Home 5 Ag Stories Sales of Precision Farm Services Expected to Slow

Sales of Precision Farm Services Expected to Slow

by Ken Root

Farmers are cutting costs and even their most prized technology is going to have to wait until the bottom line is black again.

Following the downturn in the agriculture economy, a majority of precision farm equipment dealers expects sales to slow. Precision Farming Dealer magazine reports only 40% of dealers expect some growth in their precision farming sales due to the continuing headwinds in agriculture. Still, precision farm equipment dealers remain optimistic. The magazine’s 2016 Benchmark Study found only 21.1% of dealers expect any fall off in revenue, a considerable improvement from last year’s results when 35.5% of dealers predicted declining revenues. The percentage of dealers reporting declines of seven percent or less in 2015 revenue was about two percent less than forecast in last year’s benchmark study. When it comes to predicting strong growth, however, fewer dealers expect a significant gain in sales dollars in the precision segment of their business. The survey shows just one in ten dealers are projecting revenue increases of over 8% for this year