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“Demand will continue to increase,” says Ryan Loethen, president of CEAT Specialty Tires. Photo Credit: CEAT

Photo: CEAT Specialty Tires

strained this year — driving farmers to more value-priced products. According to the U.S. Department of Agriculture (USDA), the U.S. farm business is forecasted to decrease in 2023.

As such, we anticipate a slow transition to IF and VF replacement tires in mainstream farming operations and a gradual increase at the OE level on higher-horsepower tractors.

COX (Yokohama): As far as trends impacting farm tire sales in North America, the big story is commodity prices. Farmers have been paying historically high rates for fertilizer and diesel, but grain and meat prices have also increased, so they’ve got money in their pockets.

And they can only buy so much machinery, so the rest of the money will go into maintaining and upgrading existing equipment — and that includes tires.

MTD: Do you expect ag tire demand to atten, decrease or increase in 2023? Why or why not?

PODDAR (BKT): Worldwide, the demand for ag tires is expected to continue strongly due to various geopolitical factors, as well as other reasons like shake-outs in the tire industry – impacting the production output for quality tires.

In the U.S., demand may stay at as droughts and water shortages, (the) high in ation rate and slowing economy play their part.

Also if the logistics situation improves, then continuous ow of product will impact demand.

We at BKT are fully geared for the same and have already invested in a lot of capacity building.

LOETHEN (CEAT): Demand will continue to increase. e liquidity of farmers will be an issue, however, as input costs rise. Farmers will be looking for the best value proposition.

I do anticipate a decrease in demand for the premium tier-one products and an increase in demand for tier-two and tier-three tires that honestly are just as advanced, technology-wise, yet can be obtained at a lower cost. BERGER (Continental): Ag tire manufacturers are still working hard to fill the gap in dealer/distributor inventory from previous years. Demand in 2023 will likely continue to grow until those gaps can be filled.

Considering other external factors that negatively impacted tire production in 2022, the demand for ag tires may not flatten out until 2024 at the earliest.

ORLANDO (Firestone Ag): Following the trend since 2020, we’re anticipating further industry growth into 2023. We’re seeing it in the OE channel, as well as the aftermarket or dealer channel. Both channels are anticipating year-overyear growth.

CONNOR (GRI): Ag tire demand will increase in the aftermarket in 2023. OEMs will see an increase in tractor orders as supply chains catch up with demand.

Increases in allowable farming land under the Critical Reserve Program will increase the need for new equipment and aftermarket demand for tires.

GILLAND (Maxam): Maxam expects ag tire demand to moderately increase in 2023 versus 2022. Global OEM ag tire demand is predicted to increase versus 2022 demand … as they streamline their material shortages for the year and recover pent-up demand postponed into 2023.

Therefore, OEM demand will consume a considerable portion of existing ag radial tire capacity, which will take precedence over aftermarket or replacement needs due to the timing of OEM production lines and improved schedules.

Replacement market demand will also remain high as farmers and growers purchase replacement tires in 2023 due to unfulfilled/pent-up demand not supplied in 2022.

Lastly, due to high crop prices, farmers and growers will continue to buy new equipment and tires to amortize the impact on taxes on profit derived from their crop yields, with the objective to reinvest in their operations.

GRADEN (Michelin): Michelin expects to see continued growth in the agricultural tire industry, primarily related to unfulfilled demand due to the carryover from 2022, as well as continued population growth and the need for more food production in 2023 and beyond.

DASHIELL (TBC): Although a slight decline is expected in agricultural exports for 2023, according to the USDA, we expect ag tire demand to remain strong due to OE ag tire market needs carrying over from 2022 and growth in radial tires.

COX (Yokohama): I think 2023 is going to be similar to 2022, especially because 2022 was such an outstanding year.

If we go into the recession, as many economists are predicting, it could drop slightly, but I believe agriculture in general — and the demand for agricultural tires — will remain strong and consistent.

Agriculture is necessary. Farmers are still planting crops.

Even if the economy dips, farmers still have to feed people, so farm machinery will keep rolling.