Market Trends of Agricultural Haying and Forage Machinery Industry
This section covers the major market trends shaping the Agricultural Haying & Forage Machinery Market according to our research experts:
Government Support to Farmers is Driving the Market
The US government provides subsidies to the farmers in the form of direct payments, crop insurance, and loan for farm machinery. The graph represents a negative correlation between farm subsidies and the total net farm income in the United States. This correlation further benefits the farmers to stabilize the investment on farm equipment, including harvesters, whenever the net farm income falls. Moreover, over 95% of agricultural activities are mechanized in Canada. Empirical observations suggest that Canadian farmers buy over USD 2 billion worth of machines and implements annually, including an average of 4,000 grain, at a low-interest rate, combined with harvesters and balers, owing to the loans and credit facilities that help in the purchase of farm equipment in the country. The government subsidies for farm mechanization enhanc the usage of harvesters, thereby allowing the demand for tires to increase in recent years.
North America Dominates the Market
The market demand in North American is led by the United States, the largest agriculture-based country in the region. The country's highly evolved commercial agriculture sector is responsible for around half of the demand. The increasing area under forage crops, like alfalfa, is the main factor that is driving the growth of the market in this region. Advancements in technology have led to the introduction of self-propelled balers, which are equipped with technology that offers unprecedented ride quality and maneuverability. Apart from balers, self-propelled forage harvesters are dominating the market. Moreover, the same trend is projected to register in the future.
