Farmers Understand Sustainability and Tractor Sales Mixed
From the Ag Information Network, this is your Agribusiness Update.
**McKinsey and Company research reveals that a vast majority of American farmers have an understanding of sustainable farming and a willingness to adopt the practices.
Adoption of practices is correlated with perceived return on investment.
Practices that require only behavioral changes, such as reduced or no-till, have the highest adoption levels at 68 percent.
Despite the perceived benefits of sustainable practices, farmers expect costs to remain high.
**The Farm Credit Administration received a quarterly report on economic and financial conditions affecting agriculture, along with an update on the Farm Credit System.
Interest rates remain high after inflation came in higher than expected, but Federal Reserve rate cuts are possible later in the year.
Ag producers are facing tightening margins, with cash receipts expected to decline, with high input costs likely to persist.
Crop prices have declined because of elevated supplies.
**For the second straight month, unit sales of 100-plus horsepower ag tractors increased in the U.S.
New data from the Association of Equipment Manufacturers says March sales jumped 3.2% compared to last year, following February’s increase of 2.8%.
However, total year-to-date sales of ag tractors and combines are below 2023’s pace.
Tractors are down 13.3% while combines fell 20.4%.
