the northeast dealer - jan 2016

DEALERNortheast

The Newsletter of NoRThEAsT EquipmENT DEALERs AssociATioN, iNc.JANUARY 2016 c Vol. 18, No. 202www.ne-equip.com

After a couple false starts with the State of Vermont permitting process, construction is finally underway for Champlain Valley Equipment’s new store in Derby, VT. The new store is being built on a 30 acre lot about 0.25 miles up the road from the current Derby facility and is meant to replace the current store, which was originally built in the 1950s as a dairy barn. The Kubota, New Holland and Case IH dealership is one of 5 locations for Champlain Valley Equipment in Vermont, and Josh Provost, general manager of the Derby location and a partner in the dealership, says the store had outgrown the outdated facility. “At the new Derby location, we are increasing the size of the showroom from the 1,500 square feet we have now to about 5,000 square feet,” he says. “We are also increasing the ceiling height in the showroom from 8 feet tall to 14 feet tall.” In addition to expansions to the showroom, Provost says parts storage will triple in the new facility and the shop space will increase by about 5,000 square feet. They will also increase the ceiling heights in the shop from 13 to 27 feet tall. The low ceilings in the current facility’s shop have proved to be a hindrance on the teams’ productivity. “With the new building, we expect to see the largest increase in efficiency in our shop,” Provost says. “In our current shop, the doors aren’t wide or tall enough for the larger equipment, so right now we have to break the equipment down in the yard before bringing it in. We also have to set up all of the equipment in the yard, which limits us during the winter months when we can’t be working outdoors. With the increased size of the new shop, we will be able to work in the shop throughout the year and save time not having to break equipment down outside and then rebuild it.” With the additional space, Provost says the dealership will be able to add two additional techs. While designing the new store, Provost says efforts were taken to make the building energy efficient. The building is completely panelized with a membrane roof, which Provost says has a longer life and lower maintenance

continued on page 6

IN THIS ISSUE:3 Observations from the Field4, 6 In Memoriam / Association News8 RCI Safety is Now DEKRA Insight10-11 Trucking Compliance Seminar12 Setting Your Shop Up for Marketing & Efficiency17 Most of the U.S. Rented Farmland is Owned by Non-Farmers18-19 Tax Tips

20, 23 Summary of FMCSA's Final Rule To Mandate Electronic Logging Devices 21 NEDA - What's in it for me?22 Implementing Important Dealer Protections Without Creating a Negative Customer Experience24 Sales ... Rigged in Favor of Hard Workers26-28 Equipment Industry News

ADVERTISER’S:2 Haylor, Freyer & Coon 7 Electronic Merchant Systems5 NY Farm Show13 BallastStar13 Fastline29 Federated Insurance

NEDA Salutes our Supporting Advertisers. It is our pleasure to list the names of those advertisers who support NE Dealer each month. We trust their advertisement will be remembered when goods and services are required by you, our dealer members. It is good to do business with companies who are interested in doing business with you and your industry association.

Champlain Valley Equipment Builds New Derby, Vermont Store

To see if you qualify, call Patrick Burns at Haylor, Freyer & Coon 800-289-1501, Ext. 2148or fax a current declaration page to 315-684-9801 or call

Ralph Gaiss (Executive Director of NEDA) at 800-932-0607 for more information.You may also visit us at www.haylor.com

Northeast Dealer | JANUARY 2016 … 3

This publication is designed to provide accurate and authoritative information in regard to the subject matter co v ered. It is furnished with the understanding that the Northeast Equipment Dealers Association, Inc., the publisher, is not engaged in rendering legal, accounting or other professional service. Changes in the law duly render the information in this pub-lication invalid. Legal or other expert advice should be obtained from a competent professional. Some of the editorial material is copyrighted and may be reproduced only when permission is obtained from the publisher and the association.

Board of DirectorsOfficers

JOsH AHeArN, President EDA OPE Dealer Council MemberAhearn Equipment, Inc. / Spencer, MA508-885-7085 • Fax: 508-885-7261Kubota, Cub Cadet, Stihl, NAPA [email protected]

rOBerT sPOHN, First Vice President / Treasurer / Past President - 2005Sharon Springs Garage / Sharon Springs, NY518-284-2346 • Fax: 518-284-2774AGCO, White, Hesston, Gehl, Kubota, Allis, [email protected]

JOHN e. KOMArisKY, 2nd Vice President / Immediate Past President 2015, 2012Main & Pinckney Equip Inc. / Auburn, NY315-253-6269 - FAX 315-253-5110New Holland, Simplicity, Brillion, Bush Hog [email protected]

BriAN cArPeNTer, Chairman of the Board for EDA, St.Louis, MOChamplain Valley Equipment / Middlebury, VT802-388-4967 • Fax: 802-388-9656New Holland, Case IH, Kubota, [email protected]

rALPH GAiss, CEO and Executive Vice Pres.800-932-0607, Ext. [email protected]

DirecTOrs

scOTT BAir, Director ElectMountain View Equipment, Inc. / Plattsburgh, NY518-561-3682 • Fax: 518-561-3724John Deere AG/CCE, Claas, Kuhn Knight, Kverneland, Stihl, Husqvarna, Frontier, Servis, [email protected]

BrAD HersHeYHoober, Inc. / McAlisterville, PA717-463-2191Case IH, JCB, [email protected]

eD HiNes, Past President 2014, 2001Hines Equipment / Cresson, PA814-886-4183 • Fax: 814-886-8872Case IH, Gehl, New Idea, Cub [email protected]

NATe sHATTUcK, Past President - 2010Devon Lane Farm Supply, Inc. / Belchertown, MA413-323-6336 • Fax: 413-323-5080Yanmar, Landini, Monosem, Ferris, Simplicity, Stihl, [email protected]

scOT L. sTANTON, Past President - 2003Stanton Equipment Inc. / East Windsor, CT860-623-8296 • Fax: 860-627-9832John Deere Ag., Knight, Athens, [email protected]

WeNDeLL WALLDrOff, Past President - 2002Walldroff Farm Equip., Inc. / Watertown, NY315-788-1115 • Fax: 315-782-4852New Holland, Hesston, Woods, White-New Idea, AGCO, [email protected]

DAviD WArNerWarner Tractor & Equipment Inc., Troy, PA570-297-2141Case, Case/IH, Takeuchi, LinkBelt, LandPride, Agr. & Construction [email protected]

NoRthEAst EqUipmENtDEAlERs AssoCiAtioN

128 Metropolitan Park Drive • Liverpool, NY 13088 800-932-0607 • www.ne-equip.com

I hope that everyone had a happy and healthy Holiday Season and that all were able to truly enjoy some quality time with family and friends! Based on feedback I’ve received from our dealer members there seems to be cautious optimism that total sales volume will continue to hold steady if not see minor gains in 2016. I hope they’re right!

I’m also happy to report that we’re mak-ing progress on the legislative fronts in both Pennsylvania (HB1553) and Vermont (S.224

and H.328) thanks to the work and dedication of our member dealers. This winter and spring have the potential to become very busy! Please be prepared to help and more especially contact your elected representatives and lobby their support. Constituent/“Grassroots” contact is the most effective advocacy action/tool! January is a great time to formulate a marketing plan for the year ahead. The process often includes a review of last year’s goals, accom-plishments and challenges, identifying what worked, what didn’t and why. An effective marketing plan is far more than a budget number and a list of media outlets; it’s your dealerships blueprint for success! Your marketing plan should clearly identify your customers, your competition, goals, and expectations, establish a plan of action and corresponding staff responsibilities. The first step is to layout the task, include sales figures, short and long term goals, strategic plans, and be mindful not to “clutter” the process. Ensure goals are clear, concise, measurable and achievable. Next, you’ll want to do some analysis – take a snap shot of your deal-ership. Who are your customers? What are your market(s), specialties, potential new niches? Identify what your dealership strengths are and items in need of improvement. Break out your market share by segment and expected gross profits. Be sure you know and understand who makes up your customer base as a whole and by market segment. It’s critical you know who they are, how many, demographics, their needs and expecta-tions. Examine your competition; what are their strengths, weakness, what is their value proposition – market share? Who are your partners? How can they help you achieve your goals? What is the business climate? Are there factors outside of your control that could impact sales – laws, economic, technology? Once you’ve gathered all the information, you’ll be able to begin building your action plan. Lay out a vision with a focus on establishing

continued on page 4

Observationsfrom the FIELD

Tim WentzField Director717.576.6794

4 …”Committed to Building the Best Business Environment for the Northeast Equipment Dealer”

Observations continued from page 3

how to most effectively use your dealership’s strengths to overcome both inter-nal challenges and your competitions strengths. Take time and ask; is the plan realistic and do-able? The next step is to identify the best way(s) to communicate your value as a dealership and within each customer segment; communications and methods may or may not be the same for all customers! The final and most critical step is to communicate your plan to everyone at the dealership. Explain the action plan to all your staff, lay out what role/respon-sibilities they will play and what success will mean for the “team”! Great mar-keting plans and dealerships maximize every customer contact! Every employee and manager must recognize their role, who “their” customers are and what the dealership can do to ensure “their” customer’s needs and priorities are exceeded.

When you REAp the benefits of membershipyour pRoFits will follow!

DONALD B. SNYDER Donald B. Snyder, 81 of Muncy, died suddenly Wednesday, December 9, 2015. Born August 21, 1934 in Watsontown, he was a son of the late Wilbur and Goldie (Beaver) Snyder. On June 26, 1954 he married the former Sherry L. Kelley, who survives. Together they celebrated 61 years of marriage. Donald was a 1952 graduate of Watsontown High School. He served in the Army National Guard for four years and the Reserves for four years. Donald worked in the family business, SNyDER EqUIpMENT, INc. / formerly Web Snyder Inc. in Watsontown, pA, since its beginning in 1947 and continued to be involved in the business with his son and daughter-in-law. Donald was a past president of penn Jersey Equipment Dealers Association and served on their board of directors for many years. He was a member of the Jackson corners Hunting club at Buttonwood. An avid collector of Massey-Harris-Ferguson tractors and implements, he was also a charter member of Friends of Massey. He took great pride and enjoyment in restoring, showing and speaking about his tractor collection.

All Gave Some,

Some Gave All!

Never Forget!!!

ROBERT WATSONMEMORIAL TOY AUCTION

LeClar Bros. Auction ServiceFriday, February 26, 2016 | 5:00p

Building 2, Arts & Home Center


Champlain Valley Equipment Builds New Derby, Vermont Store continued from page 1requirements than other options. Radiant heat was also included throughout the building and all of the lights use LED bulbs. Another bonus to Champlain Valley Equipment’s new location is they are currently only using 7 acres of the lot. “We have another 23 acres remaining and its agricultural land so we can plant crops on it. We plan to crop the land and use it for field demos on site,” Provost says. When the group first began designing the building, Provost says it was important to get all of the employees’ input on what they would like to see in the new dealership. “When we started this project we just had a piece of construction paper with the idea on it. Then we met with all the store managers from our 5 locations and got their input. We laid out a lot of the building from there, but also talked to each of the individual departments — the parts manager, service manager and the individual service techs — to see what they needed as far as the layout in their spaces. We then tweaked those ideas based on what was practical and what we thought would be effective,” he says. One such practical and effective measure that was taken in the new building was the consolidation of all of the store’s parts into one building. “In our current facility we have parts storage in three separate buildings on site, so the techs have to spend time walking back and forth to gather their parts,” Provost says. “With the new building, we will have the entire parts department in one building with a loading dock for parts shipments.” With construction currently underway on the new facility, Provost says he would like to be in the new building by the beginning of January. “The staff is really excited for the new building,” he says. “Everyone knows the investment we’ve put into the new store and we’ve even hired some additional staff because we anticipate an increase in our traffic flow with the new store.” (See more at: http://www.farm-equipment.com/articles/12244-champlain-valley-equipment-builds-new-derby-store#sthash.9iNewzHr.dpuf ).

