Navigating the Terrain of Rising Prices The Purdue Ag Economy Barometer suggests that farmers are thinking twice about purchasing farm equipment, with rising interest rates playing a significant role in their decision-making. In the past, whenever interest rates shot up, farm operators tended to play the long game. They stretch the replacement cycle of their farm equipment, often resulting in a deceleration of equipment sales. In a DIS survey of ag equipment dealers across North America , 80% of respondents stated rising product prices as an imminent challenge (second only to hiring/retaining talent). It's evident that affordability is at the forefront of concerns for ag equipment dealers.
What are some of the biggest challenges you expect to face in the year ahead? Check all that apply.
15 %
Cybersecurity
87 %
Hiring / retaining talent
37 %
Attracting new customers
28 %
Customer retention
80 %
Rising product prices
44 %
Parts shortages
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
What This Means For Dealers: • Given the rise in interest rates, understanding, and empathizing with your clientele's financial constraints is paramount. Offering flexible financing options or loyalty programs could be beneficial. • Diversify your offerings , perhaps by increasing the range and quality of used equipment, to attract a broader clientele.
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