Implement dealers hopeful
Staff writer
Many factors, including weather, the overall and farm economies, interest rates, delays in harvest, quality of harvest, and concern over tariffs could affect farmers’ decisions on buying new implements.
Commodity prices are probably the biggest driver of whether farmers buy, or delay buying, new implements, Mike Rhodes, salesman at G&R Implement in Durham, said.
“There’s some uncertainty on that,” Rhodes said. “I think there’s interest rates as well.”
New equipment sales are strongest early and late in the year because that’s when farmers have figured out their taxes and have a better idea whether it’s the best time to buy new, he said.
No one seems to be delaying new equipment purchases out of fear of tariffs, he said.
“I would say new equipment sales are down from previous years,” he said. “I would say it’s because of dry conditions in the last few years and commodity prices. The prices are on the low side right now.
“I’ve been hearing that, for the wheat harvest, the yields are doing good, and the outlook for the fall harvest is looking good because we’re sitting good on moisture.”
After years of drought, Rhodes also expects this year’s late rain to make for better sales.
“Our business is geared more toward the hay harvest,” Rhodes said. “In our business, the rain definitely helps.”
He said interest rates, trending down a bit, likely would help boost sales.
Sales aside, G&R has been doing a booming repair business.
“Parts have been good,” he said. “There is a lot of older equipment being worked on.”
Mark Berner, outside salesman and management team member at KanEquip in Herington, also said repair business was good this year.
“I would think the tariffs are a concern, especially for new equipment,” he said. “We’ve had plenty of rain, so farmers are buying what they need.”
This year’s hay crop is good, so KanEquip’s sales are indicative of the season, he said.
“I don’t see people buying things that are frivolous. They’re buying what they need right now,” Berner said. “We’re seeing people buying hay equipment right now. They’re not buying a ton of tractors.”
KanEquip also is doing well with repair work.
“Our shops are busy with repairs,” he said. “They are tractors, combines, balers, and swathers.”
Although farmers always are concerned about interest rates, that’s not as important as the year’s harvest, he said.
“Lower prices drive interest rates up,” Berner said. “It’s part of the economy.”
Although KanEquip is geared up for any farming need, the Herington shop does its best business in hay-related products and things that go along with that.
“With recent rains, there’s a good hay crop out there right now, so farmers will invest in their equipment,” Berner said. “If there had been a drought, we wouldn’t be seeing the sales that we’re seeing.”
New as well as used balers and swathers are doing well at KanEquip.
“I hope it keeps raining for the soybeans and corn crops,” he said.
Both G&R Implement and KanEquip sell an assortment of brands and makes of equipment.