Commercial Tire Dealer™
The market is transitioning to Increased Flexion and Very High Flexion tractor tires, says Bridgestone’s Tony Solon. The move to radial implement tires (like the Firestone Destination pictured on the planter) is another trend.
Farm tire market trends for 2015 New products, new tire technology may save the day
C
orn production in the Midwest was greater in August than was forecast. At the same time, coton production in the South was down year-over-year. Farm equipment sales in some segments have been steady, despite the change in the maximum allowable deduction on farm equipment purchases from $500,000 to $25,000. Farmers in California are optimistic about navel orange production, but that could change because of the efects of a lingering drought. With all the variables that can afect crop yields and pricing, it would seem almost impossible to accurately predict farm tire supply and demand. Modern Tire Dealer decided to try anyway. We asked experts from some of the largest farm tire manufacturers and marketers in the United States to share their insights into the farm tire market in 2015. Tey talked about a number of trends, including Increased Flexion (IF) and Very High Flexion (VF) radial technology. Michelin North America Inc., Bridgestone Americas Inc., BKT Tires USA Inc., Alliance Tire Americas Inc., Mitas Tires North America Inc., Trelleborg Wheel Systems Americas Inc. and TBC Corp. agreed to participate.
MTD: As the year winds down, crop yields are high and commodity prices are low. In addition, new farm equipment sales appear to be down. Do these factors bode well for farm tire sales in 2015? James Crouch, North America Farm Segment marketing manager, Michelin: It will be an interesting year for replacement ag tire sales. In the past, we have seen a direct correlation between the replacement market and original equipment sales. Tis was very consistent until a few years ago when the accelerated depreciation bill was passed as part of the Farm Bill. Section 179 of this bill allowed for farmers to deduct up to $500,000 of their taxable income in the frst year on up to $2 million of equipment purchased. This, along ALSO IN CTD with some of the highest commodity crop prices 2014 U.S. replacement farm tire ever and record high farm market shares: net incomes, created the Radial, bias and small farm perfect storm for farmers replacement tire shares . . . 46 to finally upgrade all of BIG plant, tires and investment: the equipment on their Bridgestone opens frst radial OTR farms. During this time, tire plant outside Japan . . . 48 Commecially Viable . . . 50
www.moderntiredealer.com
41
