Farm equipment sales will remain weak, with scattered bright spots possible

Ag equipment sales are expected to remain light, according to a report today from the national Association of Equipment Manufacturers, a trade group that works in both the farm and construction equipment industries.

Reasons for pessimism include still-low commodity prices, a general decline in farm income and tighter credit.

Some bright spots still may be out there, according to a report from the California Farm Bureau.

"Farm equipment dealers say they expect a mixed sales year in California for 2010," CFB reported in its weekly e-letter. "Dealers in farming areas where commodity prices were good last year, such as rice, look for a good year, according to the Far West Equipment Dealers Association. Dairy and hay growers may enter the equipment market if their commodity prices improve in 2010 as expected. Sales of most farm equipment declined last year."

- Owen Taylor