Despite current challenges, there are still opportunities for ag tire dealers, according to Jamey Smart, vice president, North America, Firestone Ag.
"At the end of the day, we need farmers to grow food" and it's the responsbility of ag tire dealers and manufacturers to help them, Smart told attendees of this week's K&M Tire Inc. meeting in Overland Park, Kan.
During his presentation, Smart said three factors are primarily impacting demand for ag tires in the United States: tariffs, weather conditions and commodity prices.
High input costs, escalating debt and interest rates also are influencing demand, he noted.
"We're seeing fairly high (farm) debt, with interest rates at relatively high levels. The cost of that debt is getting more expensive."
Trade disruptions "are impacting our entire world. They impact crops. They impact the cost of equipment. Farmers are not looking at making significant capital investments" and are instead opting to keep existing equipment running - a trend that will create more opportunities for tire dealers, he noted.
"Expectations are that the ag economy" will continue "to struggle a little bit," Smart concluded. (Click here to read a full-length MTD interview with Smart, published last month.)
K&M Tire Inc.'s annual meeting runs through Jan. 22.