StuDent InternShIp InquIryBelow is a website inquiry on a student interested in working this summer (2016) in the sales and marketing business for Agricultural.

mEgAN ClANCYPlease contact her email:[email protected]

Hello, I was wondering if there is an internship available for the summer of 2016. I'm currently going to SUNY Cobleskill for agriculture business, and I would like to get into the sales and marketing side of agriculture for an occupation.

Thank you, Megan Clancy


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DEKRA Insight has recently united an elite group of safety organizations—including RCI Safety. By assembling these powerful companies and their services, we can better guide clients in evolving both their organizational culture and operational environment, in a truly integrated manner. DEKRA Insight represents the collective expertise of these businesses—each an institution in safety: •BST •Chilworth •OptimusSeventhGeneration •RCISafety •RoundTheClockResources •RussellConsulting With solutions spanning behavior, engineering, culture and leadership, reliability and testing, and data analytics, DEKRA Insight offers a uniquely robust approach to safety. I believe this unification will yield great benefits for you, going forward. Yet, I know that transitions can raise questions, and I want you to have a clear understanding of what is changing—and what is not. If you do have more specific questions, please don’t hesitate to contact us.

Q. Are the company email addresses changing?

A. Yes, we are moving our email addresses to “dekra.com” domain.

Underground storage tanks information. While UST’s are not regulated under the SPCC rule, transfers of oil are. We contend

that the transfer is only covered under the rule if a load rack is present. The EPA contends otherwise. So, we are being more diligent with clients who have UST’s, If memory serves, there are only one or two NEDA clients with UST’s. While not being something I’m overly concerned with your members, please be on the lookout for UST’s when out on inspections. Another area we are revisiting is tank inspections and integrity testing. We have rewritten this section and added deviations to ensure compliance. These changes stem from being engaged with several EPA inspections over the past few months. One of the things we continue to observe is that there is no conformity between EPA regions. Inspectors in one may be cooperative while in other regions they are combative. The manner in which we handled the above issue were never in contention in the past. The inspections, we are aware of, all involve bulk fuel plants. That lends to the fact that we have not had an inspection, beyond insurance audits, in regions 1, 2, or 3. This covers your service area. If you become aware of one of your members undergoing an SPCC inspection, please let us know so that we can assist, phone number below. We’ll soon be officially launching the DEKRA Insight brand, and at that time I’ll reach out again.

Robb Roesch, Product [email protected]

1 800 888 9596 ext. 222www.dekrainsight.com

RCI SAFETY IS NOW:


FLAT RATE GUIDEfor combines and ag tractors over 40HP

If you have ever wished for an all-makes flat rate guide which listed realistic repair times for your service shop, then we be-lieve your wish is granted. It covers combines and agricultural tractors over 40hp. The manufacturer lines are:

Allis-Chalmers Deere New Holland AGCO Ford Steiger Case IH Versatile Case IH Kubota White Caterpillar Massey Ferguson

Equipment from 1980 or newer is covered in the book, and listed repair times are for internal engine components, drive-train components, and selected external compo-nents such as injection, fuel, hydraulic, and water pumps, radiators, air conditioning compressors, alternators, and starters.

Why Develop Such a Resource?There are many objectives that were followed in analyzing the entire program, but the main objectives were as follows:

(1) To promote accurate estimates based upon flat rates that are compiled us-ing ‘’real world” data.

(2) To promote the use of flat rates in equipment dealer service centers as a distinct billing choice.

(3) To enable dealership service managers to make realistic estimates on important jobs without having a great deal of technical expertise...open the door to a “Wider spectrum of management candidates to fill service management/supervisory positions.

(4) To facilitate “all makes” service where appropriate.(5) To assist dealers in estimating repair costs on trade-in units to determine

trade-in values.(6) To give dealers a fair way to analyze productivity of their own service

operations and technicians.

How Was the Guide Developed?Flat rates were derived by blending actual times spent by over 66 dealers through-out the country. The data was collected at the dealerships by interviewing service managers and lead technicians. The data was collected on major jobs not small jobs that could be readily sold as ‘’time and material” jobs. One thing that is important to remember is that the times stated in the Flat Rate Guide do not include appropriate diagnostic time which will be sold separately by the dealers as ‘’time’’ operations.

When Was It Last Updated?In 2001, the Ag Flat Rate Guide received a major update, adding 108 more tractor models, including Caterpillar. The update also included 18 more combine models. In 2005, the Ag Flat Rate Guide was updated, adding 65 tractor models and 10 combines.

How Do I Order?Contact the Northeast Equipment Dealers Association. The guide is available in two versions: a 3-ring binder or a CD. We feel the guide is an invaluable tool when dealers truly try to make their service shops a profit center of the dealership.

NortheastEquipmentDealersAssociationEstablished 1901

Committed to Building The Best BusinessEnvironment for Northeast Equipment Dealers

P.O.Box 3470Syracuse, NY 13220

1-800-932-0607 Fax 315-451-3548

ne-equip.com

2016 N

EDA AN

NUAL R

EGIONA

L MEET

INGS

TRUCKING COMPLIANCE SEMINARTRUCKING COMPLIANCE SEMINAR

Monday February 8best Western Premier eden resort & SuitesLancaster PA 17601 | P. 717- 569-6444

WedneSday February 10Holiday Inn Liverpool, NY 13088 | P. 315-457-1122

FrIday February 12Grappone Conference CenterConcord, NH 03301 | P. 603-225-0303

Featured Speaker

Wayne PeaSleySafety Consultant

J. J. Keller & Associates, Inc.®

With over 30 years of transportation safety experience, Wayne has extensive understanding of regulatory issues that comes from his work in both the public and private sectors. His real-world experience makes him uniquely qualified to provide industry and regulatory guidance.

Featured Speaker

RichaRd TReSTeRSafety Consultant

J. J. Keller & Associates, Inc.®

With over nine years experience working in education and training, Richard is a highly effective consultant specializing in DOT compliance, hazardous materials and bestpractices.

The Department of Transportation (DOT) requires Safety Training for every person who operates a commercial motor vehicle in interstate and intrastate commerce for all employer supervisors and others. As an employer of commercial drivers, you are required to enforce stringent requirements relating to safe operation of vehicles and employee safety and health.

do you understand The requirements??? Very few employers do, and IF there is an accident, you can be held accountable in a civil suit, as well as being subject to fines of $2,000.00 minimum per violation and up to $450,000.00 for multiple violations.

Northeast Equipment Dealers Association (NEDA) is offering this safety training for drivers and their employer supervisors to assist members to comply with these regulations.

8:00 - 8:30 am WelCoMe & InTroduCTIonS• AgendaandIndustryPolls• 10-MinuteTableExercise• Eachtableisassignedtoacategorytodiscussthetopchallengestheyexperience

• Findingswillberecorded(i.e.flipchartprovided)

8:30 - 9:30 am General revIeW on veHICle MarkInGS, reGISTraTIon, InSPeCTIon requIreMenTS, aCCIdenT reGISTer, MCS-150, eTC.• LatestNewsandRequirements• TopViolationsandComplianceSafetyAccountability(CSA)

Applicability• TableExercise–TopChallenges• BestPractices/What’sYourRisk

9:30 - 10:15 am drIver CoMPlIanCe: drIver qualIFICaTIon (dq) and CoMMerCIal drIver’S lICenSe (Cdl) overvIeW• LatestNewsandRequirements• TopViolationsandCSAApplicability• TableExercise–TopChallenges• BestPractices/What’sYourRisk

10:15–10:30am|break

doT SaFeTy CoMPlIanCe aGenda ServICe overvIeWbasing the 1-day training around the already experienced executive Forum content, the safety consultant will emphasize additional areas including transportation of large/small construction equipment, agricultural equipment, etc., including load securement and potential issues with over-dimensional and overweight vehicles. Topics include:

10:30 - 12:00 pm HourS oF ServICe (ParT 395)• LatestNewsandRequirements• TopViolationsandCSAApplicability• TableExercise–TopChallenges• BestPractices/What’sYourRisk

12:00 - 12:45 pm | lunCH break

12:45 - 1:30 pm druG & alCoHol TeSTInG (ParT 40)• LatestNewsandRequirements• TopViolationsandCSAApplicability• TableExercise–TopChallenges• BestPractices/What’sYourRisk

1:30 - 2:15 pm doT audITS (SIx FaCTorS)• LatestNewsandRequirements• TopViolationsandCSAApplicability• TableExercise–TopChallenges• BestPractices/What’sYourRisk

2:15 - 2:45 pm overWeIGHT/over dIMenSIonal PerMITS• TemporaryandAnnualPermits• EscortVehicles

2:45 - 3:00 pm queSTIonS/CloSe oF ProGraM



Space is Limited! Register ASAP to be assured a place in this Seminar!!

For More InForMaTIon or To reGISTer onlIne ClICk HereHTTPS://WWW.ne-equIP.orG/evenTS/#!evenT-lIST


Annual Regional Meeting

DOT TRUCKING COMPLIANCESEMINARreGISTraTIon ForM

DOT TRUCKING COMPLIANCESEMINAR

Select date / locationyou will be attending:q Monday February 8best Western Premier eden resort & Suites222EdenRoad|LancasterPA17601Phone: 717- 569-6444

q WedneSday February 10Holiday Inn 441ElectronicsParkwayLiverpool, NY 13088315-457-1122

q FrIday February 12Grappone Conference Center70 Constitution Avenue | Concord, NH 03301603-225-0303

Company ________________________________________________________________________

ContactPerson___________________________________E-Mail _____________________________

Address _________________________________________________________________________

City__________________________________________State_______________ Zip _____________

Phone ________________________________________ Fax _______________________________

Attendees Name Position

1. ____________________________________________________________________________

2. ____________________________________________________________________________

3. ____________________________________________________________________________

4. ____________________________________________________________________________

If registering more than 4 people, copy this form.

Registrationdealermembers:$79perperson

Registrationdealernon-members:$129perperson

If registered after January 22 or later, add $35 for late registration.

Space is limited!register aSaP

to be assured a place in this Seminar!!

2016 NEDA Annual / Regional Meetings

MEETING LOCATIONS:

Wednesday February 10, 2016 Holiday Inn 441 Electronics Parkway Liverpool, NY 13088 315-457-1122

Friday February 12, 2016 Grappone Conference Center 70 Constitution Avenue Concord, NH 03301 603-225-0303

Monday February 8, 2016 Best Western Premier Eden Resort & Suites 222 Eden Road Lancaster PA 17601 Phone: 717- 569-6444

PleaSe IndICaTe TyPe oF PayMenT:qBillmeqCheckEnclosedfor$_______________

q Please charge $_______________ to: q MCq Visa

Card#________________________________________Exp_________ ______

Name on Card___________________________________Security Code _________

Signature _______________________________________________________

reTurn CoMPleTed ForM To:

128 Metropolitan Park DriveLiverpool, NY 13088Fax to: 315-451-3548

Email to: [email protected]



All training materials are included in the cost of the seminar. each attendee will receive:HoursofServiceHandbook | CSAHandbook | TransportSafetyRiskManagement&

