U.S. tariffs will impact the new farm equipment sales on Canadian Prairies

U.S. tariffs will impact the new farm equipment sales on Canadian Prairies

Rocky Mountain Dealerships Inc. reported on the fall in sales due to new taxes. Experts inform, that this situation will affect the rate of the Canadian dollar and will serve as a reason for a more serious drop in the value of shares.

A recent social survey of farmers showed a negative trend to reduce purchases of new equipment due to high prices and unprofitable.

According to the Canadian Association of Dealers, this recession is seasonal and does not reflect the whole picture of the market. Arthur Smith, a financial analyst, claims that sales will continue to grow only next year. Despite the steady growth in sales of new stuff, a stable trend of capital outflow from the industry remains. Canadian dealer intends to solve the problem by refinancing and creating a stabilization capital. The uncertain situation has created a negative trend of reinvestment of finance on the farmer market in Canada.

Company’s shares fell significantly due to the current price fluctuation. Rocky Mountain Dealerships' income for the 2nd quarter of 2018 was 6.3 million dollars, which is higher than the previous year's figure. New pricing standards have a negative impact on sales. The current trend can change the company's expected annual revenue. Sales of second-hand agricultural machinery increased in the last quarter.

The total number reached 18 percent. This indicator is not profitable for producers of new stuff, which need an active sales market. The new Canadian dealers marketing campaign is aimed at attracting more buyers. Given the recent crop loss due to the heat wave, the trend towards a decrease in sales will increase significantly.

MORE NEWS: Abnormal heat in Manitoba: farmers lost a part of their harvest

Agriculturalequipment Agriculture Business Economy RockyMountainDealerships
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