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Farm Dealers Have Big Year With Big Gear

Farmer Dan Glandorf of Williamsburg looked over the new Deere 9R 4WD and could only marvel at the size and scope of the huge machine. The 560-horsepower tractor — with a retail price of $514,606 — is the largest tractor Deere has ever made.

"When I started farming in 1984 I had a 110-horsepower tractor, and it was good-sized for that time," said Glandorf, who visited the Van Wall Equipment's John Deere Expo at the Iowa State Fairgrounds last weekend.

The monster 9R tractor is so big it doesn't have wheels, but tracks similar to those on military tanks or heavy construction equipment.

Van Wall's Deere Expo showcased the biggest and newest, a preview to the nation's second-largest indoor farm show, the 57th annual Iowa Power Farming Show, coming to Des Moines' Iowa Events Center Jan. 31-Feb. 2.

The shows reflect the strong economic environment that agriculture enjoyed in 2011.

"Sales are strong," said Matt Van Houweling, marketing director for Van Wall and son of owner Don Van Houweling. "Farmers have cash right now," Van Houweling said. "It the same force that pushes up land prices. When times are good, farmers want more and better equipment."

The power of tractors have progressed from the 13-horse machines that look like midgets compared to today's implements, through the 150-horsepower machines that were standard through the 1980s and the 400-plus horsepower machines today.

"I'm not going to buy right away, but this is the kind of machine that I would seriously consider when we rotate our equipment," said Glandorf as he looked up at the 9R cab.

Van Wall, headquartered in Perry, operates 10 dealerships in Iowa and two other dealerships in Nebraska and Kansas.

What is most notable, Van Houweling said, is that the strongest sales are in the biggest horsepower segments of the market. "If you wanted one of the 9R series, we'd have to look around for you," Van Houweling said.

Indeed, the 9R wasn't part of Van Wall's inventory. It was on temporary loan for the show.

The same is true for Deere's new lines of combines and sprayers, Van Houweling said.

As might be expected, farmers coming off what the U.S. Department of Agriculture reports is a record income year are coming into implement dealerships in a steady stream to order new equipment.

Moline-based Deere reported an 18% increase in sales in the fourth quarter of 2011 and 21 percent for the year.

Results were a mild surprise since Deere was converting much of its production to new environmentally compliant "Tier Four" machinery, Houweling said. "It was a real challenge getting equipment last year."

Deere has plants at Ankeny, Waterloo, Ottumwa, Davenport and Dubuque. During 2011, Deere added about 2,000 new workers, bringing its Iowa work force to about 14,000, and announced a major expansion of the Ankeny works.

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