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 Acute farm machinery shortage looms, warns Case IH 

Acute farm machinery shortage looms, warns Case IH

29 Jan, 2008 08:35 AM
Buoyant world farm commodity prices, plus the 'sniff of a good season' here in Australia, are the key drivers of looming farm equipment shortages.

With large swags of broadacre equipment imported, any boom in worldwide equipment sales is going to make it hard for Australian dealers to get into production-line queues, particularly in the US.

And that's going to have a major impact on farmers' buying decisions in Australia.

"The (world) market's going 'gangbusters', with nearly 60pc of our combine harvesters already sold for the year ahead," says Case IH regional brand director, Hylton Taylor, just back from a global conference in the US.

What's more, Case IH says last year's Australian equipment import requirement forecasts were made on the assumption of a continuing nationwide drought.

"But we are now predicting far higher imports needed for Australian broadacre farming this year," Mr Taylor said.

Other brands are believed to be in the same situation.

Case IH company warns that a combine harvester made to Australian specifications takes between seven to eight months to arrive here, following placement of an order.

So farmers who want to ensure they obtain a new header for harvest later this year are being urged not to delay their purchasing decision.

"If they wait until the last minute, like the trend over the last three years, farmers are not going to get their machines," Mr Taylor said.

The situation is being exacerbated by the company's forward order book.

This currently is running at 40pc above last year's orders at the same time.

Case IH says incentive to persuade farmers to place orders earlier than previously has focussed on 'some good' finance deals, extending through until November of this year.

The rapidly-developing mood of optimism (among farmers) is gathering pace, despite increases in the cost of inputs, notably fuel and fertilisers, which continue to impact heavily on farmers' bottom lines.

Mr Taylor says many farmers are budgeting on minimum wheat prices of $350/tonne, hoping to make good returns.

"Most also have the sniff of a good season ahead and that's what's driving people to buy," he said.

"With good soil moisture profiles, they know they are going to get a winter crop this year.

"And the pay-back from (higher) farm commodity prices will certainly be worth the punt."

As a further plus, Case IH says the year ahead will provide an ideal opportunity for machinery dealers to shed many of their trade-ins which have accumulated over the last three to four years.

SOURCE: National farm machinery news, updated daily on FarmOnline. Further details in Rural Press weekly farm newspapers, January 31.

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