Security Newsletter | DOTCompliance&SafetyProgramManagement |

BuildaSmarterComplianceProgram | Encompass with E-Logs |

CSA–ACompanyAssessment | Presentationnotetakingpages |

Presenter’sBibliography | Folder


Creating and maintaining a superb shop appearance today is more important than it has ever been and particularly if you are interested in increasing your service sales and profitability. Many manufacturers and dealers recognize that a well laid out, clean and well maintained service shop will: 1) Increase shop efficiency, 2) Stimulate customers’ service sales, and, 3) Assist the dealership in maintaining and recruiting technicians. Maintaining a proper shop appearance is often a matter of regularly attending to small things. There is more to a suitable appearance than just sweeping the floors. There are a number of items that need to be maintained. Once they are in good shape it does not take much time or effort to keep them that way, and the responsibility can be spread to several shop personnel. Some tasks require only periodic checks but other areas need more frequent attention. A major point to consider when viewing your shop is to view it through the eyes of your customers! When “general clean-up” such as stall clean up after the job is finished, returning precision tools and making sure they are clean and in order should be the responsibility of the technician, we believe that in most situations it is better to “hire out” area clean up whenever possible. We are also a firm believer that area clean up time, tool cleaning and put away should be charged to the customer as part of the labor cost. In other words, stall clean-up and replacing tools should be done before the work order is closed and a new work order is opened. Today physical space, brick and mortar are some of the most expensive items to consider when searching an increase the actual size of the dealer’s shop area. This is one of the reasons we recommend to many of our clients the idea of double-shifting within the shop and/or initiating a resident technician program or field service program. Along this line, many farm, industrial, lift truck and outdoor power dealers have found a great deal of success with their scheduled in the field service programs, where they perform service for the customer right at the job site or at the customer’s home. There are some important factors to consider when you are laying out your shop, whether you are building, adding on or even rearranging for greater efficiency. Every service shop is different, and the best layout for each shop will naturally vary. The following ideas are not intended to fit every shop exactly, but are to be used as a guide in establishing the best possible layout for your dealership’s service department. You might also contact your suppliers and service travelers for plans and/or ideas. In designing or rearranging any shop, the designer should definitely provide for good traffic flow throughout the shop. Make it easy to move units around and in and out of the shop. 1) All entrance and exits need to be clearly marked. 2) Consider doorway height and width, with the expectation that the size of the equipment you service will grow. 3) Stall areas should be clearly defined and this will keep order as well as provide an

orderly appearance to your shop. 4) Stalls should be arranged so they can be reached from aisles and/or doors easily. 5) Aisles should be large enough for easy access. Stall Size: is certainly going to vary according to the type of equipment the dealership is selling. Today’s marketing trend toward larger pieces of equipment will dictate stall size when laying out space requirements within your shop. Certainly an outdoor power equipment dealer’s requirements will be distinctly different from the needs of a dealer selling large combines or 40,000 pound lift trucks. Each equipment dealer’s requirements should be based on the space needed for servicing the size equipment they sell. An additional three to five feet clearance should be included on all sides of the equipment to permit working space. The clearance is between units so the clear space on one stall overlaps the stalls on either side. Stalls that are next to walls, benches or stationary equipment need an extra one to two feet for adequate clearance. Where volume of service work justifies specialized areas, attempt to fit the size of the stall to the work being done. Location of Shop Functions: is something which each dealership must give a great deal of consideration. We recommend doing a thorough check of OSHA and EPA regulations before establishing or locating any particular special work area within your shop. Some consideration should be given to the location of the various shop functions with regard to noise, dirt and objectionable orders. Adding Doors: Direct drive-in stalls, as found in the older gas service stations eliminates the need for an indoor aisle, and provides easy entrance and exit from the individual stalls. In developing an efficient shop layout, whether you are rebuilding, modernizing or simply updating and improving your present shop, planning is paramount to success. Remember, the most important aspect of an efficient shop is the manner in which it is laid out. Shop layout affects the ability to provide and deliver service when the customer needs it. In addition, good shop layout creates a business like appearance. If equipment is parked in a hap-hazard manner and it is necessary to move several units to get to another, it creates confusion, and may lead the customer to think no one knows what they are doing. There are some specific features required when developing an efficient shop layout. Each one of these features needs to be considered when drawing up your plans for rebuilding and/or remodeling. May we strongly request that in your overall planning you may want to call in an expert for laying out your requirements and particular needs. provide for good traffic flow: make it easy to move units around and in and out of your shop. Entrances and exits should be clearly marked. You should have large enough doorways to accept the equipment you are selling and also anticipate the size of equipment you will be selling in the future. Stalls should

continued on page 15

SETTING YOUR SHOP UP FOR MARKETING & EFFIcIENcy?

thE AFtER mARKEt sAlEs FoRCE

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ANSWERS TO FIvE OF yOUR qUESTIONS ABOUT THE pREMIUM TAx cREDIT (HEALTHcARE/AcA) ... IRS

4. Marketplace says I did not file, but I did file before the extended due date. What should I do?

In advance of the open enrollment period that runs through January 31, 2016, the Marketplace sent Marketplace Open Enrollment and Annual Redetermination letters to individuals who might not have filed a tax return. Follow the instructions in the letter you received.

•LogintoyourMarketplaceaccounttoupdateyour 2016 Marketplace application.

•ChecktheboxtellingtheMarketplaceyourec-onciled your premium tax credits by filing a 2014 tax return and Form 8962.

•Update your Marketplace application by December 15, 2015.

•If you don't update your Marketplace appli-cation, any help with costs you currently get will stop on December 31, 2015 and you'll be responsible for the full upfront costs of your Marketplace plan and covered services.

•FormorehelpvisitHealthCare.govorcallyourMarketplace.

5. What are my options to receive help with filing a return and reconciling?

Filing electronically is the easiest way to file a complete and accurate tax return as the software guides you through the filing process. Electronic filing options include free Volunteer Assistance, IRS Free File, commercial software, and professional assistance. For information about filing a return and reconciling advance credit payments, visit IRS.gov/aca.

The premium tax credit is a refundable credit that helps eligible individuals and families with low or moderate income afford health insurance pur-chased through a Health Insurance Marketplace. To get this credit, you must meet certain eligibility re-quirements and file a tax return. Here are five questions the IRS is hearing from taxpayers, along with answers and where to go for more information.

1. What is included in household income? For purposes of the PTC, household income is the modified adjusted gross income of you and your spouse if filing a joint return, plus the modified AGI of each individual in your tax family whom you claim as a dependent and who is required to file a tax return because their income meets the income tax return filing threshold. Household income does not include the modified AGI of those individuals you claim as dependents and who are filing a return only to claim a refund of withheld income tax or estimated tax. For this and other detailed premium tax credit questions and answers visit IRS.gov/aca.

2. The IRS is asking to see my 1095-A. What should I do?

You should follow the instructions on the cor-respondence that you received from the IRS. You may be asked for a copy of Form 1095-A in order to verify information that has been entered on your tax return. Visit our Health Insurance Marketplace Statements webpage for more information about Form 1095-A and how to obtain a copy,

3. If I got advance payments of the pTc, do I have to file even if I never had a filing requirement before?

Yes. If you received the benefit of advance payments of the pre-mium tax credit, you must file a tax return to reconcile the amount of advance credit payments made on your behalf with the amount of your actual premium tax credit. You must file a return and submit a Form 8962 for this purpose even if you are otherwise not required to file a return.


hEAlth iNsURANCE ... AFFoRDABlE CARE ACt ... mEDiCAl

Some of the tax provisions of the Affordable Care Act apply only to employers with fewer than 50 full-time or full-time equivalent employees.

Employers with fewer than 50 employees should take note of these tax considerations:• More than 95 percent of employers have fewer than 50 full-time employees or equiva-

lents and are not subject to the employer shared responsibility provision.• Calculating the number of employees is especially important for employers that

have close to 50 employees or whose workforce fluctuates throughout the year.• If an employer has 50 or fewer employees, it can purchase health insurance

coverage for its employees through the Small Business Health Options Program.• Employers that have fewer than 25 full-time equivalent employees with

average annual wages of less than $50,000 may be eligible for the small business health care tax credit. These employers are eligible for this credit

if they cover at least 50 percent of their full-time employees’ premium costs, and the coverage is purchased through the SHOP.

All employers, regardless of size, that provide self-insured health cov-erage must annually file information returns for individuals they cover. The

first returns are due to be filed in 2016 for the year 2015. The cost of these health care benefits will be reported in box 12 of the

Form W-2, with Code DD to identify the amount. In general, the amount reported should include both the portion paid by the employer and the portion paid by the

employee. In the case of a health FSA, the amount reported should not include the amount of any salary reduction contributions.

For more information, see the Affordable Care Act Tax Provisions for Small Employers page on IRS.gov/aca.

be clearly defined and sometimes lines painted on the floor will help keep order as well as provide an orderly shop appearance. Stalls should be large enough to allow space for the size of the units to be serviced. Stalls should be arranged so that they can be reached from the aisles and/or doors easily. Aisles need to be large enough for easy access to the stalls. Ideally you should try to establish aisles so you can have one-way traffic, and help eliminate confusion. We are going to recommend the absolute necessity of having a Service Manager’s office and this office should be located near the shop area of the dealership. A professional service manager needs to spend a minimum of an hour and a half a day or 420 hours a year in some form of planning, executing, and evaluating which makes a service department office mandatory. A tool room for special tools needs to be set up with policies for dispatch and

return of all company owned tools. This policy needs enforcement to eliminate continued hunting for special tools. Along this same line look for efficient methods to pick up and handle the Service Department’s parts requirements. We see in many of the larger shops a position within the parts department whereby the parts are delivered and/or carried to the technician’s stall. Lighting in any service shop is important. Proper lighting improves both shop safety and shop efficiency. Free advice in this area is available from your local power and light company. They are the experts so involve them in making lighting decisions. In your overall layout planning, consider the location of “Built-In” Equipment and Utilities such as: Hoists, Electrical Outlets (110 & 220), Air Compressors, Steam or Pressure Cleaners, Hot & Cold Water, Natural Gas, Exhaust Vents, Heating or Cooling Ducts,

Fire prevention Equipment and Safety Equipment and Facilities. As we have pointed out to equipment dealers so many times: perception is everything, your service shop is most certainly an area of opportunity for any equipment dealer. Show a customer and particularly a prospective customer a filthy dirty, poorly lit shop and you’ll have a customer who questions your efficiency and ability to take care of his equipment after the sale. Show me a professional service technician who is considering the possibility of changing jobs and coming to work for your dealership this same out-dated, poorly lighted, hot in the summertime and cold in the winter shop and we’ll show you a technician who will continue to look. Do not short change yourself, your dealership, your employees, and your customers by denying your service department an efficient and orderly run service shop.

MARKETING & EFFIcIENcy? continued from page 12


By BART BASI

WINDING DOWN 2015

It’s been a good year. The majority of reports indicate that most industries and practices have done well. Many don’t want to think about it, but it is that time of year again! Tax-time is just around the corner. The actions you take in the final month of 2015 will have a big effect on your taxes. This advisory outlines some key strategies to be implemented prior to the end of the year to effectively limit your tax liability.

DEFERRiNg iNComE As with most other tax years, the more taxable income your company earns in 2015, the more taxes you and your company will pay. There-fore, it is logical to defer any ordinary income you can until next year. This is especially true if you or your business will be in a lower tax bracket this year as a result of your tax planning. For business tax planning, send out monthly billing later in the month of December. On average, accounts receivable turnover is 26 days. Your turnover may be more or less based upon your own expe-rience. Any payments received after January 1, 2016 are credited and recognized as income in 2016. How-ever, this is provided your business is on the cash method of accounting and not the accrual method, thus reducing your overall revenue for 2016. For individuals, if you are to receive a bonus, defer it until next year. (BE CAREFUl – if you have a retirement plan that is based on a percentage of your gross pay for the year, you do not want to reduce your retirement con-tribution because of your deferred bonus.) Finally, you may decide to defer income using more traditional means, by participating in a deferred compen-sation plan, buying tax deferred treasury securities, or some specific certificates of deposit that allow for deferral of interest income.

ACCElERAtiNg DEDUCtioNs Paying bills is never fun, but doing so brings a sense of relief and now is the best time to pay them. Even if you waited to pay a given bill until December 31, you can still deduct the payment in 2015. For business tax planning, buy supplies in Decem-ber and stock up. In addition, the IRS will allow you to

deduct the expense in 2015 if you have charged the item and not yet paid for it as long as you are on the accrual method of reporting. For example, use your company credit card to purchase supplies for January, deduct the expense now, and pay the bill in January of 2016. individuals, remember to recognize any capital losses that you may have before year end. You are allowed

to offset capital gains each year with any losses you incurred; and if the loss isn’t fully utilized this year, it can be carried forward to offset future gains to the extent of $3,000 per year. Pay your investment expenses early, including any mortgage inter-est, real estate taxes, and any state and local taxes.

thE pRoBlEm oF thE missiNg ExtENDERs Once again, we’re late in the year and we are still without our extend-ers or new tax law. Of most impor-tance is Section 179, advanced de-preciation. In 2014, the maximum Section 179 deduction was $500,000. This is only because on December 16, 2014, Congress passed H.R. 5771, The Tax Increase Prevention Act of

2014. Within it, Section 179 was once again enhanced to $500,000, but was only for 2014. Additionally, on January 1, 2015, bonus depreciation largely vanished once again. The House has passed an extenders bill earlier this year; however, the Senate has pledged to deal with the issue later in the year. We will keep you updated on the status.

