Equipment manufacturers are being squeezed by plummeting demand and tightening access to cash, according to Kip Eideberg of the Association of Equipment Manufacturers. While many have gotten assistance through the government’s Paycheck Protection Program (PPP), he said a number of their members have not been able to access the forgiveable loans.
“As many as 20% of those companies that qualify and that applied were unable to access the loans,” Eideberg told Clinton Griffiths on Farm Journal Live. “And so for those companies, they're running out of time and they're running out of cash.”
Eideberg said his organization is pushing the Trump administration and Congress to support the agriculture and construction industries to put them in a better position to purchase equipment.
“We've been urging Congress and the White House to make sure they protect the biofuels industry,” he said. “We cannot afford any more ethanol plants going out of business. We've been talking to the White House repeatedly about making sure that they tell the Chinese government to hold up their end of the bargain of that Phase One agreement to make sure they buy U.S. commodities, and that we get a Phase Two deal with going here as soon as possible to again help shore up commodity prices.”
“Another opportunity, as we see it, for helping boost demand for equipment, is infrastructure investment, and that would obviously help a lot of farmers. A lot of their roads and bridges and locks and dams desperately need to be updated. Now would be a great time to do so with lots of Americans sitting at home, it's a great time to invest in our infrastructure and get some construction out there. And that would obviously help as well with demand for equipment.”
Watch the full analysis from Farm Journal Live with Clinton Griffiths in the video player above.