N American Equipment Sales Slump
Construction and heavy equipment sales in North America are cooling off from recent record highs. Industry forecasts show that after a smaller-than-feared dip in 2024, equipment sales are expected to fall further in 2025. In North America, 2024 saw a 5% drop in unit sales as the market came off three years of record demand. Fleet owners had stocked up on new machines in 2021–2023, leading to “saturated” fleets full of late-model equipment. Now, with interest rates high and business confidence shaky, a sharper 2025 slowdown is anticipated, exacerbated by the administration’s import tariffs and unpredictable policy environment.
high Borrowing Costs Remain a Concern for farmers
U.S. Federal Reserve policy is keeping interest rates elevated, leaving farmers wary about financing ahead of spring planting. Last week the Fed held rates steady, but economists warn of uncertainty ahead. Farm groups are pushing for relief through legislation like the ACRE Act to reduce producers’ loan costs.
Fertilizer Prices Tick Up, but Fuel Costs East at the Pump
As spring planting nears, fertilizer markets are seeing mixed signals. Prices for some fertilizers have inched up, notably potash, amid looming tariff threats in the global trade backdrop. Nonetheless, many fertilizer types are still cheaper than a year ago. On the bright side for producers, diesel prices have fallen, providing some relief on the fuel front as farmers grapple with generally high input costs.
US-China Trade Tensions Threaten Ag Exports
Trade frictions with China are escalating, raising alarms in U.S. agriculture. The U.S. Trade Representative signaled concern over China’s dominance in ocean shipping and is weighing new port fees on Chinese carriers, which could disrupt U.S. meat exports via West Coast ports. Administration’s “America First” agenda may impose fees on Chinese-built ships, a move backed by shippers but one that could increase costs for American farmers (e.g. higher fertilizer and seed costs).
