—Lancaster Farming, Saturday, Oct 4, 1975
30
Equipment supplies
DENVER, COLO. - Farm equipment manufactures
expect overall demand for farm equipment to remain
strong in 1976, especially for bigger tractors and com
bines.
That was the consensus of outlook statements prepared
by a group of industry leaders for use in conjunction with
the 82nd annual convention of the Farm and Industrial
Equipment Institute being held here Sept. 28 through Oct.
1,
To support their optimism, manufacturers mentioned
such reasons as the strong demand for bigger equipment
which aids farmers in combatting higher food production
costs, the strong world demand for American crops and
improved export outlook, and some expectations of im
provement in livestock operations.
While they were optimistic about the overall outlook,
however, they noted inventories of smaller-sized tractors
and equipment now have been replenished after the
shortages which occurred during 1973 and 1974.
“The tractor industry has remained strong through
very trying economic times. The outlook, both near-term
and longer range, is for continued strength, “Louis R.
Ross, Ford Motor Company vice president and general
manager of Ford Tractor Operations, said.
He said while unit sales of tractors may decline slightly
in 1976, “We foresee a continued rise in sales dollars as the
trend to larger and more sophisticated tractors will
continue.”
“The improved outlook for farm commodity prices as a
result of higher export demand encourages us to expect
1975 to be another year of strong demand for farm
equipment, especially for larger tractors and combines,”
Chairman William A. Hewitt of Deere & Company said.
“Cash receipts from farm marketings have been the best
indicator of demand for farm equipment. It now appears
that 1975 receipts will almost equal last year’s record $94.1
billion and that 1976 receipts likely will surpass $lOO billion
for the first time.”
John E. Mitchell, Massey’FergUson’s executive vice
Corn-soybean
field day held
Dick Cole, representing Penn State, spoke to
interested farmers during the corn-soybean field
day held Monday afternoon at the Research Farm
near Manheim.
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Smoketown, Pa. Ph. 299-2571
president-Americas, said his firm expects fanner’s total
cash receipts to increase three percent or more over 1975
“reflecting a large volume of crop and livestock
marketings and relatively favorable prices. Increased
prospects of export sales have cushioned the price im
pact of record crop harvests. Crop production in 1976 will
likely be another ‘all-out’ year.’’ He said demand for large
tractors end combines still exceeds supply.
Ben H. Warren, group vice president, International
Harvester, said “the agricultural scene during 1976 is
somewhat clouded, but at this point in time we foresee a
good year for ag equipment sales, somewhat comparable
to 1975.” He said “the single most dominant factor in
determining the kind of year this industry will have is the
federal government’s approach to gain trade with foreign
nations.”
“Restricting or removing the farmers' foreign markets
discourages the full employment of agriculture’s
capabilities and brings with it, higher production costs, ”
he said.
“We do not advocate high food prices to the consumer.
All of us are consumers. We do advocate an export policy
which is long term and consistent. We deplore the
manipulation of farmers’ incomes for political purposes.
If this country is to continue to play its major role in
helping feed the world, it cannot, in justice, be done at the
expense of the one small group of people most responsible
for meeting world food needs.
Optimism continues as J I Case Company surveys the
agricultural outlook and markets for 1976, according to T.
J. Guendel, the company’s president and chief executive
officer.
Farm income and receipts this year are higher than
originally expected, due to the fact that North American
grain and livestock prices are improving because of more
domestic usage and larger export demand, Guendel said.
“The outlook for American and Canadian farmers is
favorable for the balance of this year and for 1976,” he
continued. “The world demand for full food production
will continue to grow in 1976. This demand, coupled with
the increase to 10 per cent U.S. investment credit on farm
machinery purchases, means that prospects for
machinery manufacturers should improve this fall and
well into 1976.”
Robert E. Kidder, group vice president-farm equip
ment, White Motor Company, said “the critical factor for
the farm economy in the future will be the farmer’s
ability to generate the greater possible income in the face
of continually increasing production costs.”
He said he expects “over 100 horsepower” tractors to
account for at least half of all units sold by 1980.
“To be more efficient and productive, today’s
machinery buyer (and tommorrow’s) required larger,
higher horsepower machines designed to get in and out of
fields when weather permits.” he said.
Joseph H. Maloney, executive vice president of Allis-
Chalmers Corporation, said the end of the economic
recession in the United States coupled with an unproved
agricultural outlook, will help generate a strong market
for agricultural equipment for the remain of 1975 and for
1976.
“Worldwide prosepcts for farm machinery are also on
the rise. The long term implications of the latest Russian
grain deal are that weather conditions will periodically
strengthen
depress their crop and provide an additional market for
us,” he said.
Kenneth F. Thompson, president, Sperry New Holland,
said equipment sales might show a slight decrease in
constant dollars. He said the apparently strong export
demand for crops means the livestock sector will not
enjoy the lower feed prices to the extent previously an
ticipated “but we nevertheless see gradual improvement
in livestock producers’ margins.”
R. W. Engle, vice president and general manager of
AVCO New Idea said equipment sales could show a
modest five to six percent increase in sales in 1976 if
commodity and livestock prices hold at or near current
levels.
“We at Hesston Corporation are viewing 1976 with
considerable optimism, fully anticipating a more
favorable market for beef and milk producers as well as a
respectable net farm income,” Howard L. Brenneman,
president of that firm, said.
R. L. McElheny, president of Farmhand, Inc., felt
however “the difficult market conditions in the livestock
equipment sector in particular, will continue throughout
most of 1976, causing a continued softness in the hay and
forage equipment retail sales activity.”
‘Tn our opinion 1976 should be approached with guarded
moderate optimism. It has many of the indications of
being a near repeat of 1975,” John E. Love, president of
the J. E. Love Company, said. “World demand for food
and fiber will continue to be high, and equally important
with demand the capability to pay seems more reliable.”
Joe J. Zedra, president of Gehl Company, said
“livestock prices have a very strong effect on equipment
sales and the hog market looks particularly encouraging
into mid 1976. With large quantities of beef being available
in the market place, these prospects are somewhat
questionable.”
R. H. Rawson, presidentof the Empire Plow Company,
said “a good 1976 is in prospect.” He said while there are
some “clouds on the horizon” the plus factors seem to
outweigh the minus.
William D. Hairrell, president of Taylor Implement
Manufacturing Company, said his firm is planning to
produce 10 percent more tonnage of its products in 1976.
Milk Lifts Available in Stanchion
Barns. No Head Bumpers.
Used Tanks & Milking Equipment
800 Gal. Zero
500 Gal. Esco
300 Gal. Mojonnier (Good condition)
Surge mini-cups
DeLaval & Surge Bucket Milkers
New and Used Compressors all sizes
SERVICE IS THE STRENGTH
OF OUR BUSINESS
We are on call 24 hours a day
- 7 days a week
1 here are 4 of us that work on Refrigeration
and Electrical.
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JAY M. HORST
DAIRY EQUIPMENT
R.D.I Lebanon. PA Phone (717) 274-1242
Sales Rep. in Lane. Co.
Bill Guhi Phone (717) 529-2569
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