This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings.
“Grain production levels are expected to be up in 2014, resulting in lower prices. Livestock receipts are forecast to be about flat with 2013 level. As a result, our forecast calls for 2014 cash receipts to be approximately $380 billion, down about 4% from 2013, which was the second highest level ever recorded. 2014 cash receipts, the number one predictor of farm equipment sales, are expected to remain at a historically high level, which should help keep farmers in a financially sound position.”
“there is already talk about among U.S. farmers looking ahead to the 2014 planting season, about adjusting corn acreage down by about 4% in favor of soybeans.”
“Looking at South America, Informa is forecasting a cut in planted corn area of about 10% in Brazil and of about 30% in Argentina.”
“If 2014 brings unfavorable growing conditions in any part of the world, the U.S., Brazil, and Argentina in particular, corn stock fees [ph] would fall, suggesting the commodity prices would stabilize.”
“what we will tell you is combines today are down year over year on orders. That’s reflected in our outlook. As you look at large tractors, however, it’s still a very, very strong order book. It is open through the end of May today. And so if you look at 8R tractors, our availability on 8R tractors is out to basically early June this year on the wheel tractor. Last year that would have been around April timeframe and then if you look at our 9R tractors again on the wheel variety, available is March this year, of 2014 last year, we would have been in the February timeframe. So both of those are running a little ahead.”