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U.S. Agricultural Equipment Exports Decline 29 Percent In 2014

Exports of U.S.-made agricultural equipment ended 2014 with a 29.2-percent drop compared to 2013, for a total $8.51 billion shipped to global markets.

All world regions recorded declines - double-digit except Central America. Leading the way were Asia, Europe and Canada, according to the Association of Equipment Manufacturers (AEM), citing U.S. Department of Commerce data it uses in global markets reports for members.

Exports by World Region

Year-end 2014 U.S. agricultural equipment exports by major world regions compared to year-end 2013:

  • Canada dropped 38.4 percent, for a total $2.64 billion
  • Europe declined 30.8 percent, for a total $1.95 billion
  • Central America decreased 7.1 percent, for a total $1.09 billion
  • South America dropped 18.9 percent, for a total $1 billion
  • Asia fell 34.9 percent, for a total $754.9 million
  • Australia/Oceania fell 19.7 percent for a total $732.1 million
  • Africa decreased 21.2 percent, for a total $348.7 million

Exports by Top 10 Countries

The top countries buying the most U.S.-made agricultural machinery during 2014 (by dollar volume) were:

  • Canada - $2.64 billion, down 38.4 percent
  • Mexico - $920.3 million, down 6.9 percent
  • Australia - $640.1 million, down 22.1 percent
  • Brazil - $407.2 million, down 21.2 percent
  • China - $319.4 million, down 34.9 percent
  • Germany - $292.8 million, down 37.7 percent
  • South Africa - $241.1 million, down 20.6 percent
  • France - $203.6 million, down 40.8 percent
  • Russia - $198.1 million, down 34.7 percent
  • United Kingdom - $174.4 million, down 16.3 percent     

Market Analysis Overview

While a decline of nearly one third is steep, the drop in U.S. AG equipment exports was not completely unexpected. In 2014, a record harvest led to lower commodity prices and falling farm incomes, leading to a deterioration in farm economics worldwide.

Lower crop prices caused an uneven market in Europe, while in Asia, the declines mostly focused on China. In South America, the Brazilian market, which remains highly subsidized, experienced not only lower commodity prices, but also a delay in the government's financing program. Overall, conditions for the U.S. remained more positive as it was supported by smaller equipment sales and an improved livestock/dairy sector.

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