The farm equipment market saw strong sales at the start of 2023 as inventory levels of new equipment rebounded and farmers recorded record-high cash receipts.
Farm Credit Canada's senior economist Leigh Anderson says record-high crop receipts in 2022 put farmers in a strong financial position to absorb the rising interest rates and equipment prices.
"So far, year to date for four wheel drive tractors, we're seeing it relatively strong still. A little bit on combines, as well and agricultural implements. The other categories a lot of them are see softer sales so far in 2023 and what we expect for the remainder of the year."
FCC’s chief economist J.P. Gervais says farm revenue is a main driver in equipment sales.