U.S FARM EQUIP EXPORTS FALL 14%
But exports to Europe rise by 4%
A new report by the Association of Equipment Manufacturers (AEM) suggests overall exports of American-made farm equipment fell by 14% between January and September 2016.
Two areas did actually gain increases in exports from the US according to the report though. These were Europe with an increase of 4% for a total $1.2 billion and Central America with an increase of 16% for a total $978 million.
AEM’s Benjamin Duyck, director of market intelligence, said of the report “In the third quarter of 2016, U.S. agriculture equipment exports to the world continue to decline, and the year-over-year third-quarter exports were lower than year-to-date, with a 17.6 percent Y/Y decline, the highest Y/Y quarterly decline this year so far. “The ag equipment industry continues to suffer from a global ag downturn in large part due to low commodity prices. While some countries might benefit from their higher commodity production levels, the U.S. manufacturers are watching from the sidelines as a strong dollar is making them less competitive in the global marketplace. Of course, the strong currency is a problem that plagues all U.S. exports. “Our expectations for the fourth quarter remain subdued as the U.S. dollar is experiencing its longest rally in 16 years. With the global economic malaise, the slowdown in emerging markets and the negative interest rates seen in several economies’ bond markets, investment is flowing to the U.S. and U.S. stocks, driving up demand for our dollar, inadvertently affecting our competitiveness abroad.” The top countries that bought the most U.S.-manufactured farm equipment during January and September 2016 were: - Canada - $1.5 billion
- Mexico - $873 million
- Australia - $353 million
- Germany - $185 million
- China - $156 million
- France - $128 million
- Ukraine - $123 million
- Brazil - $115 million
- South Africa - $91 million
- United Kingdom - $89 million
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