Today Joe Delmont presents the 2021 forecast for Combine production in North America. This forecast has been developed by Carol Turner, Senior Analyst of Global Operations at Power Systems Research. Carol provides annual production forecasts for important equipment applications.
Transcript
Welcome to the PSR PowerTALK podcast produced by Power Systems Research.
00:06
From Power Systems Research, I’m Joe Delmont, editor of PSR PowerTALK.
Today we’ll discuss a data point covering 2021 North American production of combines. When we talk about North America in this podcast, we mean the United States only.
This forecast has been developed by Carol Turner, Senior Analyst of Global Operations at Power Systems Research. Carol provides annual production forecasts for important equipment applications.
00:39
Combines, overall, boost crop output and farm income. We expect that production of these units in North America this year will be about 6300 units. That would be up about 400 units or 7 1/2% from 2020. The gain is mainly due to increased optimism by farmers regarding their future prospects.
01:05
In 2020 we saw a huge drop from the previous year. 2020 production was 5850. Down nearly 8%, or about 500 units, from 2019. Even with an increase this year, annual production will still be slightly less than that of 2019, when 6400 units were built. Production this year will be about flat with 2019.
01:33
As much as 30% of US production of combines is shipped worldwide.
COVID-19 related factors played a role in the decline in 2020, of course; especially for parts availability and the drop in orders for new machinery.
Sales of combines picked up in the fourth quarter last year after a tough spring for sales.
Curt Blades, Senior VP of Agriculture for AEM, “The increase reflects farmer sentiment about the future of their operations.” he says. “It’s really a good early indicator of whether folks are enthusiastic about where markets are headed.”
This is a favorable sign. A few years ago, farmers were reluctant to buy or trade in pricey equipment because of lower commodity prices. In 2017, for example, production and purchases of new combines rebounded. The gain was attributed to an increase in commodity prices, such as corn and soybeans, that peaked in 2013 and 2014.
Expect production of combines in the US to gain as much as 10% by 2025.
02:47
This data is pulled from two of the major Power Systems Research databases: OE Link — the database of OEM production and forecast data, EnginLink — which provides engine production, forecast, and specification data.
Look for Datapoint reports every month in the PSR PowerTALK news report and on this podcast.
Contact us for more information on other off-road products and Ag related equipment.
03:17
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