A Farm Credit Canada projection on farm equipment sales is a mixed bag.
FCC’s chief agricultural economist, J.P. Gervais, expects farm equipment sales to decline this year.
Gervais says new farm equipment sales fell by 13.8 per-cent last year, due to uncertainty around Canadian crop production and weaker commodity prices.
Higher prices for new equipment, a result of the weaker Canadian dollar, also contributed to a drop in sales.
Even though sales were lower last year, they were in line with the ten year average.
Gervais says some farmers are choosing leasing over buying, while others arfe buying and sharing farm equipment.
New farm equipment sales are expected to drop seven per-cent in 2016, although four wheel drive tractor sales will jump by 24.5 per-cent.
Gervais expects total farm equipment sales to recover next year, rising seven per-cent.
He says the higher sales projection reflects an optimistic outlook and stronger cash receipts.
He says sales will recover next year because of promising farm cash receipt projections.
Crop receipts are expected to increase 5.8 per-cent this year, with a further 3.8 per-cent increase in 2017.