Lancaster farming. (Lancaster, Pa., etc.) 1955-current, February 07, 1981, Image 126

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    C3B—Lancaster Farming, Saturday, February 7,1981
Farm Equipment makers see upswing in sales
equipment manufacturers in the
United States are predicting a 10
percent increase in dollar volume
of retail sales in 1981 just enough
to cover what economists feel will
be the year’s inflation rate.
Compames reflected this median
forecast in a survey conducted
among its members m late
December and early January by
the Farm and Industrial Equip
ment Institute, Chicago. Survey
results were presented last Friday
m the State of the Industry report
by Cecil Stralow, vice president
and assistant general manager,
Avco New Idea Farm Equipment,
Coldwater, Ohio.
The forecast which covers
such major items as tractors,
combines, tillage, hay and forage
handling equipment follows a
year that saw unit sales of some
equipment tumble as much as 25
percent. For instance, farm wheel
tractor unit sales were off 12
percent, self-propelled combines
were off 20 percent, and balers
(under 200 pounds) were down 25
“Aside from higher prices,”
Stralow told the nearly 200 in
dustry executives attending the
annual FIEI Winter Marketing and
Management Conference, “survey
results indicate we think higher
farm income, lower interest rates
by harvest time, the new Ad
ministration and a good com
modity export year will help our
industry in 1981.”
The executive went on to list
some of the factors cited by
members who predicted a decline
in dollar sales. These included
continued high interest rates,
unpact of the drought apparently
now spreading West, limited loan
funds in some areas and consumer
These projections represent the
median response range of the
survey of 54 producers of field
machinery and 45 manufacturers
of farmstead equipment. Members
For the finest bedding
were asked to respond only to
questions pertaining to products
they manufacture or sell, but to
make the predictions on an in
dustry-wide basis
In the forecast for all tractors,
unit sales for 1981 are expected to
increase 7 7 percent over 1980 -
which saw a 12 percent decrease
from the previous year 1982 sales
should go up another 4,500 units,
according to the survey.
1980 sales of under 40 hor
sepower, two-wheel drive tractors
were off 5.2 percent from 1979. No
significant strengthening of this
market is expected until 1982 when
a 5 3 percent gam seems likely.
FIEI members say they believe
sales of two-wheel drive tractors,
100 horsepower and over, will
bounce back hard in 1981 at a 17.2
percent gain but still not
recovering the nearly 20 percent
decline of 1980
Four-wheel drive tractor sales
are predicted to continue market
growth, regaining all lost ground
by 1982.1981 sales are expected to
be m the 11,600 range, up 6 6
percent over 1980’s 10,885 units,
while 1982 should see another 4.1
percent increase
Sales of self-propelled combines
in 1980 were off a disappointing 20.2
percent from 1979 according to
FIEI’s December Flash Report
That is 15.2 percent lower than
members forecasted last May. 1981
sales are predicted to increase by
14.7 percent to 29,500 units and 1982
sales should be 30,700
The forecast indicates corn
heads are not expected to regain
ground as quickly, with a nine
percent gam estimated for 1981 By
1982 a market of 20,750 units, a four
percent increase, is anticipated.
Field cultivator sales are ex
pected to come back strongest in
1981 with a 15.7 percent increase
over 1980’s estimated 14,500 unit
sales. The additional prediction
calls for a 5 8 percent gam in 1982
An 18 percent decrease is
estimated for the 1980 disc harrow
market (final sales figures are not
yet ml But 1981 is expected to see
an 11 percent increase to 57,500
units with another six percent gam
for 1982
Sales of moldboard plows in 1981
are forecast to increase 6.3 percent
over 1980’s estimated 24,000 units
1982 may be 2.4 percent higher
than 1981 levels.
In the chisel plow market, an 8.9
percent gam is expected m 1981,
with a 5.2 percent increase to 16,050
units likely m 1982
The market for balers in the
under 200 lb. bale class was off 25
percent in 1980 but 1981 sales are
estimated at 14,750 units - a 5.3
percent gain 1982 sales should be
up 1.7 percent
The big baler market (over 200
pound bales) took a small step
backward in ‘BO, but ‘Bl sales are
expected to increase by 15.5 per
cent to 19,000 units.
The extended forecast calls for
an ‘B2 sales increase of another 7 4
It now looks like forage har
vester sales in 1980 will be off as
much as 24 percent, but sales are
predicted to be up 12.7 percent in
1981 and up again 6 6 percent in
1980 sales of mower conditioners
were also off 24 percent In 1980 the
manufacturers expect to market
21,000 units, a gain of 8 2 percent.
Another mcrease of 10 5 percent is
expected in 1982.
Not unlike other equipment
lines, sales of grinder mixers are
now expected to be off 27 percent
and up a total of about 18 percent m
In the following product
categories, manufacturers
forecast the change in retail dollar
Portable farm augers and
elevators dollar sales are
predicted to be up five percent m
1981 and 11 percent higher yet m
1982 as pent-up demand and higher
gram prices are expected to
bolster sales.
Crop dryers and gram bins are
expected to have modest retail
dollar sales increases m 1981,
perhaps keeping up with inflation
m 1982 High interest rates and a
perceived leveling of demand in
some areas is suggested' as
rational reasons for relatively slow
Farmstead equipment for hog,
beef, and dairy production is
forecasted to keep up with in
flation. Improved prices were
cited as positive factors, while high
Egg output down slightly
1980 egg production in Penn
sylvania totaled 375 million, ac
cording to the Pennsylvania Crop
Reporting Service.
The December production was
two percent above the 368 million
eggs produced in December 1979.
The December average of 16.8
million layers was one percent
higher than a year ago.
Egg production per 100 layers
2230 compart with 2204 in
interest retes and uncertainty
regarding price supports were
often mentioned as reasons to be
less optimistic.
All in all, the State of the In
dustry report indicated
manufacturers believe it will take
most of 1981 to recover from last
year’s precipitous declines in
retail sales. They see any real
turn-around taking place in 1982.
The companies which par
ticipate in this survey manufac-
ture more than 90 percent of this
nation’s field machinery and
farmstead equipment sold in this
country and overseas They are all
members of the Farm and In
dustrial Equipment Institute, the
national trade association for
equipment manufactures, founded
in 1893 and now providing member
services in such areas as
engineering, safety, tran
sportation, statistics, public
relations and government
December 1979.
The nation’s laying flocks
produced 6.05 billion eggs during
December, slightly below 606
billion produced a year ago.
The number of layers for
December averaged 294 million
compared with 296 million a year
Egg production per 100 layers
during the month was 2057 com
pared with 2052 a year ago.
/ j j\
RDI, Cochranville Pine Grove
PA, 19330 PA, 17963
215-593-2157 717-345-3290