Farm Wealth Gain Sets Strong Ag-Equipment Tone For 2012 (DE, AGCO, TSCO, RBA)

The USDA has just released the farm income data.  The gains in wealth and income for farmers in 2011 over 2010 are projected to be handy gains, up in the double-digits in many cases.  You can never declare that success in one year will lead to massive spending the following year, but 2011 was projected to be a record year for farmers.  It should at least offer some support for the agricultural equipment sector.

Deere & Company (NYSE: DE) is the direct play on agricultural equipment.  As the Big Kahuna, its share price is $75.84 and its 52-week trading range is $59.92 to $99.80.

AGCO Corporation (NYSE: AGCO) is in the second tier and at $42.77 the 52-week trading range is $30.11 to $59.81.  Tractor Supply Company (NASDAQ: TSCO) was just touted by Jim Cramer on CNBC’s Mad Money and at $70.00, its 52-week trading range is $41.52 to $78.22.

Ritchie Bros. Auctioneers Incorporated (NYSE: RBA) is further down the line but its sells into agriculture and related markets.  At $19.29 its 52-week trading range is $17.90 to $31.75.