By: Rob Wertheimer
We’ve been writing for five years or so that US and Canada farms have sharply elevated levels of tractor horsepower, relative to history, to recommendations from ag services, and to best in class international peers. Analysts who focus on units sold badly miss the size of the upcycle, and wrongly look at current high cycle sales as a trough. We get asked a lot whether there’s been a change in farming practices that demands more horsepower. This note looks at plowing/tilling operations, where changes have materially reduced horsepower needed, globally.