Farm Credit Canada's chief economist J.P. Gervais says with a good crop in 2022, receipts for 2023 are going to rebound and that should sustain the demand for equipment.
He notes there are caveats to this positive outlook, interest rates is one of them, the cost of farm inputs overall, and the weakening Canadian dollar.
While the depreciating loonie makes new tractors and combines more expensive, it also has a positive effect on farm commodities destined for export.
Gervais feels the used equipment market is expected to stay robust for most of 2023 and into 2024.
FCC says the used equipment market has seen increased demand because of the pandemic-related shutdowns with limited availability for new equipment.
He says we've seen quite a bit of disruption in the system from problems accessing parts to equipment, but most of the indicators are telling us that, globally, the supply chains are improving.
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