D24-Lancaster Fanning Saturday, February 18,1989
Farm
CHICAGO, IL. U.S. farm
field equipment manufacturers
forecast an 8.0 percent increase in
dollar retail sales and a 5.5 percent
improvement in parts retail sales
for 1989. Farmstead equipment
manufacturers forecast a 5.0 per
cent increase in both retail and
parts sales.
Through about mid-year 1988,
farm equipment sales showed
increases over the previous year of
10 to 20 percent depending on the
product line. The severe and wide
spread drought of 1988 caused
farmers to reconsider and delay
purchases of new equipment to the
extent that, in general, farm field
type equipment sales for the total
year ended up approximately
equal to 1987.
This year opens with agricul
ture having a strong financial out
look that can be expected to pro
vide an environment favorable to
increasing sales of farm equip
ment. The factors impacting sales
include 25 million acres farmed,
improved farmer’s attitudes,
replacement demand, favorable
commodity prices, good gross
cash receipts and solid U.S. grain
exports remain influential on far
mers’ decisions to invest in new
equipment. Other factors such as
reduced farm debt, disappearance
of good used equipment for sale,
net farm income, livestock and
dairy prices, and government
payments.
All the above listed factors are
perceived as positive in 1989 for
agriculture and thus have the
potential for a favorable impact on
farm equipment sales.
Manufacturers surveyed predict
until retail sales of 113,138 for
farm tractors sold in 1989.
In 1988, FIEI member manu
facturers sold 106,283 tractors,
1.7 percent fewer than 1987’s total
sales, according to the FIEI
“Flash” monthly statistical report
of unit retail sales released Janu
ary 13, 1989. This was slightly
less than the industry had
expected to sell based upon their
December predictions represented
in the State of the Industry report.
Smaller tractors, the “under 40
hp” category, accounted for about
51 -percent of sales in 1988,
according to the “Flash” report.
FIEI member companies surveyed
in the 1989 State of the Industry
Report expect the “under 40 hp”
category to retain 49 percent of
total tractor sales this year.
The State of the Industry pro
jections represent the medians of
the range of survey responses by
28 major farm field machinery
producers and 25 major manufac
turers of farmstead equipment.
FIEI member companies were
asked to respond only to questions
Equipment Manufacturers See Industry Upturn .
pertaining to products they manu
facture or sell, but to make predic
tions on an industry-wide, rather
than for their company, basis.
The companies that participate
in this survey manufacture more
than 90 percent of the nation’s
field machinery and farmstead
equipment sold in the U.S. They
are all members of the Institute,
the major trade association for
farm and industrial equipment
manufacturers in North America.
Farm Wheel
Tractors
In 1988, “100 hp and over”
two-wheel-drive tractors con
tinued the sales rise starting in
1987 with a 1.4 percent increase to
a figure of 16,127 for the year.
Sales in that category for 1989 are
expected to be at the 18,320 level.
At the same time, sales in the
smaller tractor categories coming
off a 1988 unit sales of 87,427,
forecasted 1989 sales of 89,675 or
a slight increase of 2.6 percent.
Sales of four-wheel drive trac
tors are expected to improve over
the 1988 “Flash” report figure of
2,729 units. Sales for four-wheel
drive tractors will improve in
1989 by 9.2 percent to 2,980 units,
member companies predict in the
State of the Industry report.
Grain Harvesting
Equipment
Sales of self-propelled com
bines in 1988 were off 16.4 per
cent from the 1987 figure.
Manufacturers predict sales will
sec a considerable increase of 35
percent in 1989 and expect a furth
er 10.5 percent increase in 1990.
The State of the Industry report
indicated that corn head sales will
rest at approximately 3,375 for
1988, down from the 3,924 units
sold in 1987. Manufacturers pre
dict a big increase in 1989 of 36.5
percent in to 4,607 units sold.
Tillage
Equipment
Tillage equipment sales, when
final figures are available for
1988, are expected to show some
increases over 1987 and manufac
turers of field cultivators, disk har
rows and chisel plows estimate
continued increases for 1989.
Disk harrow sales are predicted to
increase by 15.0 percent in 1989.
