A Profile of the Farm Machinery Industry, 2nd Edition

CHAPTER 4

Outside Market Forces

4.1 Worldwide Agricultural Commodity Prices

There are numerous outside forces that impact the farm machinery industry. Ultimately, the success or failure of any particular farm machinery firm is at least partially dependent on the success or failure of its core constituency of customers—farmers. Therefore, any number of outside forces can cause a spike, or a decline, in sales. A drought or flood, pest infestation, bumper crop conditions, changes in consumer taste preferences, or a downturn in the market all have major impacts not only directly on the farmer, but also on all the companies from which the farmer buys inputs and machinery. Similarly, any type of government action that impacts the livelihood of the ...