Farm Machinery Market ‘All About Availability’

The 2007-2008 “ethanol-fueled demand push,” the bullish grain market environment of 2012 and today: they’re the three times in the last 30 years when the farm machinery market has been driven by low availability and resulting high prices. It’s the convergence of a year’s worth of factors, the first being how manufacturers tightened up production in the face of the demand destruction of the COVID-19 pandemic. When grain prices started surging in the latter half of 2020, it caused a bounce in equipment and machinery demand. With less inventory on the market, that bump caused some major supply/demand issues that have prices rocketing, especially in the used equipment sector. It’s a call for farmers to keep a close eye out for ways to meet their equipment needs in the short term, as well as a sign that “it’s a great time to be a seller.” See more from Machinery Pete.