Record corn prices are putting a little extra cash in farmer's pockets, and they're spending it on farm equipment, benefiting local companies like Burco Sales in Independence. "Very busy," said Shane Beatty with Burco. "Not enough hours in the day."
INDEPENDENCE (KWWL) -
Deere & Co. is setting yet another all-time record for earnings.
Deere reports more than $1 billion in net income during the second quarter. Part of what's driving that success is a big boom in farm equipment sales.
Record corn prices are putting a little extra cash in farmer's pockets, and they're spending it on farm equipment, benefiting local companies like Burco Sales in Independence.
"Very busy," said Shane Beatty with Burco. "Not enough hours in the day sometimes."
Whether it's an International, New Holland, or Deere, lots of farm equipment is flying off implement dealer lots across the country.
"The farm economy's been pretty good the last few years, so guys are finding an opportunity to expand and grow and need larger equipment every year, and turns out sales have grown along with that," Beatty said.
In fact, the Association of Equipment Manufacturers says U.S. combine sales are up a whopping 59 percent this spring as compared to last year. Tractor sales have spiked more than 6 percent.
Beatty says newer equipment helps farmers get the most bang for their buck, which is critically important with corn cashing in at $7 per bushel.
"You get newer stuff, you get lower hours, stuff that's going to cost you less in the long run," said Beatty.
And when equipment is selling well, there's a big ripple effect for Iowa's economy.
"It brings a lot of money into the community," Beatty said. "They come here and spend money, we go out and spend money, and it allows us to get into more lines, more brands as far as tires and stuff. So you're helping everybody from the big guy to the small guy."
And if crop prices continue to climb, that will bankroll even more investments in Iowa farms.
Increased farm equipment sales is certainly valuable to Iowa agriculture. The industry supports some 400,000 jobs, and contributes more than $71 billion to the economy each year.
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