Agrievolution Alliance, a global network of farm machinery associations, came out with its latest report today on how the farm machinery business is faring here and around the world. As with all of the reports we’ve seen, including our own in last month’s Buyer’s Guide, the industry is expressing cautious optimism in sales for 2014, with automation serving as the key safety net.
Overall, the manufacturers of tractors and agricultural machines are satisfied with their current business situation, with every other company describing the business situation to be “good“ or “very good” and expect the same moving forward for the next six months. They credit favorable economic conditions as a reason.
Key challenges going into next year include global commodity markets and customer financing. In the mid-term, mechanization and automation, both on the field and for animal housing, are expected to be the major drivers of demand for new agricultural machinery.
“Agrievolution Alliance” is a group founded in 2009 to foster the exchange of market information for agricultural machinery at an international level, with the goal of greater market transparency. The Association of Equipment Manufacturers (AEM) in North America is one of the member groups.
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