CoNClUsioN By utilizing these year-end tax strategies, you can reduce your tax liability for the year. Lowering taxable income by deferring income, accelerating deductions, and utilizing tax credits results in lower tax liability. These methods work not only this year, but also year-to year. The Center routinely examines tax situations and engages in tax planning, business succession, valuations and estate planning. If you have any questions about any subject matter herein, Business Valuations, Business Succession Planning or would like additional informa-tion, please contact the professionals at The Center at (618) 997-3436.

As with most other tax years, the more taxable income your company

earns in 2015, the more taxes you and yourcompany will pay.

Therefore, it is logical to defer any ordinary

income you can until next year.


MOST OF THE U.S. RENTED FARMLAND IS

oWNED BY NoN-FARmERs Agricultural producers rented and farmed 353.8 mil-lion acres of farmland, according to the results of the 2014 Tenure, Ownership, and Transition of Agricultural Land (TOTAL) survey results released by the U.S. Depart-ment of Agriculture’s National Agricultural Statistics Service (NASS). Of these acres, 80 percent are owned by non-farming landlords. According to the survey results, rented farmland acres, combined with buildings on this land, are valued at more than $1.1 trillion. Approximately 2.1 million landlords with various ownership arrangements. In 2014, all of the landlords combined received $31.2 bil-lion in rental income while incurring $9.2 billion in total expenses. A tenth of the 911 million U.S. farmland acres out-side of Alaska and Hawaii, or about 91.5 million acres, is slated for ownership transfer in the next five years, not including farmland that is in or is expected to be put into wills. Landlords expect to keep or put nearly 48 percent of these acres in trusts. Only 21 million acres of land are expected to be sold to a non-relative, while 26 million acres are expected to be sold to a relative or given as a gift. This means that only a small percentage of farmland will be available for new entrants into the farming sector. Farmland has always been a valu-able resource, but what we see in the most recent results is the emergence of farmland as a future investment. More families are creating trust own-erships to make sure land remains in their family for farming or as an investment. In addition to looking at farm-land, TOTAL also provides a glimpse into demographic information for 1.4 million non-farming individu-als and principals in partnerships ar-rangements, also known as principal landlords. According to the findings, the average age of these landlords is 66.5 years old. This age exceeds that of the average farmer, who is 58.3 years old, according to the most recent Census of Agriculture. Only 18 percent of all principal landlords were under 55

years old. Nearly 45 percent of all of the principal land-lords have never farmed. USDA’s Economic Research Service (ERS), surveyed farmland ownership in 48 contiguous states. It is the only NASS survey that collects agricultural landlord data. The survey is expected to greatly contribute to research and policy analysis. Farmland ownership and decisions stemming from ownership arrangements are key issues for which ERS serves as a primary source of information. Access to land is one of the biggest challenges fac-ing agricultural producers, particularly beginning farm-ers. TOTAL gives US a chance to demonstrate the extent of the land access issue and provide realistic projections of future land availability for purchase or for rent. To access the complete 2014 TOTAL results, in addition to key data highlights, methodology, and Frequently Asked Questions, visit http://www.agcensus.usda.gov/Publications/TOTAL/.

~ SourceUnited States Department of Agriculture

& Far West Dealers Association

TRAINYOUR

TRAINERForklift

OperatorSafety

Training&

Certification Courses

required every three years

If you do not have a certified trainerat your dealership or have mistakenly

let your certifications lapse ...

NEDA cAN hElp!

If you do not have a certified trainerat your dealership or have mistakenly

let your certifications lapse ...

NEDA cAN hElp!

NEDA staff provides one forklift safety training

& certification course at your dealership

for all staff personnel authorized to operate

your forklift(s)[must be over 18 years of age or older]

$400.00Plus Expenses for on-site training

Training Materials IncludedPrices Subject to Change

If you would like to schedule acErtIfIcAtIoN/

rEcErtIfIcAtIoNCall Kelli or Dave

at the Association, 800-932-0607

18 …”Committed to Building the Best Business Environment for the Northeast Equipment Dealer”18 …”Committed to Building the Best Business Environment for the Northeast Equipment Dealer”

TAX TIPS The Internal Revenue Service issued the 2016 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on Jan. 1, 2016, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 54centspermileforbusinessmilesdriven,downfrom57.5 cents for 2015

• 19centspermiledriven formedicalormovingpur-poses, down from 23 cents for 2015

• 14centspermiledriveninserviceofcharitableorga-nizations

The business mileage rate decreased 3.5 cents per mile and the medical and moving expense rates decrease 4 cents per mile from the 2015 rates. The charitable rate is based on statute. The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.

2016 Standard Mileage Rates for Business, Medical and Moving Announced


Taxpayers always have the option of calculating the ac-tual costs of using their vehicle rather than using the stan-dard mileage rates. A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously. These and other requirements for a taxpayer to use a standard mileage rate to calculate the amount of a deduct-ible business, moving, medical or charitable expense are in Rev. Proc. 2010-51. Notice 2016-01 contains the standard mileage rates, the amount a taxpayer must use in calculat-ing reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.

~ IRS

Eating more fruits and vegetables is a safe and healthy way About 20 million Americans suffer from thyroid disease and approximately 13 million more are currently undiagnosed today.

About the Thyroid The thyroid gland is a small, butterfly-shaped gland located at the base of the neck, just below the Adam’s apple and right above the collarbone, surrounding the windpipe. The thyroid helps control the function of many of the body’s organs, including the heart, brain, liver, kidneys and skin, but mostly helps to set the metabolism. The two types of thyroid disease are hyperthyroidism and hypothyroidism.

Hyperthyroidism This disease refers to an overactive thyroid gland, which produces too much thyroid hormone. Symptoms include: goiters, enlarged thyroid, rapid heart rate,

nervous, anxious or irritable behavior, trembling hands, unexplained weight loss, heat intolerance, increased sweating, hair loss, diarrhea, sleeplessness and decreased menstrual flow or impaired fertility

Hypothyroidism This is when the thyroid gland produces less than the normal amount of thyroid hormone, resulting in the decrease of many bodily functions. When the metabolism slows due to hypothyroidism, the following may occur: fatigue, unexplained weight gain, dry skin and hair, difficulty concentrating, increased cholesterol, intolerance to cold, constipation and a heavier menstrual flow.

Risk Factors Risk factors for thyroid disease include:

•Beingfemale–Womenarefivetoeight times more likely to suffer

from a thyroid disorder than men are.

•Age – The Thyroid Foundation ofAmerica recommends that women get annual thyroid hormone level tests yearly starting at age 50; men should as well beginning at age 60.

•A family history – If the diseaseruns in the family, testing every five years after age 35 is recommended.

•Pregnancy–Thyroidconditionscanarise after giving birth.

Treatment Treatment for hyperthyroidism usually includes prescription drugs, radioactive iodine therapy and/or surgery. Hypothyroidism tends to be treated most effectively with a prescription thyroid replacement hormone.

~Submitted by Darwin Allen Haylor, Freyer & Coon, Inc.

800-289-1503

THYROID HEALTH


TAX TIPS The premium tax credit can help make purchas-ing health insurance coverage more affordable for people with moderate incomes. Answer these yes-or-no to find out if you may be eligible for the pre-mium tax credit. For the graphic version of these questions and answers, see our Premium Tax Credit flow chart.

Question 1: Did you or a family member enroll in insurance through the marketplace? If you answer no to question 1, you are not eli-gible for PTC. If you answer yes to question 1, move on to the next question.

Question 2: Are you and every member of your family eligible for coverage through an employer or government plan? If you answer yes to question 2, you are not eli-gible for PTC. If you answer no to question 2, move on to the next question. Footnote about question 2: there are spe-cial rules about what it means to be eligible for employer or government coverage. See Publication 974 for more information.

Question 3: is your household income at least 100 percent, but no more than 400 percent, of the federal poverty line for your family size? If you answer no to question 3, you are not eli-gible for PTC. If you answer yes to question 3, move on to the next question. Footnote about question 3: Under special circumstances, you may be able to claim the PTC even though your income is below 100 percent of the federal poverty line. See the instructions for Form 8962 for more information.

premium Tax credit: Are you Eligible?Question 4: Can you be claimed as a dependent on someone else’s tax return? If you answer yes to question 4, you are not eli-gible for PTC. If you answer no to question 4, move on to the next question.

Question 5: is your filing status married Filing separately? If you answer yes to question 5, you are not eli-gible for PTC. If you answer no to question 5, move on to the next question. Footnote about question 5: There are exceptions to the married filing separately rule. Certain vic-tims of domestic abuse and spousal abandonment can claim the premium tax credit using the married filing separately filing status. See the instructions for Form 8962 for more information.

Question 6: Were all the premiums paid? If you answer no to question 6, you are not eligible for PTC. If you answer yes to question 6, you may be allowed a premium tax credit. See Form 8962, Premium Tax Credit, and the Form 8962 instruc-tions for more information. Here are links to information and resources referenced in the article:

•Form8962,PremiumTaxCredit(PTC)•InstructionsforForm8962•Information about the federal poverty line (FPL)•Publication974,PremiumTaxCredit(PTC)•InteractiveTaxAssistant:AmIEligibletoClaim

the Premium Tax Credit


On December 10, 2015, FMCSA announced its final rule requiring the adoption and use of electronic logging devices (ELDs) by all drivers currently required to complete paper records of duty status (logs). In the July 2012 highway reauthorization law known as MAP-21, Congress required that FMCSA mandate the use of ELDs. The following is a summary of the final rule’s main points. DEvIcE ADOpTION DEADLINE DATE: The rule requires fleets and drivers required to complete paper logs to adopt and use compliant ELDs by December 2017, unless they are currently using automatic on-board recording devices that are grandfathered (see below). GRANDFATHERING OF ExISTING EqUIpMENT: FMCSA will allow fleets and drivers using “ELD-like” devices meeting the current standards for Automatic On-Board Recording Devices (see 49 CFR 395.15) to continue to use such devices until December 2019, two years after the final deadline for adoption of ELDs. If these devices can be modified to meet the ELD specifications (e.g., with a software upgrade) they may continue to be used after December 2019. LIMITED ExcEpTIONS: The final rule allows limited exceptions to the ELD mandate, including:

•Driverswhousepaperlogsfornotmorethan8daysduringany 30 day period;

•Driverswhoconductdriveaway-towawayoperations,wherethe vehicle is the product being delivered;

•Driversofvehiclesmanufacturedbeforemodelyear2000(due to vehicle connectivity concerns; this is a change from the proposed rule);

•Driverswhooperateusingthelogbooktimecardexception(i.e. short-haul 100-air mile drivers)

SHORT HAUL DRIvERS: Drivers who are not required to complete logs because they meet one of the short haul exemptions in section 395.1 (e) of the Federal Motor Carrier Safety Regulations are not required to use ELDs. FMCSA recognizes that these drivers occasionally don’t meet the conditions of these exemptions. In those instances, drivers are required to keep a paper log. Drivers who find themselves in these circumstances more than 8 days in any 30-day period are required to use ELDs. LOcATION MONITORING: ELDs are required to record vehicle location at every change of duty status and at a minimum of 60-minute intervals. To ensure against harassment and protect driver privacy, the devices will record location during on-duty time at a precision of approximately one mile, and during off-duty time of within ten miles (i.e., will not record exact location but generally where the vehicle is located when used for personal conveyance). Note: Fleets may employ devices that record location more precisely; FMCSA has imposed the one and ten-mile precision limits on information that is reported to enforcement officials when electronic logs are being verified.

