Farmers Fight Through Market Uncertainty
Podcast recorded: June 30, 2021
Stearns Bank equipment financing experts Craig Kern, Stan Harvey and Chuck Parker survey the 2021 landscape of agricultural equipment – inventory, pricing, financing options. Nothing has been easy since the beginning of 2020, but there are bright spots encouraging a positive outlook.
- Farmers have not drastically changed their operations since the pandemic. They continue striving to increase efficiency and grow profits.
- Uncertainty in crop prices and commodity markets make it challenging for farmers to plan future equipment needs.
- Low inventory levels are making it difficult for farmers to find suitable used equipment. Supply chain issues and a surge in demand has made new equipment difficult to find.
- Cash flow management and long-term planning are critical. Today, many farmers have with significant cash on hand. Investing in new equipment and financing at today's rates can be a good strategy for conserving cash and paying down other debt.