Trade-related concerns, along with higher fuel costs and increased crop output forecasts, have pressured farm equipment stocks in 2019. As a result, the group has underperformed the S&P 500 by about 7% so far this year. Despite these challenges, the U.S. Department of Agriculture (USDA) still projects net farm income to grow by 4.8% in 2019.

Stocks within the industry appear well positioned to keep this momentum rolling into 2020 as Washington and Beijing continue to iron out a three-phase trade deal. As part of an initial agreement, China is prepared to purchase $20 billion of agricultural products over 12 months in exchange for punitive tariff removals and increase that amount in future rounds of talks, Bloomberg reported in October. Furthermore, the

Read More At Article Source | Article Attribution