SUppORTING DOcUMENTS: Because ELDs effectively negate the need for supporting documents to verify driving time, FMCSA has implemented new document retention requirements to verify on-duty, not driving time. The final rule requires fleets to retain up to eight supporting documents from several categories (see below) per driver for each 24-hour period:

•Billsoflading,itineraries,schedulesorequivalentdocumentsindicating the origin and destination of a trip;

•Dispatchrecords,triprecords,orequivalentdocuments;•Expensereceiptsrelatedtoon-dutynotdrivingtime;•Textmessages,emailmessages,instantmessages,orother

electronic mobile communications transmitted through a fleet management system;

• Payroll records, settlement sheets, or other documentsreflecting driver payments.

In order to qualify as a supporting document, a document must contain the following content: driver identification, date, vehicle location, and time. If the motor carrier has more than eight documents containing these data elements, they must retain the supporting documents nearest the beginning and the end of the driver’s shift. Drivers are required to submit such documents within 13 days of receipt and produce those in their possession to law enforcement upon request. Fleets are required to maintain them in a manner which would facilitate their being easily matched to the logs. DATA TRANSFER: ELDs must be able to transfer data electronically via either a) a “telematics” approach capable of wireless Web service; or B) a “local” method capable of Bluetooth and USB 2.0 transfer. In all circumstances, drivers must be able to show a roadside inspection officer a graph-grid of his/her hours of service compliance, either on the ELD’s display or on a hardcopy paper printout. cERTIFIcATION: Manufacturers are required to test and certify to FMCSA that their devices meet the new standards. FMCSA will create a public (i.e. Internet) registry of compliant devices and conduct tests to verify manufacturers’ claims. HARASSMENT: The final rule includes several provisions to guard against harassment of drivers. Specifically, the rule prohibits motor carriers from using information from ELDs to pressure drivers into violating regulations. The final rule also requires ELDs to either automatically mute or allow a driver to turn off or mute the volume on the ELD (or the fleet management system with integrated ELD functionality) when they have logged into the sleeper berth status in the ELD. FMCSA also places restrictions on location precision (see above) and establishes a process for drivers to file harassment complaints related to ELDs. ELD MALFUNcTIONS: In the event that an ELD malfunctions, the driver is required to immediately begin completing a paper log and to reconstruct logs for each of the past 7 days, unless the

continued on page 23

Summary ofFMcSA’S FINAL RULE

To Mandate Electronic Logging Devices

FMCSA

Your Association is involved in State Legislation Sessions, identifying and tracking all bills affecting equipment dealers and or/are relative to our industry. Legislative reports are shared with members.

NEDA works with EDA and other affiliate associations across North America to work with equipment manu-facturers, distributors, and other suppliers to address new Manufacturer Dealer Agreements including other industry topics to help resolve dealer issues.

NEDA members receive special pricing on trade-in guides for agricultural, construction, outdoor power equipment and power sports as well as Flat Rate Time Guide for Agricultural Tractors and Combines and the Outdoor Power Equipment Flat Rate Time Guide.

Your Association’s recommended providers offer the best business insurance and OSHA consulting pro-grams.

Your Association maintains relationships with various attorneys and consultants to help members address employment, labor law issues, dealer contract issues, customer relations, OSHA compliance, workplace safety issues, environmental issues, etc.

Annual Cost of Doing Business Survey along with the Wages and Benefit Survey provide data which allow dealers to compare their dealership operating results with averages of other Northeast Dealerships includ-ing all dealerships in North America.

We represent Equipment dealers’ interest in the North-east Equipment Industry concerning Government Relations. Keeping you informed of issues affecting you is our primary responsibility.

NEDA along with National Equipment Register (NER) provides stolen equipment alerts that go out across North America to law enforcement and other equipment dealers.

Legislative Representation

Dealer-Manufacturer Relations

Trade-In and Flat Rate Guides

Business Insurance and OSHA Compliance Services

NEDA, in partnership with Haylor, Freyer & Coon Health Group, provides equipment dealers and their employees with comprehensive, quality and afford-able Health, Disability and Dental Insurance coverage you can trust.

Health Insurance

Legal Counsel Hotline

Cost of Doing Business, Wages Survey

Government Relations & Compliance

NEDA staff provides ONE (1) forklift safety training & certification course at your dealership for all staff per-sonnel operating your forklift(s). Eligible staff must be 18 years of age or older with valid driver’s license for certification.

Forklift Training – Train the Trainer

Stolen Equipment – Call us Immediately!

NEDA’s website is a “hub” for dealer members and provides instant access to online dealer information and a database with a wealth of information. You can also use our 1-800-932-0607 hotline to call for immedi-ate assistance.

NEDA Hotline/Website

Annual regional meetings are conducted in various locations convenient to your dealership each year to interact with dealer principals and employees con-cerning various operational and marketing strategies relevant to your business.

Annual Regional Meetings

NEDA IS DESIGNED TO MEET YOUR BUSINESS NEEDS



Let us prove that membership doesn’t cost . . . it pays!

Your link to the power equipment industry isNeDA!!!

What’s in it for me?PLENTY!!!

128 Metropolitan Park Drive | Liverpool, NY 13088 | phone 800.932.0607 | www.ne-equip.com

www.ne-equip.com

NEDA offers you forms and supplies specific to equip-ment dealers. Count on a wide selection, competitive pricing and great service! Please call us.

Business Forms and Supplies

Regulations continue to be a large burden like OSHA, Trucking,Health Mandates, Data Security/Privacy, Retail Financing, etc.

NEDA is here to help take the mystery of these burdens away from you,so you can continue to run your daily business operations.


By LANcE FORMWALT, SEIGFRIED BINGHAM, p.c.

Lawyers are always full of advice about how you should do this or that to protect you and your business. Inevitably, that advice seems to require 5 pages of small print in a contract. While your lawyer may have very good reasons for all the wording, you are thinking “how am I going to get my customer to sign this when all he wants to do is get a simple repair completed?” Recently I wrote about the importance of adopting contract terms to limit potentially very significant liabilities in connection with the services you offer. To accomplish this effectively (from a legal standpoint), quite a few words are needed. But I also realize that the chances of you actually using this “legalese” are slim to none unless it can be accomplished without putting a strain on the relationship between your employees and your customers. The good news is that we can look to the way you conduct business with e-commerce companies for examples of how to efficiently gain customer acceptance of your contract terms without creating headaches in your customer relationships. How many times in the past year have you or your spouse ordered something from a website? When you placed the order, I’d bet a lot of money that you (a) had to check a box that said something to the effect of “I agree to the terms and conditions” and (b) didn’t bother to click on the link and read the terms and conditions. How much did we bet again?

Understanding the legal Concepts E-commerce companies rely on two legal concepts to make these

terms and conditions enforceable. Each of these concepts is also available to you for use in your dealership. The first concept is “e-contracting”. It allows your customers to enter into contracts without manually signing the contract. Simply checking a box is usually enough to make a contract enforceable. The second concept is “incorporation”. This allows you to say in your contract that other “terms and conditions” apply even though the actual terms and conditions don’t appear in the contract your customer is signing. As a result, you can effectively take a 5-page agreement and reduce it to a paragraph, making both you and your lawyer happy!

What’s the Catch? As with all things that seem too good to be true, there are some “catches” involved. A list of some of these “catches” appears below, but because this is an evolving area of the law, it will be important for you to consult with legal counsel to make sure you are applying these concepts in a way that will be enforceable.

• Certain states may limit thetypes of transactions covered by e-contracting. For example, e-contracting may be limited for certain types of consumer transactions (transactions with individuals for non-business purposes).

• If your customers sign agreements electronically, you should document your customer’s agreement to conduct business electronically. Although the safest bet is to obtain this agreement with a manual signature, proof can

also be established by e-mail or other electronic means.

•Tyingyourcustomer’selectronicsignature to the contract terms is important. One example of an appropriate method is allowing acceptance of terms through a password-secured account that can be traced back to an e-mail address your customer provided.

• Terms that you want toincorporate into your basic contract or invoice must be easily accessible to your customer before they sign the contract. This can be accomplished through a link or the web address where the document can be found on your website.

•Keytopicsincludedinthetermsto be incorporated should be briefly referenced in the contract or invoice that the customer signs to alert the customer to the types of terms included. Examples of these types of terms include warranty disclaimers, limitations on liability and arb i t rat ion clauses.

The planning involved to use these methods of contracting with your customers will take a little work on the front end. But if done right, the end result should involve very little disruption in your customer relationships with a big upside to your business by capping your exposure in individual customer transactions.

Protecting Profits Through Contract Terms IMpLEMENTING IMpORTANT DEALER pROTEcTIONS WITHOUT cREATING A NEGATIvE cUSTOMER ExpERIENcE


driver already possesses the records or the records are retrievable from the ELD. ELDs must be repaired within 8 days, subject to an FMCSA-approved extension. pERSONAL cONvEyANcE AND yARD MOvES: Authorized use of a commercial motor vehicle (CMV) for personal conveyance will not be recorded as on-duty driving, but rather off-duty time. Similarly, authorized use of a CMV in a closed facility with restricted access (e.g., a yard) will be recorded as on-duty not driving time. DRIvER EDITS: Drivers will be able to make edits and

On November 30, 2015, FMCSA published a final rule to prohibit motor carriers (including private carriers), shippers, receivers, or transportation intermediaries from coercing commercial motor vehicle (CMV) drivers to operate their CMVs in violation of many of the Federal Motor Carrier SafetyRegulations (FMCSRs). The rule also prohibits anyone operating a CMV in interstate commerce from coercing a driver to violate the commercial regulations. The rule is authorized by section 32911 of MAP-21, and becomes effective on January 29, 2016. Jurisdiction over shippers, receivers, and transportation intermediaries: The rule establishes FMCSA jurisdiction over shippers, receivers, and transportation intermediaries to the extent necessary to enforce the prohibition on coercion. DEFiNitioN oF “CoERCioN”: FMCSA defines “coercion” as “[a] threat by a motor carrier, shipper, receiver, or transportation intermediary . . . to withhold business, employment or work opportunities from, or to take or permit any adverse employment action against, a driver in order to induce the driver to operate a commercial motor vehicle under conditions which the driver stated would require him or her to violate one or more of the [applicable FMCSA] regulations, which the driver identified at least generally … or the actual withholding of business, employment, or work opportunities or the actual taking of any adverse employment action to punish a driver for having refused to engage in such operation.” AppliCABlE REgUlAtioNs: For motor carriers, shippers, receivers, and transportation intermediaries, the prohibition on coercion applies to requiring driver

annotations to their electronic logs, however the edits will not overwrite or erase the original record, which will be retained. Employers will be able to request edits or annotations, but those must be approved by the driver. INTEROpERABILITy OF DEvIcES AND SySTEMS: All ELDs must be capable of exporting data in a standard file format to facilitate importing by other systems. However, devices and systems are not required to be capable of importing these records.

~ ATA

violations of 49 C.F.R. parts 171-173, 177-80, 380-383, or 390-399, or §§ 385.415 or 385.421. For motor carriers, the prohibition on coercion also applies torequiring driver violations of 49 C.F.R. parts 356, 360, or 365-379. pENAltiEs: Violations of the rule could result in civil penalties specified in 49 U.S.C. § 521(b)(2)(A). Asadjusted for inflation per the Debt Collection Improvement Act, the civil penalty per offense would be an amount not to exceed $16,000. Additionally, for willful violations FMCSA has authority to suspend,amend, or revoke the operating authority of for-hire motor carriers, brokers, or freight forwarders. oVERlAp With WhistlEBloWER pRoVisioNs oF stAA: OSHA oversees the whistleblower provisions of the Surface Transportation Assistance Act (STAA). Those provisions prohibit adverse employment actions in response to a driver’s refusal to operate a vehicle that violates CMV safety or health standards or because the driver has a “reasonable apprehension of serious injury to himself or herself or the public as a result of the vehicle’s unsafe condition.” Depending on the alleged action taken, a carrier may be subject to enforcement under the FMCSA’s new rule and by OSHA. ComplAiNt pRoCEDUREs: The rule sets forth procedures to submit evidence of coercion. Drivers must file written complaints to FMCSA within 90 days of the alleged coercive event. The rule notes that FMCSA ultimately bears the burden of proof of coercion, but that a practical matter, the driver “is typically the only person in a position to provide the critical evidence needed” to meet that burden.

