Tractor, combine supply to stay tight for two years: economist

Farmers wanting to buy a new tractor or combine need deeper pockets and patience with delivery.

“Overall demand for farm equipment is projected to remain strong into 2023, despite rising interest rates and a weakening Canadian U.S. exchange rate,” says a report by senior economist Leigh Anderson of Farm Credit Canada.

Demand is buoyed by strong farm cash receipts, even with commodity prices softening from peak levels.

Farm equipment manufacturers are expected to increase the delivery of new equipment orders but inventory levels will remain below pre-pandemic levels and “could remain tight beyond 2024.”

Disruptions in supply chains by the pandemic have reduced equipment sitting in the lot.