Provide lines of credit and/or subsidize farming equipment
Research and Markets 23 (ResearchAndMarkets.com is the world's leading source for international market research reports and market data. 4-20-2023, "United States Agricultural Equipment Industry Analysis Report 2023-2028: Assistance to Farmers Through Loans & Subsidies and High Demand for Autonomous Equipment Creates Positive Factors for Growth", No Publication, https://www.prnewswire.com/news-releases/united-states-agricultural-equipment-industry-analysis-report-2023-2028-assistance-to-farmers-through-loans--subsidies-and-high-demand-for-autonomous-equipment-creates-positive-factors-for-growth-301803911.html)
Further, an increasing number of technologically advanced agriculture equipment and implements is the solution to save money and time and increase yields. And the government is keen on increasing the farm mechanization rate among farmers, boosting the demand and sales of new agricultural equipment. The mechanization of farms is deemed necessary for the US agriculture sector as it has the potential to improve food production and reduce the labor shortage.
Governments must adopt effective and sustainable farming practices to ensure food security and safety. While the level of agricultural mechanization is low, the country is implementing the concept of precision agriculture to increase productivity. Precision farming is a management concept under which crops are grown according to the specifications of the soil. The focus on agricultural mechanization in developing countries will increase the demand for agricultural equipment.
KEY HIGHLIGHTS
The US has over 333.2 million food consumers and is the largest food market in North America. The country witnessed a massive increase in farm mechanization in terms of agricultural and industrial productivity.
The agriculture equipment market in the US grew by 2.8% in 2022 from 2021. The increase in crop production and agricultural equipment sales was due to the favorable climate in 2022.
The US government plans schemes and initiatives to facilitate credit and improve agriculture-related operations, which will contribute to the growth of the overall value chain of the market.
MARKET TRENDS & OPPORTUNITIES
Shortage of Agricultural Laborers
The lack or unavailability of manual labor drives farmers and farm owners to invest in agriculture equipment to perform otherwise manually completed tasks, such as soil preparation for planting, furrowing, mulching, and harvesting. Southern and Eastern U.S. require intensive manual labor during soil preparation, reaping, and harvesting.
Income and growth opportunities in the non-agricultural sector, low wages in the agricultural sector, and extreme work conditions reduce the percentage of the workforce engaged in agriculture. The drastic shortage of farm laborers will increase the demand for farm machinery in the U.S. agricultural equipment market.