~ NYMTA

FMcSA’S Final Rule continued from page 20

SUMMARy OF FMcSA’S FINAL RULETO pROHIBIT cOERcION OF cOMMERcIAL

MOTOR vEHIcLE DRIvERS

FMCSA


By JOHN cHApIN

SALES, LIkE AMERICA, IS RIGGED IN FAVOR OF THE

HARD WORKERS AND SELF-DIScIpLINED Lately I’ve heard several politicians saying that America is rigged so that only the rich can win. They’re dead wrong. America is still rigged for the people who are willing to roll up their sleeves, work extremely hard, and sacrifice short-term pleasure today for long-term gain tomorrow. It’s rigged for those willing to stick a hand out to help others versus those looking for a handout. In the largest economy ever cre-ated on the planet, America is still the land of opportunity. And life will still pay whatever price you ask, but it’s not just going to hand you the prize without you earning it, with-out you deserving it. Yes, America is still a do-it-to-yourself and for-you proposition. Sales mirrors America in this way. If you’re willing to work hard, stays disciplined, and do what needs to be done every day, whether you feel like it or not, you can be extremely successful in sales.

thREE sAlEs sUCCEss RUlEs to REmEmBER

Rule #1: You can’t shortcut your way to success. I recently saw a quote someone created on social media that read, “You say you work 40 hours a week? Yes, I remem-ber my first part-time job too.” If you’re looking for a 9 to 5 job or an easy way to make money, don’t get into sales. Sales is the lowest paying easy work and the highest paying hard work, and to be successful, you simply have to put in the hours. There is no magic bullet or secret that will make you a superstar overnight. While you want to work smart in ad-dition to hard, in the beginning, when you are just figuring things out, hard work and long hours are required. Especially when you are just starting out in sales, or if you are struggling, you’re objective is to be the hardest working salesperson in the organization. When I was failing miserably early in my career, what kept me around was the fact that I was the first one in the office, the last one out, and when they pulled the Tels Report, which kept track of phone calls, I was always number one on the list. Whenever I have a new salesperson struggling, I look for two things: attitude and ac-tivity. Are they persistent? Are they still getting out there and swinging away with their chin up? Are they coachable and continuing to learn from their mistakes? Finally, are they go-ing above and beyond in terms of effort? Are they outwork-ing everyone else to learn the business and make the calls?

Rule #2: You can’t cheap your way to success. To be successful in sales is going to require a large in-vestment of time, effort, energy and yes, even money. You’re going to have to invest in books, audio and video programs,

seminars, and other learning tools. You need to have your own personal library of educational and motivational mate-rials. You also need to invest in the tools of your trade and other items. I remember borrowing money from my parents to buy clothes, a couple of nice pens, and office supplies so I could look the part of a successful stockbroker. I also bor-rowed money from them for several educational and moti-vational programs. This was extremely difficult for me to do. It shook my confidence and dented my ego but I had to do it if I was going to make it. Winners are always willing to place a bet on themselves. The truth is, if you are not investing in yourself, you’re not serious about your career and you’re not committed to success. After I do a speaking engagement or training, the first people who approach me about investing in my book, CDs, and other items are the most successful people. They have an abundance mentality and they know that even one new idea will more than cover their investment.

Rule #3: You can’t cheat your way to success. I’ve seen people who walk in the gray areas and justify cutting a few corners to make more money faster. I’ve also seen the people who overtly lie and misrepresent their prod-uct to make some quick sales. While the first scenario isn’t as bad as the second, both of these are an attempt to “cheat” the system and bring success more quickly. And while you may make some short-term sales, and perhaps even appear to be successful to others, both of these scenarios always end badly in the long run. The only way to sell is with complete honesty and integ-rity. Yes, following the rules and doing things the right way may take longer and be harder, but at the end of the day, your character and reputation will still be intact and you’ll still be able to look at yourself in the mirror. In the end, any short-term gain by cheating the system will always lead to long-term pain and a shortened career. The tried-and-true path to long-term sales success is one of honesty, integrity, and ethics. John Chapin is a sales and motivational speaker and trainer. For his free newsletter, go to: www.completeselling.com. John has over 28 years of sales experience as a number one sales rep and is the author of the 2010 sales book of the year: Sales Encyclopedia. You can contact John at 508-243-7359, [email protected] or visit his website: www.completeselling.com.

If you’re willing to work hard, stays disciplined, and do what needs to be done every day, whether you feel like it or not, you can be extremely successful in sales.

Contact NEDA today to get your copy of the:EquipmENt BluE Book, CompACt trACtor GuiDE,FArm EquipmENt GuiDE, ANtiquE trACtor GuiDE

or CoNstruCtioN EquipmENt GuiDE.

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Call NEDA at 800-932-0607 and ask for Kelli or email [email protected]

for individual prices or to purchaseany of these guides.

cREDIT cARD pROGRAMEMS (ELEcTRONIc MERcHANT SySTEMS)Steven Miller866-367-1818, Direct 585-285-9954F: [email protected]

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Physical Damage Insurance (HF&C, Inc.),Rental / Leasing Equipmentpatrick Burns at 800-289-1501, Ext. [email protected]•www.haylor.comWorkers' Comp (Return Dividend Program for NY Dealers only)Property & Casualty Insurance for VT patrick Burns at 800-289-1501, Ext. [email protected]•www.haylor.com

LEGAL ASSISTANcE – FREE LIMITED Dave Shay at 816-421-4460Fax:816-474-3447•[email protected]

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pARTNERSHIp FREIGHT pROGRAMYellow Freight, UPS Freight, FedEx GroundKeith Korhely at 800-599-2902 x [email protected]

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REGULATORy cONSULTANTS, INc.cERTIFIED Spcc pLANDave close at 800-932-0607 x 235Robb Roesch at 800-888-9596 x 222www.rci-safety.com

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Scott Grigor, NY Farm Show Manager800-932-0607, Ext. [email protected]

Art Smith, Consultant/Editor, NE Dealer717-258-8476, F: [email protected]

cHARTER SOFTWARE BUSINESS SySTEMSMelissa Amen303-932-6875 - Ext. 219www.chartersoftware.com

cERTIFIED BUSINESS vALUATIONSWestern Financial Consulting, P.C.curtis A. Kleoppel / Bob charbonneau816-561-5323 x 116 & 117Fax: 816-561-1249 or 800-762-5616

For Service / SPoNSoreD ProGrAMS,cAll Your ASSociAtioN

800-932-0607 • 315-457-0314 • Fax: 315-451-3548 • www.ne-equip.com


EqUipmENt iNDUstRY NEWs

Titan Machinery, Case IH’s largest dealership group, announced its third quarter results on Dec. 3. Ag equipment sales for the third quarter, ended Oct. 31, were down 38.1%, while total sales were down 30% vs. the third quarter of 2015. Looking ahead, Titan is forecasting ag same store sales to be down 28-33% for fiscal year 2016. Construction same-store sales are expected to be down 8-13% and international same store sales to be down 5%. The dealership is forecasting equipment margins of 7.7-8.3%.

~ AEI

Titan machinery Reports Weak 3q Results

Worldwide Ag Equipment sales continue sluggish paceThe global business climate for agricultural machinery remains weak going into the final months of 2015, according to the Agrievolution Alliance’s most recent survey of ag equipment manufacturers. The group describes the overall sentiment of the industry as “pessimistic.” The index shows a slight decline of 3 points from

the group’s April report; only manufacturers in China and India are in a “good mood.. “Sentiment has improved in recent months, but it’s unclear how much of it has to do with recent government interventions in the dairy market to prop up prices; the supports are expected to run through the end of the year.”

~ AEI

Ag Equipment Intelligence/December/2015 3

FARM MACHINERY TICKER (AS OF 12/10/15)

MANUFACTURERS Symbol 12/10/15 Price

11/12/15 Price

1-Year High

1-Year Low

P/E Ratio

Avg. Volume

Market Cap.

Ag Growth Int’l. AFN $29.05 $30.25 $57.99 $27.41 N/A 69,039 417.69M

AGCO AGCO $50.46 $45.48 $57.90 $41.85 15.86 1,271,800 4.32B

AgJunction Inc. AJX $0.64 $0.64 $0.84 $0.40 N/A 25,939 77.83M

Alamo ALG $53.26 $51.74 $64.45 $43.98 14.13 54,866 608.44M

Art’s Way Mfg. ARTW $2.96 $3.01 $5.98 $2.90 N/A 3,719 12.02M

Blount Int’l. BLT $9.91 $5.21 $17.97 $5.08 N/A 278,936 478.17M

Buhler Industries BUI $5.55 $5.70 $6.24 $4.44 35.35 4,611 138.75M

Caterpillar CAT $66.38 $68.69 $94.66 $62.99 13.67 6,716,630 38.65B

CNH Industrial CNHI $7.07 $6.75 $9.72 $6.31 42.85 1,486,640 9.62B

Deere & Co. DE $78.61 $73.22 $98.23 $71.85 13.62 3,763,940 25.8B

Kubota KUBTY $83.60 $81.85 N/A N/A 17.18 8,603 20.81B

Lindsay LNN $69.31 $68.93 $91.93 $63.19 31.22 116,453 782.47M

Raven Industries RAVN $16.57 $17.75 $26.07 $15.77 45.77 196,550 604.9M

Titan Int’l. TWI $4.06 $4.57 $12.50 $3.84 N/A 786,842 218.268M

Trimble Navigation TRMB $22.43 $21.54 $28.14 $15.90 38.61 1,988,820 5.62B

Valmont Industries VMI $109.24 $111.76 $133.94 $92.33 23.40 236,806 2.52B

RETAILERS

Cervus Equipment CVL $14.16 $13.40 $20.84 $12.71 N/A 19,808 220.44M

Rocky Mountain Equipment RME $6.64 $6.58 $9.74 $5.82 9.91 21,278 128.71M

Titan Machinery TITN $9.40 $12.43 $16.99 $8.99 N/A 193,430 199.77M

Tractor Supply TSCO $88.85 $89.77 $96.28 $74.52 29.69 1,160,530 11.94B

EU Stage V limits as an addition to the SCR system on 4.1-liter and larg-er engines and the diesel oxidation catalyst on 2.9- and 3.6-liter sizes.

OEMs using the EcoFit Single Module solut ion unvei led by Cummins for heavy-duty and mid-range engine applications are prom-ised easier exhaust treatment integra-tion. The module is up to 60% smaller and 40% lighter than today’s com-bined SCR and DPF systems, it says.

FPT Industrial says a particle filter will replace part of the SCR catalyst in its next-generation HI-eSCR system. Together with a lack of exhaust gas recirculation (EGR), this will help maintain the after-treatment instal-lation flexibility available with the manufacturer’s Tier 4 Final engines.

Perkins highlights its experience as an early adopter of DPF technology and is confident that its low tempera-ture regeneration system — to peri-

odically remove accumulated depos-its from the filter material — can be applied to Stage V engines while remaining “invisible” to the opera-tor and without interfering with the machine’s duty cycle or work load.

Germany-based MTU, a division of Rolls-Royce Power Systems, says the EU Stage V requirements and further improvements in fuel effi-ciency will be among priorities for product development.

Titan Machinery Reports Weak 3Q Results

Titan Machinery, Case IH’s largest deal-ership group, announced its third quarter results on Dec. 3.

Ag equipment sales for the third quar-ter, ended Oct. 31, were down 38.1%, while total sales were down 30% vs. the third quarter of 2015.

Looking ahead, Titan is forecasting ag same store sales to be down 28-33% for fiscal year 2016. Construction same-store sales are expected to be down 8-13% and international same store sales to be down 5%. The dealership is forecasting equipment margins of 7.7-8.3%.

