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 Industry Structure, How Firms Opertate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.

Call Preparation Quarterly Insight, Call Prep Questions, Industry Terms, and Weblinks.

Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.

Industry Profile Excerpts

Industry Overview

The 4,800 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.

Highly Seasonal Demand

Demand for farm and garden machinery is highly seasonal and affected by weather and climate.

Variability In Commodity Prices

Fluctuations in commodity prices, which are driven by global market conditions, affect farm income and the ability to purchase new equipment.

Industry size & Structure

The average farm and garden machinery wholesaler operates out of a single location, employs about 21 workers, and generates $18.7 million in annual revenue.

    • The farm and garden machinery wholesaling industry consists of about 4,800 firms that employ about 101,100 workers and generate $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
                                Source: Vertical IQ and Inforum

                                Coronavirus Update

                                May 14, 2022 - Farmers Reluctant to Invest
                                • As supply chain issues continue to roil the farm machinery industry, dealers are struggling to keep parts and other items in stock, including many petroleum-based products like oil and also batteries whose price points have increased steeply, according to Real Agriculture. Dealers are also reporting shortages of items such as filters, bearings and items made of polyurethane, where suppliers are saying they can’t fulfill some orders. Forecasting the needs of customers and managing inventory has become “a whole new ballgame” for parts managers and store owners as some items just simply aren’t available, one dealer said. The ongoing effects of COVID are still being blamed for setbacks and delays in replenishing inventory in both the US and Canada, along with labor shortages and transportation issues.
                                • Farm and garden machinery wholesalers that offer service and maintenance can have difficulty gaining access to repair software and manuals from manufacturers. A company in Spain has just brought a product to market in the US that provides diagnostic modules for all the major equipment manufacturers and for a wide range of equipment. Greater access to diagnostic and repair software and manuals could allow wholesalers to boost service revenue.
                                • The global garden equipment market is forecast to grow 2.6% annually to reach $24.6 billion in 2028, according to Fusion Market Research. The forecast is based on analysis from surveys of garden equipment manufacturers, suppliers, distributors, and industry experts. Equipment includes lawn care machinery, brush cutters, planting equipment, turf management equipment (sports fields), and floriculture apparatus.
                                • US net cash farm income, a demand indicator for farm and garden machinery, is projected to rise by $1.9 billion (1.4%) to $136.1 billion in 2022. Net cash farm income includes cash receipts from farming and farm-related income, such as US government payments. Cash receipts for animals and animal products are expected to increase 8.9% in 2022 to reach $213.3 billion, while crop receipts are projected to grow 5.1% to $248.6 billion. Direct government payments are forecast to decline 57% to $11.7 billion, which is in line with pre-pandemic levels of government support. Farm support from the federal government reached a high of $45.7 billion in 2020 due to ad-hoc COVID-19 relief payments. Higher production costs will partially offset higher cash receipts in 2022 with cash expenses forecast up 5.1% from a year earlier.
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