Persistent supply chain worries farm equipment dealers

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Persistent supply chain worries farm equipment dealers

Like other segments of the U.S. economy, farm equipment dealers have been impacted by supply chain disruptions caused by COVID.

Speaking at the MATE Show in Billings, Mont., C&B Operation’s Tim Schulz said these disruptions include everything from parts to new equipment.

“Overall, it probably has a bigger effect on new product coming in,” Schulz said. “Alligators, tractors and haymaking equipment are certainly rare. We just received a notification that we are going to run out of presses this year. Retail is certainly a priority. If people want to buy gear, you better put a name on a purchase order and write a check and you’ll have a better chance of getting it. And even then, it still came out several months or more.

He says rising input costs are another direct result of supply chain disruptions.

“Obviously the cost of equipment inputs, as well as availability is definitely a struggle for guys who need to get up to speed,” Schulz said. “Also some of the other inputs like fertilizer and fuel are some of the topics that always come up in conversations that have certainly skyrocketed and prices. So tough decisions have to be made and they try to figure out what really makes sense.

He says the shortage of new equipment has created a hot market for used farm equipment.

“It definitely has the same effect,” Schulz said. “The shortage of new has an impact on used ones. It is also enhanced or augmented depending on how you want to see it.

According to the latest data from the Association of Equipment Manufacturers, overall agricultural tractor sales in the United States and Canada continued to rise in January, while combines slowed during the month. Meanwhile, in 2021, tractor sales increased by 10.3% compared to 2020, while combines saw a 24.7% increase.

Source: Agricultural Information Network and Western Agricultural Network

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