13 March 1998

Farmers are holding back on big buys

FARMERS are still holding back from making large investments in machinery, reports New Holland Finance. Many, says the company, are waiting for the outcome of the Budget before planning any major purchases.

During February, NH Finance funded investment worth just under £9m – some 40% down on Feb 97 – with a trend towards the use of finance to fund lower value machinery.

"Interest in finance on smaller units and second-hand machinery has risen," says sales director, Allan Brownridge. "With sterling still strong, export markets for second-hand kit are unfavourable. As a result, stocks of used equipment are high."

Mr Brownridge predicts the industry will see an increase in the use of finance to purchase second-hand machinery as the deals offered to farmers become more competitive.