Ag equipment sales have dropped over the past year, and analysts expect that trend to continue. However, one economist is more concerned about another area that remains vulnerable as tariffs persist.
“If you move upstream to the agricultural input industries, the John Deeres, the Cases, and so on, that’s a huge concern. We will probably create exemptions or cutouts for most of the higher-value, higher-cost elements in agriculture, but I think it is really straightforward. It’s corn and soybeans. It’s apples. It’s almonds. It’s pistachios. It is some version of processed and canned and easily shipped things,” said Bruce Sherrick with the University of Illinois.
Ag inputs, like feed ingredients and fertilizers, are exempt from higher tariffs for now, but ag equipment makers are feeling the effects. AgCo and CNH both reported double-digit sales drops last quarter. Leaders at AgCO say they are staying nimble amid the uncertainty.
The three-point plan was announced during remarks at the annual meeting of the National Association of State Departments of Agriculture.
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RealAg Radio host Sean Haney joins us for a Canadian perspective on President Trump’s controversial tariff rollout, lower court rulings, and upcoming review by the U.S. Supreme Court.
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Ag Secretary Brooke Rollins will travel to Europe and Asia to seek new trade partnerships for U.S. crops after China reduced imports due to tariffs.
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