February 29, 2012

US farm equipment exports rise 23%

The agricultural machinery exports of the US rose 23% in 2011 compared with the previous year for a total of US$11 billion of machinery shipped to other nations, stated to the Association of Equipment Manufacturers (AEM).

This follows export growth of 12% in 2010 after a 2009 decline of 23% in the depths of the recession.

The AEM international trade group consolidates US Commerce Department data with other sources into global market reports for members.

"The positive global agricultural environment continues to spur business growth for US farm equipment manufacturers. Despite uncertainty in some markets, there remains a solid fundamental demand for food and fuel supplies to meet growing worldwide needs," stated Charlie O'Brien, AEM vice president agriculture sector.

AEM and its I Make America campaign have pushed for export-friendly policies that create and sustain American jobs. These include free trade agreements such as the US-Korea FTA being implemented, which will eliminate export duties on about 80% of US industrial products and about 67% of US farm-related products.

In recent AEM action, the association is calling for congressional reauthorization of the Export-Import Bank, with an increased exposure cap so more companies can benefit from its services. Ex-Im Bank is self-sustaining, and it focuses on small to medium-size businesses, since private lenders many times are unable or unwilling to extend them financing and insurance support.

Exports to Australia/Oceania led the way in 2011 with a 60% gain as the region took delivery of US$1.2 billion of US-made agricultural equipment. Agricultural machinery exports to South America increased 31% in 2011 with purchases worth US$1.3 billion, and exports of agricultural equipment to Central America gained 14% and totalled US$1.0 billion.

Export sales to Asia grew 17% to total US$937 million for 2011, and Africa's purchases of US agricultural machinery increased 28% to total US$334 million last year. Exports of agricultural equipment to Europe gained 31% for a total US$2.9 billion in 2011, and export business to Canada grew 10% and totalled US$3.4 billion.

The 10 countries buying the most US-made agricultural machinery in 2011: (1) Canada - US$3.4 billion, up 10%; (2) Australia - US$1.1 billion, up 64%; (3) Mexico - US$806 million, up 12%; (4) Brazil - US$517 million, up 53%; (5) Germany - US$454 million, up 28%; (6) China - US$328 million, up 13%; (7) France - US$313 million, up 14%; (8) Ukraine - US$293 million, up 153%; (9) United Kingdom - US$268 million, up 5%; (10) Russia - US$235 million, up 55%.