Despite lower commodity prices, last year was a very good year for farm equipment sales.
Charlie O'Brien, senior vice president of the Association of Equipment Manufacturers, says sales in most categories went up, including nearly 10 per cent for both tractors and combines.
Prices for corn and soybeans were lower than the previous year, but still pretty high. And he credits the tax deductions available for equipment purchases, and bonus depreciation allowance.
For this year, despite some danger signs, O'Brien is "cautiously optimistic." The danger signs include weaker commodity prices, possible changes in the renewable fuel standard, and continued uncertainty over the farm bill.
The association has been tracking farm equipment sales since the early 1970s.