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The Insider – February 2020

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The Insider – February 2020 MIDWEST-SOUTHEASTERN EQUIPMENT DEALERS ASSOCIATION Serving farm, outdoor power, farmstead mechanization and industrial dealers FEB THE INSIDER 2020 TAKE NOTE CONSIDER HOW YOU WRITE THIS YEAR’S DATE We recently saw a caution against writing the date as, for example, “2/5/20,” but rather write the year out in full as “2/5/2020.” The reason? If you just write 2/5/20, it could potentially be changed to “2/5/2021” or FARMERS FEEL BETTER ABOUT THE FUTURE “2/5/2019.” If you agreed to begin The Ag Economy Barometer rose to of farmers said they expected to making payments on 2/5/20, a reading of 167 in January, a 17-point see U.S. ag exports increase over for example, someone could jump from December. Virtually all of the next five years. That began to claim that obligation began the rise in this month’s reading was shift in November, and last month, on 2/5/2019 and try to collect attributable to optimism about the 71 percent of respondents said they additional money. future. expect to see exports rise. A never-cashed check dated The Index of Future Expectations The Farm Capital Investment 2/5/20 could be changed to climbed 24 points to 179, while the Index, which captures farmers’ 2/5/2021, possibly making Index of Current Conditions—at willingness to make big purchases, the uncashed check active 142—was essentially unchanged does not yet reflect that longer-term again. from the December reading of optimism. The index fell 4 points 141. The survey coincided with below December’s reading to 68. MSEDA: Committed President Trump’s signing of the The index has ranged from the high to building the best phase-one trade agreement with 60s to low 70s since November business environment China. Producers have become and, despite the decline in January, for equipment dealers. more optimistic about the future of remains much stronger than it was agricultural trade in past months. As in early fall, when it ranged from the recently as October, just 55 percent high 40s to the high 50s. West Equipment Dealers Association and founding coalition member. “Whether you are in the business of selling boats, batteries, power tools or portable generators or you are operating a landscape business, you don’t want your customers exposed to the safety risks that come with illegal tampering,” added Mark Hennessey, CEO of the Iowa-Nebraska Equipment Dealers Association. The coalition will share intelligence and resources to EDA HEADS NEW COALITION maximize results. “The benefit of this coalition is that we are harnessing the individual efforts of each member OPPOSING ILLEGAL TAMPERING to the benefit of all. While each industry’s concerns he Equipment Dealers Association (EDA) has may vary, our common interests are in protecting the Tbeen coordinating industry right to repair efforts safety of product users and the environment,” added since 2016. “Together, we have worked in lockstep Higgins. with our industry partners at the Association of Equipment Manufacturers (AEM), Associated The Coalition has already begun to weigh in with Equipment Distributors (AED), the Truck and state legislators and will continue to do so as the state Engine Manufacturers Association (EMA) and our legislative session period ramps up. “We are pleased regional dealer association partners including the to lead this next step in advocacy for our industry,” Far West Equipment Dealers Association (FWEDA), said Kim Rominger, President and CEO of EDA. “This the Midwest-Southeastern Equipment Dealers is the largest coalition that we are aware of on this Association (MSEDA) and the Iowa-Nebraska issue and it will require the attention of legislators Equipment Dealers Association(INEDA).” explained moving forward.” Natalie Higgins, EDA’s Vice President of Government Relations. FARMERS RECEIVE FINAL ROUND In 2019, the industry saw an onslaught of so called OF 2019 TRADE SUPPORT “right to repair” bills filed in some twenty-three states. Higgins added, “We have coordinated closely with USDA earlier this month rolled out the final tranche our off-road and outdoor power industry partners and of payments to farmers hurt by global trade disputes. fought these bills each step of the way.” “We are very The influx of funds could bring total payments for 2019 proud to say that no “right to repair” bills have passed closer to $14.5 billion. in any state legislature,” stated Gary Manke, CEO of MSEDA, “but it has required a lot of hard work on the Prior to this distribution of aid, the Trump Administration part of our associations and other industry partners.” had paid around $11 This year, though, EDA has a new tool in its arsenal, billion to farmers and a coalition of over thirty organizations, in various ranchers for their industries, working together to thwart efforts 2019 losses, as well to undermine federal law and proliferate illegal as $8.6 billion for tampering. 