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Farmers face higher combine prices as U.S. farm income slides
The U.S. Department of Agriculture expects net farm income to fall 2.6% to $153.4 billion this year, while agricultural machinery producer prices hit 331.1 in July.
Yahoo Finance reports that a new top-end combine harvester for U.S. farmers can list for as much as $1 million, a price level that is leaving some operators reluctant to replace older equipment.
According to the outlet, the U.S. Department of Agriculture expects net farm income to slip to $153.4 billion this year, a 2.6% decline after inflation, with total cash receipts falling by $14.2 billion.
Yahoo Finance also points to rising costs for agricultural machinery, citing the Bureau of Labor Statistics producer price index for agricultural machinery at 331.1 in July, about 37% higher than January 2020.
The article says combine sales have fallen 56.1% in May from a year earlier, and tractor sales are down 21.6%, with at least one farmer describing plans to keep running a 1970s machine and relying on scrap parts when repairs are needed.