Farm and Garden Machinery Wholesalers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 4,500 farm and garden machinery wholesalers in the US distribute machinery, equipment, and related parts used in the agricultural, farm, lawn, and garden industries. Major product categories include farm tractors; lawn and garden machinery; harvesting machinery; new land preparation, planting, and cultivating machinery; and irrigation machinery. Firms may sell new and used equipment or rent equipment. They also offer warranty, maintenance, and repair services.
Variability In Commodity Prices
Fluctuations in commodity prices -- driven by global market conditions -- affect farm income and farmers' ability to purchase new equipment.
Highly-Seasonal Demand
Demand for farm and garden machinery is highly seasonal and affected by weather and climate.
Industry size & Structure
The average farm and garden machinery wholesaler operates from a single location, employs about 26 workers, and generates $20 million in annual revenue.
- The farm and garden machinery wholesaling industry comprises about 4,500 firms, employs about 116,000 workers, and generates $90 billion annually.
- The industry is concentrated at the top and fragmented at the bottom; the top 50 companies account for 50% of industry revenue.
- Wholesalers include independent dealers for major machinery manufacturers, such as John Deere and Case New Holland Industrial. A dealership group operates multiple retail locations.
- The largest farm dealership groups include Titan Machinery (Case), RDO John Deere, Rocky Mountain Equipment (Case), and James River Equipment (John Deere).
- Farm tractors of 40-99 horsepower account for 44% of all tractors in operation according to the USDA. Tractors of 100 or more horsepower represent 31%, followed by tractors of less than 40 horsepower at 25%. Farms are also using over 662,000 hay balers, 323,000 grain and bean combines, 64,000 forage harvesters, and 18,000 cotton pickers and strippers.
Industry Forecast
Farm and Garden Machinery Wholesalers Industry Growth
Recent Developments
Jul 4, 2024 - Record High Wholesale Prices
- Wholesale prices for machinery and supplies are at record highs despite a recent decline in sales and demand. In May, producer prices for machinery and supply merchant wholesalers rose 4.2% to a new high compared to a year ago after rising 11.8% in the previous annual comparison, according to the latest US Bureau of Labor Statistics data. Industry sales fell 9.1% in March on declining demand for farm equipment. Employment by farm and garden machinery wholesalers was relatively unchanged in April year over year, while average industry wages dipped 0.8% over the same period to $29.67 per hour, BLS data show.
- Farm equipment manufacturer Deere & Co is laying off nearly 600 production workers amid declining demand for tractors and other equipment, the AP reported in July. The job cuts are concentrated in farm country in Iowa and Illinois. In May, Deere reported a more than 15% decline in revenue, the third consecutive quarter of year-over-year sales declines. Executives at the farm equipment giant said they expected further sales declines in the second half of the fiscal year and that it would continue to “take proactive steps to reduce production and inventory.” Previously, Deere had informed some workers at its seeding and cylinder operations in Moline, Illinois, that more than 120 production employees would be placed on indefinite layoff at the end of June. Falling crop prices dampen farmers’ demand for tractors and other farm equipment.
- Growing concern over sustainability and global warming, along with increasing urbanization, is driving the installation of green roofs, according to the April issue of Turf Magazine (TM). Installation and maintenance of green roofs atop commercial and residential buildings presents a new opportunity for landscaping companies like Philadelphia-based Roofmeadow Services, which says “vegetative roofs” are an increasing and profitable part of its business. The benefits of green roofs include providing shade to the building, reducing ambient heat, providing a stormwater buffer, keeping the building cool in the summer and warm in the winter, providing flowers for bees and other insects, and cleaning the air, TM reports. Green roofs also provide recreational spaces that elevate the quality of urban life, according to AZOBuild, an online platform for the construction industry. Walmart has installed green roofs atop some of its massive stores. On a smaller scale, the trend is catching on with homeowners.
- Rising mechanization in the US agriculture sector and the availability of subsidies to help farmers purchase farm machinery are likely to be primary factors driving growth in the agricultural machinery market, according to a new forecast from Mordor Intelligence (MI). The US agricultural machinery market size, estimated at $39.56 billion in 2024, is expected to reach $53.7 billion by 2029, growing at a CAGR of 6.3% during the forecast period (2024-2029), per the MI report. Advances in ag technology, including robotics, autonomous tractors, plowing and cultivating machinery, planting machinery, sprayer irrigation machinery, and haying and forage machinery, can help farmers boost productivity and produce food at low costs to meet growing demand. Still, stubbornly high interest rates, which affect initial procurement costs, and high maintenance expenditures will be a barrier to the ag machinery market, per the report.
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