Video Transcript
Carson Dickson, CFA
Research Analyst
U.S. Value Equity Team
I was recently in DeKalb County, Illinois, on an agricultural field trip, where I met with farmers, suppliers, and ag equipment dealers. With falling corn and soy prices this year, farmers have pulled back on their orders of combines and tractors. Producers of those pieces of equipment have tried to reduce their volumes this year, but it’s been hard to get ahead of the rise in the inventories of the dealers. This year’s corn crop will be a bumper crop due to good weather in the U.S. With that big crop, farmers won’t have their incomes going up next year. Their purchases of ag equipment will stay weak; we don’t foresee them recovering anytime soon for ag equipment dealers and producers.
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