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Future Of Agricultural Machinery in the United States . UNACOMA General Assembly 21 June 2007. Charlie O’Brien Vice President – Agricultural Services. Agriculture Equipment Industry. 60,000 employed in equipment mfg. $20.1 billion in revenue Total economic impact: 250,000 jobs

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future of agricultural machinery in the united states

Future Of Agricultural Machinery in the United States

UNACOMA General Assembly21 June 2007

Charlie O’Brien

Vice President – Agricultural Services

agriculture equipment industry
Agriculture Equipment Industry
  • 60,000 employed in equipment mfg.
  • $20.1 billion in revenue

Total economic impact:

    • 250,000 jobs
    • $82.0 billion in revenue

Source: U.S. Agriculture Equipment: Powering Jobs and Dollars, Global Insight, March 2007

number of farms in us
Number of Farms in US

US relies on approximately 100,000 larger

farms for most of its food and fiber production

agricultural trends
Agricultural Trends
  • Less than 2% of the U.S. population today works in agriculture.
  • It is estimated that at the turn of the 20th century, one farmer in the U.S. could feed 25 people, where today, that ratio is 1:130 (in a modern grain farm, a single farmer can produce cereal to feed over a thousand people).
  • With continuing advances in agricultural machinery, the role of the farmer will become increasingly specialized and rare.
  • Automation continues to be critical
u s flex fuel vehicles could exceed 22 million by 2015
U.S. Flex Fuel Vehicles Could Exceed 22 Million by 2015

(1) Currently 6.0 million flex fuel vehicles (FFVs; assumed growth of 1.4 million in 2007, 1.6 million in 2008, 1.8 million in 2009 and 2.0

million per year after 2010 (2010 and beyond data according to public statements made by Ford, GM and Chrysler).

(2) Calculated assuming 600 gallons of E85 used each year per FFV. (Source: EI A projects 500 gallons of gasoline per year per vehicle

assumes 20% mileage loss compared to conventional).

Source: Renewable Fuel Association

slide10
By 2025, America’s farms, forests and ranches can annually produce:
  • 86 billion gallons of ethanol
  • 1.1 billion gallons of biodiesel
  • 932 billion kwh of electricity
  • 15.45 quads of energy from biomass
2007 corn outlook
Corn 87 Million acres will be planted in 2007

Highest planted acres of corn since 1946

Production expected to fall short of demand pulling stocks of corn lower

8.7 million acres

Prices expected at $3.60/bushel up $.40

2.15 billion bushels used for ethanol production in 06 compared to 3.2 billion in 07, a 50% increase

2007 Corn Outlook

Compared to 2006

Corn Facts

equipment and biofuels
Equipment and Biofuels
  • Planting
  • Tillage/Chemical Application
  • Harvesting
equipment and biofuels19
Equipment and Biofuels
  • Hay/Forage Harvesting
  • Forestry
meeting the challenge research research research
Meeting the ChallengeResearch, Research, Research

“One Pass” over the field will be critical because of energy expense

the future
The Future
  • New Machinery Types meeting ethanol demand.
  • Biodiesel and alternative fuels
  • Further Commercialization of GPS
  • ISOBUS
  • Further efficiency gains
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