Farming equipment sales have gone up, and so have commodity prices and farmland values. WinnipegFreePress.com writer Martin Cash reports on the positive outlook of the agricultural sector as farmers are starting to make more money.
The agricultural business has always been unstable since many factors, including weather conditions, demand and supply equilibrium, and the economy could either topple or boost sales easily. With the volatile nature of the industry, farmers and traders are caught between a rock and a hard place when it comes to investing and allocating their money. The current boom in the industry, however, has had farmers searching for previously-owned tractors for sale.
At the end of 2012, sales of two-wheel drive tractors have gone up 3.9 per cent and four-wheel drives to 16.6 per cent in Canada. In fact, according to the Association of Equipment Manufacturers, Canada remains as the top buyer of U.S.-made equipment. The increase in farming equipment sales has been motivated by the need to produce enough crops to feed the population, which makes having the right equipment important.
Finding good farming equipment deals may be difficult so it's always better to start somewhere easy and convenient; look at comprehensive online dealership listings from the likes of 411Farmnet to locate what you need; and also advertise your own equipment for sale or trade. According to the report, buying brand new equipment is attractive because they're more sophisticated, have parts available and have more skilled technicians to work on them. However, buying used ones may be more practical especially if you have a small-scale business; also many of these older equipment are more durable so you save on costs.
A used tractor for sale, for example, may seem like a good idea because of the price cuts, but there are certain things that you should watch out for before making the purchase. First off, you should ask the manufacturer if they still service the particular model you plan to buy and if they still manufacture its parts. One way of estimating how much life a tractor has left is by using a tire gauge to measure the tread depth of the tires and comparing it to the measurement provided by the tire manufacturer; a shallower tread may be a sign of overuse.
The growth of the agricultural sector has benefited farmers, equipment sellers and consumers; and has created a positive domino effect which caught may industry insiders by surprise. If you're in the farm equipment trade, there's now an active market waiting for you. Farmers have seen the worst of times, now they're looking at the best of times.