Cyclical Nature Gives Hope to Ag Equipment Dealers

Past cycles could shed light on how the ag equipment market will perform in 2025 and beyond.

Kim Schmidt with Ag Equipment Intelligence Report, suggests agriculture is cyclical, which she says is encouraging given the current slowdown in machinery sales.

“That cyclicality of it is definitely something that I think helped people stay more positive about it, there’s this ‘we’ve done this before and we know it’s not going to be the end of the world’ type attitude. Which is pretty refreshing really.”

She says the industry seems more prepared than it was in the past and hopeful the current downturn doesn’t last as long.

“And certainly, everyone still will point to it’s not what we went through in the 80’s, which thank goodness for that. So, I would say the industry has a pretty good attitude about they know it’s cyclical and they know we have to go through this every few years.”

Schmidt’s publication conducts annual surveys of ag equipment dealers, similar to the Purdue University/CME Group’s Ag Economy Barometer.

EDITOR’S TAKE:

Our CAG CEO Pat Driscoll has often mentioned the cyclicality of agriculture. This article underscores not only the cyclical nature of agriculture but why people (in this instance the equipment industry) will remain upbeat and optimistic despite a downturn in sales. Like any business person would do under similar circumstances, equipment dealers tighten their operations and ride out the downturn. The difference, however, they remain upbeat knowing the cycle will likely be short lived. Of course, there have been exceptions but, by and large, ag cycles tend to be shorter and counter-cyclical to the general economy. This is precisely why you should stay focused on agriculture and keep your inventory on AgTruckTrader.com®!