Agriculture equipment resorts to agricultural activities. There is a wide range of Agriculture equipment, namely tractors, plough, cultivation equipment, and harvesters. The market is expected to grow at the rate of 5.9% during next six years during 2016-2022. Due to increase in acquisition of technology driven agriculture equipment and rising demand for food because of increase in population contributes to the factors that are originating from the rise in agriculture equipment market. As per the survey, during the year 2015, Asia-Pacific produced the lucrative revenue for around 40% share in the total agriculture equipment market, subsequent to North America and Europe. Inferior commodity prices are the outcome of Farmer’s income. The US Congress in the Congressional Research Office conducted Agricultural Equipment Market Forecast that says year 2016 is anticipated to be the third repeated year deteriorating farm income as opposed to the fact that the price of commodities and land has risen from decades. The break-even point between profits & losses for corn and soybeans are USD 4 per bushel and USD 10 per bushel respectively. Agriculture implants sector is expected to perform average growth in the US in next 5 five years.
The association of Equipment Manufacturers-a Milwaukee-based trade organization for off-road equipment manufacturers and suppliers states that the small tractors are still the leaders, they gain profit in the middle of 2016 middle as compared to agricultural tractors.
The retail sales in the US of farm tractors has increased to 3% beneath 40 horsepower as opposed to last year and improved by 12.7 % till date. But in case of 2 wheel tractors has augmented by 2.8 percent under 40 to 100 horsepower in the month of June but has decreased by 1.1 percent till date. Due to which, the sale has come down to 21.6 % of 2 wheel drive of 100 plus horsepower tractors. Simultaneously, the sale of 4 wheel tractors has decreased by 34.3 % every year and losing by 31.3% till date. By correlating the sales it shows 8.0% growth for the month of June but sales till date shows decline by 23.3%.
Two innovative alliances and trends has been formed with local agribusinesses according to The United States Agency for International Development(USAID) and i.e. between Babban Gona and Hello Tractor for encouraging the expansion of Nigeria’s agriculture sector, private division policy and US management agriculture. And this association between both the organisations costs around USD 2 million predicted that the final outcome will improve entrance of enhanced seeds, exclusive tractors and moreover, shows the advantageous place for more than 45,000 small scale farmers over the Federal Capital Territory and seven states.
By virtue of these partnerships, USAID has been addressing the company’s shortcomings by mounting right to novel agricultural materials and automation, by enlarging market potential for small scale farmers, and by providing superior class technical consultative services. Babban Gons’s company takes into consideration problems of small scale farmers by devising powerful cooperatives called Trust Groups, and these groups facilitates them to enter into new markets and sell at best prices.
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