FCC releases its 2024 outlook for the Canadian farm equipment market

Dec 05, 2023

The farm equipment market saw strong sales at the start of 2023 as inventory levels of new equipment rebounded and farmers recorded record-high cash receipts.

Farm Credit Canada's senior economist Leigh Anderson says record-high crop receipts in 2022 put farmers in a strong financial position to absorb the rising interest rates and equipment prices.

"So far, year to date for four wheel drive tractors, we're seeing it relatively strong still. A little bit on combines, as well and agricultural implements. The other categories a lot of them are see softer sales so far in 2023 and what we expect for the remainder of the year."

FCC’s chief economist J.P. Gervais says farm revenue is a main driver in equipment sales.

"Record-high crop receipts in 2022 and the first half of 2023 put many Canadian farmers in a strong financial position to absorb the rising interest rates and equipment prices. We saw more cash purchases. This year, the drought in western Canada has impacted overall production, reducing cash flow for some producers."

Anderson says going forward to 2024 it may be a tougher decision for farmers to make that purchase as he expects a lot will be really assessing their risks.

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Video: A Farm Song (Busy) | Parody of A Bar Song (Tipsy) by Shaboozey

Lyrics:

My days begin with workin’, Alarm’s at 5 o’clock,
I Fill 5 gallon buckets, The feeders and the troughs,
This five to nine ain’t workin’, why the heck do I work so hard?,
I can’t worry ‘bout health problems, I can sleep in when I’m gone,

One, here comes the two to the three to the four,
Tell em’ ‘buy another cow, we need plenty more’,
Blue jeans are gettin’ dirty, what else could I ask for,
Oh my, more chores

Someone pour me up another shot of sweet tea,
They know me and working hard’s got a history,
There’s another flock of sheep that still needs feed,
Everybody on the farm gettin’ busy,

Everybody on the farm gettin’ busy,
Everybody on the farm gettin’ busy,

I’ve been working pretty stressed but,
I ain’t changing for some cash,
Lord knows that I’m very blessed (More chores),
But I gotta say it’s hard,
Workin’ outside gettin’ charred,
Living out here on the farm, (more chores)

One, here comes the two to the three to the four,
Tell em’ ‘buy another cow, we need plenty more’,
Blue jeans are gettin’ dirty, what else could I ask for,
Oh my, more chores

Someone pour me up another shot of sweet tea,
They know me and working hard’s got a history
There’s another 20 chickens that still need feed,
Everybody on the farm gettin’ busy,

Everybody on the farm getting’ busy,
Everybody on the farm gettin’ busy,

Fun, here on ranch that’s what you can’t ignore,
Might be pretty hard but I love it to its core,
Flannel’s gettin’ dirty, what else could I ask for,
Oh my, more chores (Tell ‘em sing with me)

Someone pour me up another shot of sweet tea,
They know me and working hard’s got a history,
There’s another flock of sheep that still needs feed,
Everybody on the farm gettin’ busy,
Someone pour me up another shot of sweet tea,
They know me and working hard’s got a history,
Watching cattle in the dark, don’t miss me,
Everybody on the farm gettin’ busy,
(Yeeeeeehaw)
Everybody on the farm gettin’ busy,
Everybody on the farm gettin’ busy,
It’s the best bro, go get yourself a farm