Ag Equipment Exports Drop

Chuck Zimmerman

AEMAccording to an update from the Association of Equipment Manufacturers exports of U.S.-made agricultural equipment for first quarter 2015 dropped 16.7-percent compared to first quarter 2014, for a total $1.82 billion shipped to global markets.

All world regions recorded declines except Central America, and Europe experienced the deepest drop, according to the Association of Equipment Manufacturers (AEM), citing U.S. Department of Commerce data it uses in global markets reports for members.

Exports by World Region

First quarter 2015 U.S. agricultural equipment exports by major world regions compared to first quarter 2014:

Canada dropped 16.7 percent, for a total $582 million
Europe declined 34.7 percent, for a total $410.5 million
Central America gained 6.4 percent, for a total $273.3 million
South America dropped 21.8 percent, for a total $187.8 million
Asia fell 22.2 percent, for a total $178 million
Australia/Oceania fell 16.2 percent for a total $120.7 million
Africa decreased 6.3 percent, for a total $67 million
AEM Market Analysis Overview

AEM’s Benjamin Duyck, director of market intelligence, provides some insights:

This quarter decline of 16.7 percent was quite steep, though less harsh than the 29 percent decline last quarter or the 19.3 percent decline in Q1 of 2014. As global market drivers had not changed much from last year, declines in the exports of farm equipment was expected. Farm incomes are still forecasted to decrease in 2015, and on a more macro-economic level the strong dollar is still hampering U.S. global competitiveness.

More info here.

AEM, Agribusiness