Are you planning on purchasing agriculture equipment soon? Get to know the top 5 farm equipment shipped in 2020.
Although Covid has put a lot of uncertainty into the economy, government lockdowns hurt private revenue, and businesses have largely delayed spending on numerous capital cost items, spending on tractors and combines—two of the most popular equipment purchased by farmers—have seen mixed sales in 2020.
According to a report published by the Association of Equipment Manufacturers, tractor sales in Canada were very positive. The 4WD (four-wheel drive) segment showed the biggest growth at 37 percent. Sales in the sub-40-hp range grew nearly 32 percent, while sales in the 40-hp to 100-hp range grew by 21 percent, and the largest category of tractor (100 hp+) grew by 15 percent. Combine sales, on the other hand, dropped by 14 percent for the year.
In the US, total YTD (year to date) farm tractor sales rose by 17.9 percent in 2020, while combines rose by 5.5 percent.
Agricultural machinery sales optimism
And sales are expected to grow even more in 2021. According to results from the Ag Equipment Intelligence/Farm Equipment 2021 Dealer Business Outlook & Trends, equipment dealers are showing the most optimism.
According to that report, 43 percent of farm equipment dealers in Canada believe revenue will grow between two percent and seven percent in 2021 compared to 32 percent of respondents in the US who believe the same thing. And 14 percent of Canadian dealers believe equipment revenue will increase by more than seven percent compared to eight percent south of the border. Half of American respondents expect sales in 2021 to be about the same as 2020, whereas that number is only 29 percent in Canada.
According to the USDA (United States Department of Agriculture), U.S. agricultural exports in Fiscal Year (FY) 2021 are projected at $152.0 billion, up $11.5 billion from the August forecast, driven by higher soybean and corn export values.
According to Grandview Research: Harvesters will grow at a CAGR (compound annual growth rate) of more than 10 percent and by 2025 will reach a share of more than 21 percent of the total agriculture equipment market.
The most popular agricultural machinery
The tractor is the iconic farm machine. It is one of the oldest and most recognizable. However, it isn’t necessarily the most popular in terms of sales units.
Grandview Research put out a report which divides equipment sales by application, states the largest application in which agricultural equipment is used is Land Development and Seed Bed Preparation; this is followed by Harvesting and Threshing and then Post-Harvest and Agro Processing, Sowing and Planting, Weed Cultivation and Plant Protection, which is about one-third the size of Land Development and Seed Bed Preparation.
According to Ritchie Bros. auction results for farm equipment bought at auctions in Canada for the two years ending January 2021, machine categories with the highest sales are:
1. Skid steer attachments (50,800 units)
2. Landscape equipment (9,200 units)
3. Tractors (9,000 units)
4. Grain handling equipment (8,700 units)
5. Livestock handling (7,600 units)
The auction company also sold more than 7,000 units of seeding and tillage equipment and more than 5,000 units of harvesting equipment.
Shipping farm equipment
When you’re ready to buy farm equipment, you have to think about transporting it. You will probably need to seek the transport services of a truck driver or hauling company to transport your farm equipment.
In recent years, digital load boards have become a popular method for shippers to find haulers.
Trusted Dispatch is the fastest growing load board for heavy hauling in Canada and a trusted ally to farmers. Based out of Calgary, Alberta, the company was founded by a professional rodeo champion turned CEO.
Trusted Dispatch offers a cost-competitive quote instantly and getting a quote is easy.
Get a quote by going to the company’s “Get Quotes” page. Enter the equipment’s pick-up and drop-off locations. Enter the machine information. Click on “Next”.
If you haven’t set up an account with Trusted Dispatch, or you’re not logged into your account, you will need to enter your email address. Once entered, the quote appears instantly.
If you’re happy with the quote, you can post it. Once you do, an alert goes out to Trusted Dispatch drivers that there is a new load available. Then it’s up to the shipper to decide which hauler they want to ship their farm equipment.
Trusted Dispatch uses a proprietary AI to create quotes. And it uses a unique system to get shippers the cheapest quotes.
Haulers look for loads whose pick-up location is near their latest drop-off location and whose drop-off location is near the driver’s point of return (commercial establishment or personal residence) to make some extra cash on the return trip home. Since the haul adds only a few miles to a trip they had to make anyway, the drivers are willing to work for less and this cost savings gets passed onto the shipper.
Find out more about how Trusted Dispatch can save you money.