Sales of ag equipment remain steady, but drops coming in farmer income could drag them down

Ag equipment sales steady, but tougher times ahead

DECATUR, Ill. — More farmers are looking than buying this week at the annual Farm Progress Show in Decatur, Ill.

North American sales of tractors and other farm equipment have been relatively strong despite drops in crop prices and the recession.

But the U.S. Department of Agriculture projected last week that farmers’ incomes will drop 38 percent this year.

Farmer Wayne Deters of Effingham says many farmers at the trade show are just too nervous about the economy to spend much money.

Analyst Eli Lustgarten says agriculture equipment makers like Deere and Co. are in for an up-and-down next 18 months. But he doesn’t expect sales to drop off a cliff, either. He says farmers are still enjoying relatively good times.