Exports of U.S.-made agricultural equipment ended 2014 with a 29.2-percent drop compared to 2013, for a total $8.51 billion shipped to global markets.

All world regions recorded declines – double-digit except Central America. Leading the way were Asia, Europe and Canada, according to the Association of Equipment Manufacturers (AEM), citing U.S. Department of Commerce data it uses in global markets reports for members.

Exports by World Region

Year-end 2014 U.S. agricultural equipment exports by major world regions compared to year-end 2013:

*Canada dropped 38.4 percent, for a total $2.64 billion

*Europe declined 30.8 percent, for a total $1.95 billion

*Central America decreased 7.1 percent, for a total $1.09 billion

*South America dropped 18.9 percent, for a total $1 billion

*Asia fell 34.9 percent, for a total $754.9 million

*Australia/Oceania fell 19.7 percent for a total $732.1 million

*Africa decreased 21.2 percent, for a total $348.7 million

Exports by Top 10 Countries

The top countries buying the most U.S.-made agricultural machinery during 2014 (by dollar volume) were:

Canada – $2.64 billion, down 38.4 percent
Mexico – $920.3 million, down 6.9 percent
Australia – $640.1 million, down 22.1 percent
Brazil – $407.2 million, down 21.2 percent
China – $319.4 million, down 34.9 percent
Germany – $292.8 million, down 37.7 percent
South Africa – $241.1 million, down 20.6 percent
France – $203.6 million, down 40.8 percent
Russia – $198.1 million, down 34.7 percent
United Kingdom – $174.4 million, down 16.3 percent
Market Analysis Overview

While a decline of nearly one third is steep, the drop in U.S. AG equipment exports was not completely unexpected. In 2014, a record harvest led to lower commodity prices and falling farm incomes, leading to a deterioration in farm economics worldwide.

Lower crop prices caused an uneven market in Europe, while in Asia, the declines mostly focused on China. In South America, the Brazilian market, which remains highly subsidized, experienced not only lower commodity prices, but also a delay in the government’s financing program. Overall, conditions for the U.S. remained more positive as it was supported by smaller equipment sales and an improved livestock/dairy sector.

More Economic Resources

A recent report by the global Agrievolution Alliance indicates that U.S. exports follow the trends of new tractor sales in its member markets.

The public report on the 2014 global market for agricultural tractors is available on the Agrievolution Alliance website.

The full Agrievolution tractor report is available to AEM members through the AEM website (www.aem.org in Market Intelligence section).

AEM’s Agricultural Equipment Global Markets report (and select other reports) are available to the public through the AEM store (www.safetymaterials.org). AEM members may access the report via the AEM website/Market Intelligence section.

AEM also offers custom detailing exports by 10 Digit HS code to various countries worldwide, as well as an overview of export market opportunities by product, on request. For more information, contact AEM’s Benjamin Duyck, director of market intelligence (bduyck@aem.org).

Source: Association of Equipment Manufacturers (AEM)