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 4,800 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

                                Recent Developments

                                Nov 14, 2022 - Farmland Values Hit Record Highs
                                • Small farmers are being priced out of the market for farmland as competition from investors and real estate developers drives up prices across the country, The New York Times reported in November. In South Dakota, farmland values surged by 18.7% from 2021 to 2022, one of the largest increases in the nation, according to the most recent figures from the Agriculture Department cited by NYTs. Nationwide, values increased by 12.4% to $3,800 an acre, the highest price on record since 1970, with cropland at $5,050 an acre and pastureland at $1,650 an acre, according to the USDA. In a recent survey conducted by the National Young Farmers Coalition, young farmers said finding affordable land for purchase was the top challenge this year. Much like first-time buyers being shut out of the housing market, some experts warn of far-reaching consequences for the farming sector, including sales of farm machinery.
                                • Beginning in November 2022 qualified small business landscape professionals in California can purchase discounted zero-emission lawn mowers, blowers, and other landscape equipment through a new category of funding offered through vouchers from the California Air Resources Board’s Clean Off-Road Equipment Voucher Incentive Project (CORE). The CORE program’s new funding category has an allocation of more than $27 million of vouchers for professional landscape services operated by small businesses or sole proprietors. The voucher program is designed to make it easier for landscapers to purchase zero-emission professional equipment for their businesses and encourage manufacturers to expand their zero-emissions offerings in the market.
                                • Landscapers are going through a remarkably stressful period, the 2022 Landscaping Stress Survey found. More than 75% of landscapers polled reported a mid to high level of stress in 2022 and 79% of respondents said that they are more stressed in 2022 than they were in 2021, Turf magazine reported in September. The primary cause of their anxiety is wholesale plant shortages exacerbated by a decrease in quality and availability of plant materials, with no predictable end to the shortages in sight, the survey, released in August, found. In fact, 60% of nurseries estimate that plant shortages will last throughout 2022 per the Plant Shortage Report released by GoMaterials. Landscapers’ suppliers are also under pressure as they struggle to keep up with customers' demands. One survey respondent recognized that “there are fewer suppliers and more competitive pressures,” impacting the industry.
                                • Drones are being put to work on farms and in research trials. Applications for simple drones include providing real-time images of fields, while larger drones equipped with spray tanks can apply fungicides and insecticides, Farm Industry News reported in September 2022. Increasingly, drones are becoming an essential tool for agronomists and farmers. Agronomists are using drones to obtain highly accurate stand counts in corn, both in fields and plots, while field observations help farmers make informed replant decisions.
                                Get A Demo

                                Vertical IQ’s Industry Intelligence Platform

                                See for yourself why over 60,000 users trust Vertical IQ for their industry research and call preparation needs. Our easy-to-digest industry insights save call preparation time and help differentiate you from the competition.

                                Build valuable, lasting relationships by having smarter conversations -
                                check out Vertical IQ today.

                                Request A Demo