Does the U.S. ag equipment industry really contribute much to the American economy?

People in the agricultural equipment industry probably do not need a study to tell them the answer to the title question is YES, but few people know just how much the U.S. agriculture equipment industry really does contribute to the country's economy. Now that information is available, thanks to the study, "U.S. Agricultural Equipment: Powering Jobs and Dollars."

In summary, here are the study's resulting figures and analyses of the agricultural equipment industry's contributions to the American economy:

* More than $82 billion in economic activity is generated by the ag equipment industry.

* Nearly 250,000 highly-skilled jobs in all 50 states, are provided by the industry

* A payroll of $8.53 billion per year goes to employees working directly and indirectly in the U.S. agriculture equipment industry.

* $63 billion in revenue is generated directly through the two major segments--manufacturing and dealer/wholesale merchandising.

* The industry accounts for more than $82 billion in economic activity when materials, services and supplies purchased by these segments are included.

* Exports to other countries contribute greatly to the strength of the U.S. agriculture equipment industry. In 2005, for example, exports of $6.2 billon worth of agriculture equipment represented over 30 percent of the total revenue in ag equipment manufacturing that year. During the five-year period of 2001-2005, exports rose 49 percent, almost double the increase in total U.S. manufactured goods.

* Many regions of the U.S. have made significant contributions to achieving these industry figures. Using data in terms of number of employees and wage levels, the top contributing states are: California, Florida, Georgia, Illinois, Iowa, Kansas, Minnesota, Nebraska, North Carolina, Ohio, Pennsylvania, Tennessee, Texas and Wisconsin.

The study was commissioned by the Association of Equipment Manufacturers (AEM), the Farm Equipment Manufacturers Association (FEMA), and the North American Equipment Dealers Association (NAEDA) and conducted by Global Insight, Inc. Results were released in March 2007.

The study was developed as a resource for members of Congress to use as it prepares to reauthorize the current farm bill, which expires September 30, 2007. The results provide an in-depth look at the entire farm equipment sector and clearly show that its economic impact extends far beyond making the equipment used on farms. Researchers analyzed both the direct and indirect economic activity of the industry as well as sector employment and agriculture equipment exports.

"The study outlines how a healthy farm economy boosts the agriculture equipment industry and generates jobs and dollars for rural America," says Paul Kindinger, president/CEO, NAEDA. "It concludes sound governmental and trade policies, strong cash receipts and limited price shocks are factors in maintaining a healthy farm bottom line for farmers and ranchers."

The entire study is available online. It can also be accessed and downloaded at www.naeda.com where it is referenced under the "headlines" section of the homepage. For more information about the study, contact one of the following individuals from the study's sponsoring organizations:

* Charlie O'Brien, AEM; 414-298-4157,

[e-mail]

* Bob Schnell, FEMA; 314-878-2304,

[e-mail]

* Mike Kraemer, NAEDA;

636-349-6203,

[e-mail]