Market Trends of North America Agricultural Sprayers Industry
This section covers the major market trends shaping the North America Agricultural Sprayers Market according to our research experts:
Favorable Government Subsidies is Driving the Market
Farmers in the region have been able to avail timely subsidies in the form of agriculture equipment loans at flexible interest rates and repayment schedules. This, in turn, has helped even the small-scale farmers to invest in primary agricultural equipment including sprayers. For instance, the US government extends loans on farm equipment through USDA Direct Operating Loans, USDA Operating Microloans, and USDA Guaranteed Operating Loans. The 2018 Farm Bill has further increased the farm loan limit for the US farmers to better access the credit for high capital costs related to agriculture machinery including sprayers. In countries, such as Canada and Mexico, price support is another category of subsidy that helps in maintaining the high cost of the domestic crop all through, thus, stabilizing the disposable income of the farmers, which is further used for heavy investments on farm equipment including sprayers. This gives a boost to the demand for tires used in sprayers in the region.
United States is Dominating the Market
The need for sustainability in agrochemical management has induced the demand for highly-developed mechanical sprayers in recent years. The major demand in the region has emerged from self-propelled sprayers equipped with high-technology tools, such as automatic section control, data transmission, and direct injection, which further ensures accurate spreading of agriculture chemicals. According to USDA, the number of farms has witnessed a declining trend in recent years, with the average farm size of the remaining farms increasing to 443 acres in 2018. Moreover, the average age of the US farmers was recorded at 59.4 years in 2017, as per the recent Agriculture Census. Hence, due to a greater amount of labor required on the field to meet the increasing demand for food crops, the farmers have been turning to self-propelled and tractor-mounted sprayers, which require high-quality tires for all-round functioning with the right amount of traction.
