Farm Equipment Exports See 14% Decline
From January to September 2016, U.S. exports of ag equipment fell 14% compared with the same time period last year. The total shipped to global markets was $5.1 billion. According to the Association of Equipment Manufacturers (AEM), Europe and Central America led in gains while Asia saw the biggest decline. The business group, which is the North American-based international business group representing the off-road equipment manufacturing industry, cited the U.S. Department of Commerce data it uses in global market reports for its members.
The 10 countries buying the most U.S.-made ag machinery during the first three quarters of this year were:
- Canada - $1.5 billion
- Mexico - $873 million
- Australia - $353 million
- Germany - $185 million
- China - $156 million
- France - $128 million
- Ukraine - $123 million
- Brazil - $115 million
- South Africa - $91 million
- United Kingdom - $89 million
According to Benjamin Duyck, AEM director of market intelligence, "In the third quarter of 2016, U.S. agriculture equipment exports to the world continue to decline, and the year-over-year third-quarter exports were lower than year-to-date, with a 17.6% year-over-year decline, the highest year-over-year decline this year so far."
He goes on to say that, “The ag equipment industry continues to suffer from a global ag downturn in large part due to low commodity prices. While some countries might benefit from their higher commodity production levels, the U.S. manufacturers are watching from the sidelines as a strong dollar is making them less competitive in the global marketplace. Of course, the strong currency is a problem that plagues all U.S. exports.”
The group’s expectations for the fourth quarter, he says, remain tempered as the U.S. dollar experiences its longest rally in 16 years. “With the global economic malaise, the slowdown in emerging markets, and the negative interest rates seen in several economies’ bond markets, investment is flowing to the U.S. and U.S. stocks, driving up demand for our dollar, inadvertently affecting our competitiveness abroad,” he says.
Learn more by visiting aem.org.