AUDIO: Ian Sheldon, Ohio State University
An ag economist says the latest trade dispute between the U.S. and Canada could create new challenges for ag equipment manufactures.
Ian Sheldon with Ohio State University tells Brownfield, “Companies like John Deere have already been facing reduced investment from farmers over the past two to three years,” he says. “The sector has already been hurt by the tariffs that are affecting aluminum and steel. I think it’s just going to continue to put pressure on that industry.”
Canada recently implemented 50 percent retaliatory tariffs on steel, aluminum, and iron products going into the United States.
Sheldon says tighter margins are forcing farmers to think outside of the box.
“Look at maintaining existing equipment,” he says. “Maybe share equipment with your neighbors or contract out the use of your equipment to delay those new purchases.”
Sheldon says ongoing trade policy uncertainty continues to make it difficult for producers to invest in new equipment and replacement parts.
More than 35 percent of U.S. agricultural machinery and parts comes from Canada.