Titan Machinery Segment Results (in thousands of $)

3 Months Ended Oct. 31

Revenue 2015 2014 % Change

Agriculture $ 211,302 $341,547 –38.1%

Construction $87,023 $98,246 –11.4%

International $46,650 $53,348 –12.6%

Total $344,975 $493,141 –30.0%

Source: Titan Machinery


FARM MACHINERY TICKER (AS OF 12/10/15)

MANUFACTURERS Symbol 12/10/15 Price

11/12/15 Price

1-Year High

1-Year Low

P/E Ratio

Avg. Volume

Market Cap.

Ag Growth Int’l. AFN $29.05 $30.25 $57.99 $27.41 N/A 69,039 417.69M

AGCO AGCO $50.46 $45.48 $57.90 $41.85 15.86 1,271,800 4.32B

AgJunction Inc. AJX $0.64 $0.64 $0.84 $0.40 N/A 25,939 77.83M

Alamo ALG $53.26 $51.74 $64.45 $43.98 14.13 54,866 608.44M

Art’s Way Mfg. ARTW $2.96 $3.01 $5.98 $2.90 N/A 3,719 12.02M

Blount Int’l. BLT $9.91 $5.21 $17.97 $5.08 N/A 278,936 478.17M

Buhler Industries BUI $5.55 $5.70 $6.24 $4.44 35.35 4,611 138.75M

Caterpillar CAT $66.38 $68.69 $94.66 $62.99 13.67 6,716,630 38.65B

CNH Industrial CNHI $7.07 $6.75 $9.72 $6.31 42.85 1,486,640 9.62B

Deere & Co. DE $78.61 $73.22 $98.23 $71.85 13.62 3,763,940 25.8B

Kubota KUBTY $83.60 $81.85 N/A N/A 17.18 8,603 20.81B

Lindsay LNN $69.31 $68.93 $91.93 $63.19 31.22 116,453 782.47M

Raven Industries RAVN $16.57 $17.75 $26.07 $15.77 45.77 196,550 604.9M

Titan Int’l. TWI $4.06 $4.57 $12.50 $3.84 N/A 786,842 218.268M

Trimble Navigation TRMB $22.43 $21.54 $28.14 $15.90 38.61 1,988,820 5.62B

Valmont Industries VMI $109.24 $111.76 $133.94 $92.33 23.40 236,806 2.52B

RETAILERS

Cervus Equipment CVL $14.16 $13.40 $20.84 $12.71 N/A 19,808 220.44M

Rocky Mountain Equipment RME $6.64 $6.58 $9.74 $5.82 9.91 21,278 128.71M

Titan Machinery TITN $9.40 $12.43 $16.99 $8.99 N/A 193,430 199.77M

Tractor Supply TSCO $88.85 $89.77 $96.28 $74.52 29.69 1,160,530 11.94B

EU Stage V limits as an addition to the SCR system on 4.1-liter and larg-er engines and the diesel oxidation catalyst on 2.9- and 3.6-liter sizes.

OEMs using the EcoFit Single Module solut ion unvei led by Cummins for heavy-duty and mid-range engine applications are prom-ised easier exhaust treatment integra-tion. The module is up to 60% smaller and 40% lighter than today’s com-bined SCR and DPF systems, it says.

FPT Industrial says a particle filter will replace part of the SCR catalyst in its next-generation HI-eSCR system. Together with a lack of exhaust gas recirculation (EGR), this will help maintain the after-treatment instal-lation flexibility available with the manufacturer’s Tier 4 Final engines.

Perkins highlights its experience as an early adopter of DPF technology and is confident that its low tempera-ture regeneration system — to peri-

odically remove accumulated depos-its from the filter material — can be applied to Stage V engines while remaining “invisible” to the opera-tor and without interfering with the machine’s duty cycle or work load.

Germany-based MTU, a division of Rolls-Royce Power Systems, says the EU Stage V requirements and further improvements in fuel effi-ciency will be among priorities for product development.

Titan Machinery Reports Weak 3Q Results

Titan Machinery, Case IH’s largest deal-ership group, announced its third quarter results on Dec. 3.

Ag equipment sales for the third quar-ter, ended Oct. 31, were down 38.1%, while total sales were down 30% vs. the third quarter of 2015.

Looking ahead, Titan is forecasting ag same store sales to be down 28-33% for fiscal year 2016. Construction same-store sales are expected to be down 8-13% and international same store sales to be down 5%. The dealership is forecasting equipment margins of 7.7-8.3%.

Titan Machinery Segment Results (in thousands of $)

3 Months Ended Oct. 31

Revenue 2015 2014 % Change

Agriculture $ 211,302 $341,547 –38.1%

Construction $87,023 $98,246 –11.4%

International $46,650 $53,348 –12.6%

Total $344,975 $493,141 –30.0%

Source: Titan Machinery


EqUipmENt iNDUstRY NEWsEqUipmENt iNDUstRY NEWs

Of the 12 product categories included in Ag Equipment Intelligence’s monthly Dealer Sentiments survey, only one has consistently shown positive results during the past 12 months when it comes to dealer sales — commercial and consumer equipment. This includes equipment typically utilized by large property owners, hobby farmers, as well as landscape and light construction contractors. In other words, zero-turn mowers, lawn tractors, compact tractors (less than 40 horsepower), utility vehicles, power tools, skid steers and a host of other smaller equipment. As dealers handling high horsepower machines have faced a downturn in sales for the past 2 years, more than 88% of what we refer to as “rural lifestyle dealers” throughout North America expect total revenues to be as good as or better than last year. This optimism follows the 2015 survey when nearly 84% expected total revenues to be as good as 2014. “Dealers have good reason to be optimistic as the economy overall is sending good signals.” New home construction, a leading indicator for the market, and builder confidence, which has been in the 60s, with 50 being neutral. “A firming economy, continued job creation and affordable mortgage rates should keep housing on an upward trajectory as we approach 2016.”

Customer growth Besides strong consumer sentiment, another factor contributing to the upward trend is the growing customer

While Big Ag Equipment sales Lag, c&cE Dealers Look for solid sales

Weak Ag Equipment sales continue North American large ag equipment sales declines continued during November, with 4WD tractor salesdown 37.6% year-over-year, combine sales down 22.7% and row-crop tractor sales down 38.2%, according tothe latest numbers released by the Assn. of Equipment Manufacturers. Mid-range tractors were down as well, dropping 11% year-over-year following a 3.2% decrease the prior month. Meanwhile, compact tractor sales saw a less than 1% increase. Mig Dobre, analyst with RW Baird, notes that November is a seasonally unimportant month and inventory continues to build on a days-sales basis year-over-year across all categories.

~ AEI

base. About 68% of dealers say their markets have grown 5-20% in the last 5 years, compared with about 76% for 2015, and 16% report market growth of 20% or more, compared with about 13% last year. Fewer dealers reported a shrinking market, 7.3% compared with 10.4% in the 2015 survey.

~ AEI

December 15, 2015Vol. 21, Issue 12

• Crop Receipts Flat

• EU Emission Regs

• Leasing Comments

Of the 12 product categories included in Ag Equipment Intelligence’s monthly Dealer Sentiments survey, only one has consistently shown positive results during the past 12 months when it comes to dealer sales — commercial and consumer equipment. This includes equipment typically utilized by large property owners, hobby farmers, as well as landscape and light construction contractors. In other words, zero-turn mowers, lawn tractors, compact tractors (less than 40 horsepower), utility vehicles, power tools, skid steers and a host of other smaller equipment.

As dealers handling high horsepower machines have faced a downturn in sales for the past 2 years, more than 88% of what we refer to as “rural lifestyle dealers” through-out North America expect total revenues to be as good as or better than last year. This is according to Ag Equipment Intelligence’s sister publication Rural Lifestyle Dealer’s 2016 Dealer Business Trends & Outlook survey. This opti-mism follows the 2015 survey when nearly 84% expected total revenues to be as good as 2014. Lynn Woolf, manag-ing editor of Rural Lifestyle Dealer, says, “Dealers have

While Big Ag Equipment Sales Lag, C&CE Dealers Look for Solid Sales

The contents of this report represent our interpretation and analysis of information generally available to the public or released by responsible individuals in the subject companies, but is not guaranteed as to accuracy or completeness. It does not contain material provided to us in confidence by our clients.

Individual companies reported on and analyzed by Lessiter Media, may be clients of this and other Lessiter Media services. This information is not furnished in connection with a sale or offer to sell securities or in connection with the solicitation of an offer to buy securities.

Continued on page 8

Dow Chemical Co. and DuPont Co. anounced Dec. 11 they are merging in a $130-billion chemical industry megadeal, according to the Associated Press. “The merger would com-bine two top suppliers of industrial and agricultural chemicals and crop seeds,” the Wall Street Journal reported on Dec. 9.

Each company has a market capitalization of about $60 billion, according to the report, which makes both much larger than any of the major ag equipment makers. But agricultural products make up only part of both companies’ revenues. According to WSJ, through the first 9 months of 2015, Dow’s revenue derived from ag was about $4.8 bil-lion out of a total of $37.3 billion, while DuPont’s ag busi-ness was $8.2 billion of a total of $19.8 billion through the first three quarters of this year.

While, by no means, a done deal, talks between the two ag giants would seem to lend further credence to Rabobank’s

Does Proposed Dow, DuPont Deal Support Potential Ag Equipment M&A Speculation?

Continued on page 2

Tier 1 OEMs — Ranked by 2014 Revenue

When considering agriculture sales, Deere’s sales are 40% larger than CNH and 2.5 time larger than that of Kubota and AGCO.

Source: Bloomberg, company reports, 2015

0

Nov. 2014 +21%+2%

+17%+2%

+16%+20%

+21%+10%

+15%+11%

+13%+9%

Dec. 2014Jan. 2015Feb. 2015Mar. 2015Apr. 2015

May. 2015Jun. 2015Jul. 2015

Aug. 2015Sep. 2015Oct. 2015

5 10 15 20 25

Dealer Sentiments Commercial & Consumer Equipment

(% dealers rating sales strength as positive or very strong)

C&CE have been the only category showing positive trends consis-tently over the past 12 months in AEI’s Dealer Sentiments survey.

Source: Ag Equipment Intelligence, Dealer Sentiments surveys


North American large ag equipment sales declines continued during November, with 4WD tractor sales down 37.6% year-over-year, combine sales down 22.7% and row-crop trac-tor sales down 38.2%, according to the latest numbers released by the Assn. of Equipment Manufacturers. Mid-range tractors were down as well, dropping 11% year-over-year follow-ing a 3.2% decrease the prior month. Meanwhile, compact tractor sales saw a less than 1% increase.

Mig Dobre, analyst with RW Baird, notes that November is a seasonally unimportant month and inventory continues to build on a days-sales basis year-over-year across all categories.

U.S. and Canada large tractor and combine sales decreased 36% year-over-year in November, which is down from the 31% drop in October. U.S. sales were down 39% year-over-year and Canadian sales were down 23%.

Combine sales fell, posting a 22.7% year-over-year decrease in November following an 18.7% decrease in October. U.S. combine inventories were 31.2% lower year-over-year in October vs. down 29.3% in September.

Row-crop tractor sales saw a 38.2% year-over-year decline, down from the 33.7% drop observed in October. U.S. row-crop tractor inven-tories decreased 20% year-over-year in October vs. a 22.9% decrease the previous month.

November is typically a below-aver-age month for row-crop tractor sales, accounting for just 6.3% of annual sales over the last 5 years.

4WD tractor sales declined 37.6% in November vs. the same period in 2014. This is down from the 29.5% drop in October. U.S. dealer invento-ries saw a 32.5% drop for 4WD trac-tors in October.

Mid-range tractor sales decreased in November, down 11% year-over-year after a 3.2% decrease the month before. Compact tractor sales were nearly flat at up 0.9% after the 17.6% increase in October.

