A FARM Weekly survey held last week revealed an underlying confidence in the ag sector in the face of the Covid-19 virus.
And we has found the same level of confidence talking with machinery dealers this week.
While there remains unanswered questions on supply of new equipment and parts, it is fairly evident the supply chain has taken a major broadside.
Manufacturers already are signalling longer lead times and rising costs, shipping schedules have been disrupted, air freight is limited and predictably freight charges are on the rise.
Already CNH Industrial has announced that, in light of the supply chain constraints caused by COVID-19, it is suspending the majority of its European assembly operations for a two week period.
It is highly likely other major manufacturers in North America will be making similar announcements soon.
On the other side of the story is a weak Australian dollar boosting commodity prices while increasing the cost of imported machinery.
Machinery dealers are making appropriate decisions in light of new social distancing laws with a few headaches looming, including a major one - providing a full team of service technicians.
Good opening rains will undoubtedly see farmers increase plantings - with the lure of higher prices - which will place increased pressure on dealers in terms of service and parts supply.
It's a time where everything has become a moving feast that changes daily.
The main focus at this time should be good communications.
Maybe leaving your tractor in the paddock away from the farm house and sheds to be serviced is one idea to maintain 'social distancing'.
One dealer also has set up a parts counter outside his dealership where customers can pick up their requirements without going inside the dealership.
And for machinery requirements, one branch manager told Torque he was considering a buy-back guarantee where a customer could purchase a used machine and gain a full refund once he purchases new equipment.
"I'm mainly thinking headers at the moment," he said.
"Some forward orders might not arrive in time for the harvest, in which case a farmer can buy a used header until his new machine arrives and the amount he pays can be paid off on the new header when it arrives."
There are a lot of decisions being made this week by dealers to ensure customers remain the priority.
Customers can help by communicating with dealers about their requirements so they will be in a better place to make informed decisions.
This is team ag in action
