New farm equipment sales were down in Canada this year and are expected to be lower again in 2016 and 17.
Farm Credit Canada says sales were down 11 per cent through the first three quarters of this year.
4 wheel drive tractor sales were down 29 per cent, combine sales down 20 per cent.
FCC predicts another 4 point 9 per cent drop in new equipment sales in 2016 and a 2 point 7 per cent drop in 2017.
The forecast suggests the lower drop in 2017 will come with a recovery of farm cash receipts.
FCC Economist Leigh Anderson says producers are making investments in farm equipment where the payoffs are larger - which often means buying used equipment.
He says while profit margins in Canadian agriculture remain positive - finding efficiencies remains critical for farming operations to remain competitive.
