Perspective

In these uncertain trade times, with tariffs and shifting trade relationships and agreements, manufacturers, dealers and farmers are all trying to figure out how to best prepare for what’s next. Since no one has a crystal ball, that is easier said than done.

A representative from McGavin’s Farm Equipment in Walton, ON, comments “With our customers in mind, we did everything we could to prepare for this. We secured and pre-stocked our lot with old price equipment but that inventory only lasts so long. At the end of the day, if the cost of manufacturing is going up then the price is going up. There’s nothing we as a dealership can do about it, only hope that tariffs come off so prices adjust back down.”

Jan Ter Keurs, a cash crop farmer in Strasbourgh, Saskatchewan, grows over 15,000 acres of corn, canola, wheat and flax. For the past 18 years, since he came to Canada, Ter Keurs has traded equipment every year. “We need reliable machinery to run our business and you can’t get better than new,” he says.

That has now changed. At the moment, he’s not trading at all. In fact, for the first year in a long time, he has purchased used machinery. Ter Keurs says, “I feel like we’re going to be hanging onto this equipment for a lot longer than normal.” In his area, drought was also pretty bad in 2018 and the yield suffered considerably.

The same sentiment was repeated by Ian Matheson of Embro, Ontario, who owns RM Matheson Farms Limited with his older brother Scott. Together they farm 1200 acres of corn, soybeans and barley, provide custom spraying, planting, tillage and harvesting services and operate an 850 sow, farrow-to-finish operation. Recipient of the County of Oxford Stewardship Award, Ian says, “We’re just going to have to stretch our equipment longer. We are fortunate because our used equipment is holding its value so what is flipped fairly regularly, we’re just going to have to run for longer and extend its life span.”

Although not an ideal situation, the Mathesons have decided the best strategy is to adapt and be prepared to recognize and respond to opportunities. “When opportunities present themselves, we’re just going to have to jump on it. We have to be prepared to pull the trigger when we see a deal.”

Ultimately, the changing trade realities are impacting all members of the equipment supply chain. Dealers and growers are doing what they can to adapt and mitigate risk. The strategy for growers, specifically, is to approach machinery investments with caution.