Economic recovery will drive demand for agricultural products domestically and abroad
New York, NY (PRWEB) January 17, 2015
Combine harvesters are farm machinery that combine the tasks of harvesting, threshing and cleaning grain crops. They are primarily used in the harvesting of field crops, and end-users include a range of farmers, including those that harvest corn, soybean and wheat. IBISWorld Economic Analyst Lucas Isakowitz says in the updated report “the industry benefited from the improving economy over the past five years; low interest rates in the years since the recession encouraged farmers, who postponed large purchases during the recession, to invest in farming equipment beginning in 2010.” Additionally, the healthy price of cash crops, such as corn and soybeans, further allowed farmers to increase their investment in agricultural equipment. As a result of these factors, industry revenue is expected to increase in the five years to 2015.
In spite of favorable growth over the five-year period, the Combine Harvester Manufacturing industry is set to struggle in 2015. The agricultural price index, which represents prices received by farmers for all US agricultural products, is set to decrease in 2015. More specifically, high yields and less stringent ethanol quotas are poised to cause the price of corn, soybean and other biofuel crops to decrease in 2015. According to major player Deere and Company, these unfavorable commodity prices and falling farm incomes could cause the sale of agricultural machinery in the United States to drop considerably.
In the years to 2020, the industry is set to experience steady growth. Improving economic conditions will drive demand for agricultural products both domestically and abroad, raising demand for agricultural machinery. “However, rising interest rates and depressed corn and soybean prices may constrain demand for industry products,” Isakowitz says in the updated report. Consequently, while the industry is set to grow in the next five years, growth will likely be slower than in the previous five years; industry revenue is forecast to increase by 2020.
For more information, visit IBISWorld’s Combine Harvester Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
This industry manufactures combine harvesters. Combines, also known as threshers, combine the tasks of harvesting, threshing and cleaning grain crops. They are primarily used in the harvesting of field crops, but also small fruits and other food crops. This industry excludes hay and straw combine harvesters.
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