Sales of field cultivators and
chisel plows are forecasted to
increase 6.5 percent and 5.0 per
cent, respectively, in 1989.
Hay
Forage Equipment
The market for balers in the
over 200-pound bale class is
expected to pick up by 3.0 percent
in 1989 according to the State of
the Industry Report. In the under
200-pound bale class, a modest
increase of 0.9 percent is expected
for 1989; approximately the same
unit volume as 1989 is expected in
1989 or 1990.
Forage harvesters, had a sales
increase of 5.5 percent in 1988
and is expected to increase by 3.6
percent to 2,564 units in 1989
according to the State of the
Industry report.
Manufacturers of mower
conditioners sold 11,041 units in
1988, slightly down from 1987 of
11,239 but are expected to be up
2.0 percent in 1989 to 11,220
units. Sales of self-propelled and
pull-type windrowers increased in
1988 to an estimated 1,750 units
and are forecast to increase to
1,820 units in 1989.
Manure spreader sales are
expected to improve by 1.7 per
cent in 1989 and remain at the
same level in 1990.
Grinder mixers are forecast to
Idaho Native Accepts
COLLEGE PARK, MD
Kenneth R. Stafford becomes
assistant vice chancellor lor agn
cultuial affairs for finance and
management and assistant dean
for the Colleges of Agriculture
and Life Sciences effective March
6.
“We are pleased that Ken Staf
ford is joining our programs,”
noted Dr. Raymond J. Miller, vice
chancellor for agricultural affairs
and dean of the Colleges of Life
Sciences and Agriculture at the
University of Maryland at College
Park. “He brings a background in
automated management that will
complement and enhance our
existing capabilities.”
Dr. Billy Coffindalfcr has
served as acting vice chancellor
since Oct. 20, 1986. Stafford, 40,
said the position “meets my long
term goals and objectives” and
that he looks forward to joining “a
high quality faculty and staff.”
The southern Idaho native is
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have a 7.0 percent decline in 1989
following a stron 9.0 percent
increase in 1988 over the previous
year.
Farmstead
Equipment
In the following product
categories, manufacturers forecast
some changes in retail dollar sales.
Sales of augers and elevators
are expected to be the same in
1989 as in 1988. Grain bins and
crop dryers are expected to remain
at their current low levels with
1990 forecast to have a 15 percent
increase in grain bin sales. Dairy
and beef mechanization equip
ment sales will show a 5.0 percent
improvement in 1989 over 1988,
setting the stage for an additional
4.0 percent increase in 1990,
reporters in the State of the Indus
try predict. Hog mechanization
Of Maryland Ag
Kenneth R. Stafford
currently director of administra
tive services and fiscal officer for
the College of Agriculture at the
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equipment is expected to show a
3.5 percent increase in 1989.
Milking machine sales will show a
4.5 percent increase from the pre
vious year and gain another 5.0
percent in 1990 according to the
manufacturers.
FIEI, the national trade associa
tion and coordinator for the indus
try survey, provides to manufac
turers services in such areas as
electronics, engineering, legisla
tive and government relations,
product liability, public relations,
safety and statistics.
Copies of the 1989 State of the
Industry Report and subscription
forms for the monthly “Flash”
reports are available from the
Farm and Industrial Equipment
Institute, 410 North Michigan
Avenue, Chicago, Illinois 60611.
University
Post
University of Idaho. He served as
fiscal officer from 1980-1988.
Stafford was assistant director of
the University ofldaho’s Manage
ment Information Services from
1977-1980, and also worked in
that department as a research
analyst.
Stafford received his bachelor’s
degree in business from the Uni
versity of Idaho in 1971. He
earned his master’s degree in eco
nomics from Idaho in 1975. Staf
ford received the “Outstanding
Employee” award from the Uni
versity of Idaho in 1987, and also
received the “Alumni Award for
Faculty Excellence” from the Uni
versity of Idaho Alumni Associa
tion in 1986.
Stafford will be the chief fiscal,
personnel and management offic
er for the Office of Agricultural
Affairs, Cooperative Extension
Service, Agricultural Experiment
Station and Colleges of Agricul
ture and Life Sciences.
Off With An
—AO\
vJSjy
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