The Impact Of Agricultural Equipment On Agricultural Machinery Industry
In 2011, the U.S. Environmental Protection Agency (EPA) mandated new emission standards that impacted agricultural machinery. The new standard affected all non-road diesel engines. “The Tier 4 rule is intended to reduce diesel engine emissions with fuel control and exhaust system modifications.” (Nowatzki, 2010) The new standards caused a significant impact on the machinery manufacturing industry by forcing companies to design and develop engines that are environmentally friendly.
Sales in the agricultural equipment manufacturing industry rely on the demand for farm equipment. The demand of equipment is correlated with the income of the agriculture industry. As the price drops for these crops, the farms profits are lost. “The USDA forecast a 27% decline in U.S. net farm income in 2014 due to the declining crop prices.” (Agricultural & Turf Equipment Division Is a Long Term Growth Driver for Deere) This affects the sale of…