong sales and good prices, says an industry spokesperson.
“I think we are in for a bullish year, not spectacular but good,” said Brent Hamre, president of the Canadian Farm and Industrial Equipment Institute.
For farmers planning to buy machinery this year, it probably means equipment will be available but they will be paying more than they would have a year or two ago.
“During the years of terrible sales, there was a lot of price discounting,” said Hamre. “I think those days are over so yes, I think higher demand will mean stronger prices.”
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He said inventory numbers on major items such as tractors and combines suggest there will not be shortages as there were last year when demand for air seeders was stronger than the industry and dealers had expected.
Don’t hesitate
“I would expect supplies will be there but I don’t think farmers will have the luxury of going in, kicking the tires every week or so and deciding to buy six months later,” said Hamre. “If they want to buy, it might not be there in six months.”
This is a far different outlook for the farm machinery industry than has been the case for most of the past decade. Last year’s buoyant crop prices and growing farmer optimism led to a surge of machinery buying on the Prairies that boosted sales numbers to their highest level since before the grain trade war started in 1986.
Even last year’s end to the $560 million Crow Benefit grain freight subsidy did not put a damper on sales, “although we really expected it would,” said Hamre from his offices in Burlington, Ont.
Tractor sales were up more than two percent last year to 13,277, buoyed by sharply increased sales in Western Canada. Combine sales were up 17 percent to more than 2,000.
“I think we are seeing more farmers with more money finally deciding to replace that aging tractor or combine that they have been trying to hold together,” said the industry spokesperson.
“We expect and hope that those numbers will hold again this year. Prices remain high and we expect farmers to be trying for a big harvest this year. They will need equipment.”
Hamre said one of the few events that could dampen that outlook would be more sharp agricultural cuts in the March federal budget.
However, a repeat of last year’s 20 percent cuts is not expected.
