GE Capital See Farmers Considering Equipment Upgrades After Late Spring Season
MISSISSAUGA, ON--(BUSINESS WIRE)--Dealers, manufacturers and suppliers of agriculture equipment are expecting a better or similar harvesting season compared to last year, which should positively impact equipment sales, according to survey results released today by GE Capital’s Commercial Distribution Finance Canada (CDF) business.
“As a leading provider of financing to equipment dealers and OEMs across North America, with a strong, long-term presence in the ag industry, we are a valuable partner for farm equipment companies”
More than two-thirds (77%) of the respondents expect the harvesting season to be the same or better than last year, while 20% expect it to be worse. A similar majority of the respondents (78%) characterized the seeding season as the same or better than last year, while 18% thought it was worse.
“The cold spring temperatures resulted in a late seeding season, which will put pressure on farmers to harvest quicker this year,” said Howard Shiebler, president of CDF’s Canada business. “Reliable equipment is critical when the harvest season is compressed, so many farmers will upgrade their equipment to ensure a successful harvest.”
“As a leading provider of financing to equipment dealers and OEMs across North America, with a strong, long-term presence in the ag industry, we are a valuable partner for farm equipment companies,” said Neeraj Mehta, CEO of GE Capital, Commercial Distribution Finance. “We specialize in flexible financing that enables dealers to have the right amount of inventory as the harvest approaches.”
The majority of survey respondents felt that their inventory levels were about the same (48%) or higher (38%) than last year, with just 12% feeling their inventory is lower. “Dealers are really paying attention to their inventory levels this year and will need to be adequately stocked if demand rises,” said Shiebler.
The survey was conducted June 17-19 at the annual Farm Progress Show in Regina, Saskatchewan. Respondents were dealers, manufactures and suppliers based in the Prairie provinces of Alberta, Saskatchewan and Manitoba.
CDF has reinvested into this industry through increased credit capacity and an expanded, experienced salesforce. In the last two years, CDF’s North American agriculture financing portfolio is up 150%. CDF works with manufacturers and distributors to create inventory finance programs that enable dealers to stock a broad selection of products. Inventory financing, also known as floorplan financing, is an important element of a successful manufacturer-dealer business model. Manufacturers and distributors can benefit from enhanced product flow and increased sales opportunities, while dealers can obtain improved terms and credit availability.
About GE Capital, Commercial Distribution Finance
GE Capital, Commercial Distribution Finance provided $34 billion in financing for more than 30,000 dealers and more than 3,000 distributors and manufacturers in the U.S. and Canada in 2013. Programs include inventory and accounts receivable financing, asset-based lending, private label financing, collateral management and related financial products. For more information, visit http://www.gecdf.com/ or follow company news via Twitter (http://twitter.com/GEInventoryFin).
GE Capital offers consumers and businesses around the globe an array of financial products and services. For more information, visit www.gecapital.com or follow company news via Twitter (http://twitter.com/GECapital).
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