Machinery prices set to rise
With many farmers benefiting from weak sterling pushing up crop prices and an anticipation of an increased Basic Payment Scheme cheque, some farmers will be looking to purchase machinery over the coming months. But beware; the falling pound is having a significant effect on imported machinery prices.
With most manufacturers importing into the UK, farmers looking to purchase new machinery need to be braced for price increases with some manufacturers suggesting that prices could go up by 10% to counter the exchange rate effect.
On the flip side, weak sterling is having the opposite effect on the export of used equipment which has now become much more attractive.