Farm Credit Canada (FCC) is expecting demand for farm equipment to continue to be strong in 2023, FCC’s farm equipment market outlook said. The market will be strong as it weathers rising interest rates and a weakening Canadian dollar.
“Producers will benefit from strategic planning as inventory levels for farm equipment remain below pre-pandemic levels, something we expect could continue through 2024,” J.P. Gervais, FCC’s chief economist, said in the release. He noted tractor inventory levels are down 42 per cent and combines are down 47 per cent from the five-year average.
The outlook also said the used equipment market has seen increased demand because of the pandemic-related shutdowns. With limited availability of new equipment and parts, producers were adapting by having additional used equipment available for parts if needed, it was noted.
Equipment manufacturers are expected to increase production of new equipment due to the changing economic environment providing the opportunity for inflationary pressures in the used equipment market to moderate, the release said.
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