Weak Ag Equipment Sales Continue

NOVEMBER U.S. UNIT RETAIL SALES

Equipment November 2015

November 2014

Percent Change

YTD 2015

YTD 2014

Percent Change

October 2015 Field Inventory

Farm Wheel Tractors-2WD

Under 40 HP 5,104 5,019 1.7 110,433 102,583 7.7 65,940

40-100 HP 3,115 3,470 –10.2 53,712 54,300 –1.1 33,643

100 HP Plus 914 1,540 –40.6 21,741 28,799 –24.5 9,795

Total-2WD 9,133 10,029 –8.9 185,886 185,682 0.1 109,378

Total-4WD 142 253 –43.9 2,702 4,679 –42.3 935

Total Tractors 9,275 10,282 –9.8 188,588 190,361 –0.9 110,313

SP Combines 204 284 –28.2 4,692 7,222 –35.0 1,078

NOVEMBER CANADIAN UNIT RETAIL SALES

Equipment November 2015

November2014

Percent Change

YTD 2015

YTD 2014

Percent Change

October 2015 Field Inventory

Farm Wheel Tractors-2WD

Under 40 HP 836 870 –3.9 11,943 12,942 –7.7 9,102

40-100 HP 582 686 –15.2 5,417 6,454 –16.1 4,242

100 HP Plus 250 345 –27.5 4,014 5,324 –24.6 2,111

Total-2WD 1,668 1,901 –12.3 21,374 24,720 –13.5 15,455

Total-4WD 79 101 –21.8 773 1,138 –32.1 331

Total Tractors 1,747 2,002 –12.7 22,147 25,858 –14.4 15,786

SP Combines 140 161 –13.0 1,752 2,075 –15.6 426

— Assn. of Equipment Manufacturers

U.S. UNIT RETAIL SALES OF2-4 WHEEL DRIVE TRACTORS & COMBINES

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

30,000

28,000

26,000

24,000

22,000

20,000

18,000

16,000

14,000

12,000

10,000

8,000

6,000

2015 5 year average



USDA’s year-end crops report provided little reason to expect a significant pick up in overall crop receipts in the year ahead. According to industry analysts, the ag agency’s Dec. 9 World Agricultural Supply Demand Estimates points toward major crop receipts for 2015 at about $96 billion, or down approximately 8% year-over-year. Total cash receipts is a leading indicator of U.S. farmers’ buying power.

~ AEI

Despite sagging sales, Deere Turns a profit for FY15; Expects same in 2016 Deere & Co. managed to pull a rabbit out of a hat by posting $351 million in earnings for its fourth quarter of the current fiscal year and $2.177 billion for the full year, compared with $910 million and $4.297 billion in 2014. Pretty good considering year-over-year fourth-quarter net sales were down by 26% and down 22% for the year.

~ AEI

Forecast, u.s. Farm cash ReceiptsLittle change seen for crop Receipts in 2016

italy’s Goldoni ceases Tractor operations; seeks investors One of Italy’s specialty tractor manufacturers is seeking new investors to stave off closure and the loss of some 300 jobs. Goldoni manufactures a range of 4WD orchard and vineyard tractors of 50-100 horsepower, plus walk-behind tractors, at its Migliarina works near Modena, northern Italy. Sales throughout the country and other Mediterranean states account for the bulk of its turnover, but Goldoni also sells into other markets worldwide. In the U.S., Goldoni’s load-carrying Transcar multi-purpose tractor is distributed by Oesco Inc., Conway, MA

~ AEI


USDA’s year-end crops report provided little reason to expect a significant pick up in overall crop receipts in the year ahead. According to industry analysts, the ag agency’s Dec. 9 World Agricultural Supply Demand Estimates points toward major crop receipts for 2015 at about $96 billion, or down approximately 8% year-over-year. Total cash receipts is a leading indicator of U.S. farmers’ buying power.

Following the release of the latest WASDE, Michael Shlisky, analyst for Seaport Global Securities, reported, “Our 2015-16 major-crop receipts forecast is now $96.1 billion, down 8% year-over-year, unchanged from last month. When adjusted for the calendar year, other crops and live-stock-related expectations, we cur-rently forecast that overall farmer cash receipts will be down 10% in 2015, including –13% for major crops, followed by an incremental decline of 4% in 2016, including –5% for major crops.”

While most key numbers were

unchanged from the November esti-mates, they represent a “continued downside risk to ag machinery demand estimates,” said C. Schon Williams, ana-lyst for BB&T Capital Markets.

During its conference call with analysts on Nov. 25, Deere & Co. upped its estimates for U.S. farm cash receipts for both 2015 and 2016 from its previous forecast. But the compa-ny expects overall receipts this year to come in lower than 2014. “Given the record crop harvest of 2014 and consequently the lower commodity prices we’re seeing today, our 2015 forecast calls for cash receipts to be down about 8% from 2014’s peak

levels,” said Susan Karlix, manager, Investor Communications. “Moving to 2016, we expect total cash receipts to be about $394 billion, roughly flat with this year.”

When questioned by analysts why they increased their cash receipts out-look for 2016, Tony Huegel, Deere’s director of Investor Relations seemed to indicate the company was looking for a pick up in prices at the end of next year. “The ‘16 cash receipts num-ber is a calendar number [vs. market-ing year], so it does reflect a bit at the tail end of 2016, relative to what we would anticipate for next year’s crop year,” he said.

Little Change Seen for Crop Receipts in 2016

Forecast — U.S. Farm Commodity Prices 2015-16 (dollars per bushel)

Deere & Co. Estimates* USDA Estimates**

Corn $3.65 $3.35-$3.95

Soybeans $8.90 $8.15-$9.65

Wheat $5.00 $4.80-$5.20

*Forecast as of Nov. 25, 2015; **Forecast as of Dec. 9, 2015

Forecast — U.S. Farm Cash Receipts (in billions $)

2014 Forecast 2015 Forecast Previous 2015 2016 Forecast Previous 2016

Crops $207.9 $193.3 $180.4 $192.8 $182.6

Live Stock $212.2 $190.3 $197.7 $192.2 $191.8

Gov’t Payments $9.8 $11.1 $12.4 $9.4 $10.6

Total Cash Receipts $429.9 $394.7 $390.5 $394.4 $385.0

Source: Deere & Co. forecast as of Nov. 25, 2015 (previous forecast Aug. 21, 2015)

One of Europe’s leading tractor loader manufacturers is eyeing expansion in the U.S. market through a new partner-ship with OEM specialist KMW Ltd.

G e r m a n y ’s W i l h e l m S t o l l Maschinenfabrik has underpinned the new relationship by investing in a non-controlling stock holding in KMW, which continues to be run by founder Mike Bender as president and general manager.

“KMW provides a dynamic platform for the expansion of Stoll in North America, building on the two com-panies’ established global distribution

partners,” says Stoll managers.KMW’s established OEM expertise

accounts for some 95% of operations, which employs 135 people at 3 loca-tions in Kansas.

Stoll has manufactured loaders for 50 years. It employs 500 people across 3 locations, generating sales of around €80 million ($86 million).The compa-ny has an OEM agreement with CNH Industrial to supply Case IH and New Holland dealers.

A similar agreement with Same Deutz-Fahr Group extends worldwide, so the U.S. importer of Deutz-Fahr trac-

tors, Bavarian Tractor Works, Kerman, Calif., has access to the range.

Armin Walter, Stoll sales and mar-keting director, told Ag Equipment Intelligence: “In order to grow our business, we want more OEM sales globally and especially in North America, where we felt it necessary to have local manufacturing and a product that suits the market.

“We are also discussing whether KMW could establish a sales and dealer organization to act as the U.S. distributor for our European high-end loaders,” he said.

Stoll Eyes U.S. Market Through Partner KMW

4 Ag Equipment Intelligence/December/2015

Deere & Co. managed to pull a rabbit out of a hat by posting $351 million in earnings for its fourth quarter of the current fiscal year and $2.177 billion for the full year, compared with $910 million and $4.297 bil-lion in 2014. Pretty good consider-ing year-over-year fourth-quarter net sales were down by 26% and down 22% for the year.

One analyst noted, “Deere has done an admirable job of managing mar-gins through the current downturn.” At the same time, he noted for 2016, the company would benefit from about $200 million in lower pension and OPEB (other post employment benefits), but after that “Deere is cut-ting closer to the bone.”

Unfortunately, if the company’s outlook for 2016 is on target, the industry is looking at another diffi-cult year for equipment sales. Overall, Deere’s equipment sales are project-ed to decrease about 7% for the fis-cal year and to be down 11% for the first quarter compared with a year-ago. Nonetheless, for fiscal 2016, net income attributable to Deere & Co. is anticipated to be about $1.4 billion.

In a note, Mig Dobre, analyst for RW Baird, called the company’s Ag & Turf outlook “realistic.” But Deere’s forecast for North American 2016 ag sales are expected to be down even more, and nearly as bad as this past year. “Sales for the Ag & Turf division to be down about 8% year-over-year with about a 7% operating margin. Embedded in Deere’s guidance is a 15-20% decline in industry U.S. and Canada ag equip-ment sales (down 25-30% in large ag) which is realistic in our view, particu-larly given Deere’s higher level of vis-ibility into this business.”

Despite Sagging Sales, Deere Turns a Profit for FY15; Expects Same in 2016

Deere & Co. 4Q15 Overview (in millions $)

4Q 2015 4Q 2014 % Change

Net Sales & Revenues $6,715 $8,965 –25%

Net Sales $5,932 $8,043 –26%

Net Income $351 $649 –46%

Ag & Turf

Net Sales $4,656 $6,169 –25%

Operating Profit $271 $682 –60%

Source: Deere & Co..

Deere Comments on Leasing Trends

Leasing has been the hot topic in the ag equipment market in recent months. Dealers have expressed concerns about the potential impact on used equipment values down the road when this equipment comes off lease.

A Deere & Co. spokesperson addressed the subject during the conference call with analysts on Nov. 25. As of Oct. 31, 2015, operating leases made up 13% of Deere’s lending portfolio, which is up two points vs. a year earlier. In terms of dol-lars, the value of operating leases was about $4.4 billion in 2014 vs. nearly $5 bil-lion for the same period in 2015.

“JD Financial has not been encouraging customers to utilize leases in general or short-term leases specifically through pricing or residual values,” said Susan Karlix, manager, Investor Communications.

“Leasing, however, is becoming more attractive to many of our customers. That’s because of an uncertain business environment, coupled with the lack of confi-dence and clarity in tax incentives.”

Deere & Co. Worldwide Financial Services

Information above includes all of Deere’s lending activities worldwide.

Source: Deere & Co.

$38.2 Billion Net Portfolio $39.6 Billion Net Portfolio

Oct. 31, 2015 Oct. 31, 2014

Installment and Finance

Lease59%

Wholesale/Floorplan

21%

Revolving Credit7%

Operating Lease

13%Installment and Finance

Lease60%

Wholesale/Floorplan

22%

Revolving Credit7%

Operating Lease

11%

What Are the Major Equipment Makers Doing in Russia?

AGCO. Assembly of Challenger and Massey Ferguson brand-ed tractors and harvesters began in January upon completion of a joint venture announced in 2013 between AGCO and Russian Machines (part of the Basic Element industrial group). The 50/50 partners in AGCO Machinery LLC planned to invest $100 million over 3 years, which will expand local component production at a new 27,000 square meter facility near Moscow and add Fendt and Valtra distribution to the business.

CNHI. CNH Industrial has assembled combines and trac-tors at Naberezhnaya Chelny since starting a JV with auto-

motive group Kamaz in 2010. The Russian partner opted out 3 years later as part of a group restructuring and CNHI paid $13 million for complete ownership of the commercial and industrial operations.

Deere. Deere & Co. opened a parts distribution and production facility for large combines and tractors at Domodedovo in 2010. The following year, plans were announced to double manufactur-ing space at the plant and spend $32 million to increase seeder, tillage equipment and crop application machinery production by replacing an existing facility in Orenburg.

Deere comments on Leasing Trends Leasing has been the hot topic in the ag equipment market in recent months. Dealers have expressed concerns about the potential impact on used equipment values down the road when this equipment comes off lease.

~ AEI

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