U.S.-made agricultural equipment exports continue to drop as commodity prices steadily fall.
In the first quarter of 2016, exports of U.S. manufactured equipment dropped 8 percent compared to the same time last year, for a total of $1.7 billion in foreign sales, according to the Association of Equipment Manufactures (AEM).
Europe and Central America saw an increase in exports. Europe gained 21 percent for a total of $495 million and Central America saw an increase of 11 percent for a total of $304 million.
Along with the U.S., Canada, Asia, South America, Australia/Oceania and Africa saw a decrease in agricultural equipment exports. The largest deficit was Africa, with a 32 percent decrease.
“Declines continued to be expected as global market drivers responsible for the ag downturn, such as low commodity prices and larger global malaise, remained in place,” Benjamin Duyck, AEM’s director of Market Intelligence, said.
He expects global sales to stay down for the foreseeable future.
“According to the results of the recent Agrievolution Business Barometer, the global recovery for our industry is not expected to be in sight for at least six months,” Duyck said.