2018. USDA approved the funds after the The “Coalition Opposed to Illegal Tampering” will be January thaw in trade weighing in on the widespread risks that vague and tension with China. overly broad “right to repair” bills across the United States and Canada. “Our coalition encompasses many In related news, different industries – but we all recognize the safety payments from federal crop insurance total more than and environmental risks that this type of legislation $6.4 billion for the 2019 growing season. That amount would create,” explained Joani Woelfel, CEO of the Far Page 2 makes this the costliest year on record, resulting primarily from losses covered from the spring and summer floods across North and South Dakota, Minnesota, and Illinois, according to data from the USDA. Steve Bowen, a meteorologist and head of catastrophe insight for an insurer, said that in terms of overall economic costs— including damage to agriculture, infrastructure and other property—the 1993 floods along the Mississippi and Missouri rivers remain the costliest in modern history at $38 billion in today’s dollars. Last year’s disaster cost about $20 billion. Source: Politico 2020 MIDWEST-SOUTHEASTERN OFFICERS & BOARD OF DIRECTORS ELECTED he Midwest-SouthEastern Equipment Dealers Association would like to express our sincere appreciation to Tall of the 2020 Board of Directors who give generously of their time and talents to provide leadership while looking after the best interests of the equipment dealer members in Arkansas, Delaware, Illinois, Maryland, Mississippi, Missouri, North Carolina, South Carolina, Tennessee, Virginia, West Virginia and Wisconsin. Front row Left to Right: Immediate Past Chairman John Maus, Greenway Equipment; Morrilton, AR; Chairman Jim McCartney, A.C. McCartney Farm Equipment, Durand, IL; Vice Chairman Bubba Cooper, Delta Group, Greenville, MS Back row Left to Right: Kevin Sommer, Service Motors Company, Dale WI; Mike Carley, Birkey’s Farm Store, Champaign, IL; Jeremy Brooks, Brooks Sales Inc, Monroe, NC; Jared Nobbe, Sydenstricker Nobbe Partners, Waterloo, IL Missing from picture: Ken Snow, Snow Tractor & Equipment, Ayden, NC & Chris Turnage, Tennessee Tractor, Alamo, TN The Insider - February 2020 Thank You for Your Support! n addition to our immense appreciation to all our Midwest-SouthEastern Equipment Dealer IMembers and Industry Friends who attended the 2020 Joint Annual Meeting, our sincere gratitude is extended to the many corporate Sponsors whose continued commitment and support helped the Deep Southern & Midwest-SouthEastern Associations’ Joint Annual Meeting be a grand success! It is through their gracious generosity and sponsorship that we are able to provide our Dealer Members attending the convention with an exceptional educational, networking and social experience. Please be sure to thank the foSponsors on the following page for their continued support and efforts to make the Dealers in attendance at our 2020 Joint Annual Meeting an entertaining and informative event. ANNUAL MEETING SPONSORS DIAMOND SPONSORS SILVER SPONSORS AGCO Bush Hog Case IH DLL Finance, LLC Federated Insurance Fastline Publications John Deere HUB International Kubota Investar Bank Mahindra Agriculture North America K.COE ISOM Southern Marketing Affiliates Siegfried Bingham P.C. Specialty Equipment Insurance Services PLATINUM SPONSORS Unverferth Manufacturing Co., Inc. AgDirect Basic Software Systems BRONZE SPONSORS Faubourg Private Wealth Apache Palco Henke Buffalo Nationwide Financial BigIron Auctions Tractor House/Auction Time.com Chaffe McCall, LLP Charter Software, Inc. GOLD SPONSORS Diversified Financial Gilsbar Equipment Insurance International Jones Walker, LLP Farm Credit Express OPOC.us HBS Systems Iron Solutions LaPorte CPAs & Business Advisors Machinery Scope / Finance Scope Sunbelt Ag Expo Warranty Processing Services, LLC Page 4 The Insider - February 2020 EQUIPMENT DEALERS ASSOCIATION (EDA) DEALER- MANUFACTURER MANUFACTURER RELATIONS NEWS SURVEY New Bobcat Dealer Agreement Review Available Clark Equipment Company d/b/a Bobcat Company has requested its dealers to sign a new dealer agreement for 2020. Although this is consistent with Bobcat’s past practices, the new version of the dealer agreement is substantially re-formatted. To assist you in making your decision about signing the new dealer agreement and understanding its terms, we had Lance Formwalt, MSEDA legal counsel review the new agreement, The Equipment Dealers Association (EDA) is once If you are a Bobcat dealer and would like a copy of again conducting their annual Dealer-Manufacturer the Mr. Formwalt review of the agreement, please Relations Survey. call the MSEDA office at 800-236-6332 or email [email protected] to request a copy. This survey provides dealers the opportunity to rate the manufacturers they do business with in important categories regarding Products (quality, AGCO DOUBLES FENDT availability, and technical support), Parts (availability, DEALERSHIPS quality, and return policy), Communication, Warranty and Marketing/Advertising support. If it feels like you’ve been hearing the Fendt name more than usual lately, you’re probably right. Of Responses are compiled anonymously and the four major brands acquired by AGCO since it distributed to manufacturers and dealers for was formed, Deutz-Allis (which was discontinued), comparison, analysis and review.
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