Farming in Financial Slump?!
If you’re not worried, you’re not paying attention. We’re surprised how few farm insurance agencies are talking about this!
As we mentioned last week in our GMO post, we work with a LOT of farmers. Moreover, if you are part of a farm family, you know the economics of farming revolves greatly around the largest seller of tractors and other farm equipment: Deere.
Unfortunately, the farm tractor equipment industry hit the worst sales year since 2009, and Deere’s fallen stock prices mean we should tread cautiously in 2016. This was due to a weakening demand combined with bumper harvest, resulting in the sale of just 28,000 farm tractors. To note, Deere’s slump is not as rough as the early 2000s, when barely 20,000 tractors were sold, but the lack of revenue is certainly concerning for those in agribusiness.
Deere hopes that federal tax incentives, briefly reinstated late in 2014, will become a permanent deduction. But until the election talk finishes, all we can do is hope.
This Deere Tractor is stuck in water from the 2013 Colorado floods.
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Source: The Wall Street Journal’s Article on Deere